Fears for the spreading of the European crises are growing.
Asian and European trading sessions:
Euro: Today the euro was mainly pressured by the increased concerns that the Ireland crises would spread on the other countries, such as Spain and Portugal. The fact that the EC concluded to offer the credit to Ireland did not support the euro.
Concerns for the release of the negative Euro-zone fundamentals reinforced the pressure on the euro. According to the published information, the German unemployment change for November decreased only for 9K against the expected decrease for 20K. In addition to that, the Euro-zone unemployment rate increased to 10.1%, which matched the expectations. Consequently, the euro could not be supported by the released data.
The EUR/USD pair traded in the range of $1.3070-$1.3150, and the minimum was hit at the mark of $1.2975.
US Dollar: The intentions of the Chinese government and the drop at the stock markets increased the demand for the save-haven assets, and the investors’ willingness to take risks dropped. The greenback strengthened.
British Pound: The British pound demonstrated a stronger consolidation, compared to the euro and in spite of the risk sentiment pressure. The GBP/USD pair traded in the range of $1.5506-$1.5572.
Japanese Yen: The yen was consolidating against its major counterparts as a save-haven currency, due to the fact that Chinese government might accept additional measures aimed to weaken the economy.
Oil: Oil prices demonstrated some decline to the level of $84.11 per barrel due to the strengthening of the American dollar.
Gold: The gold rate grew to the level of $1386.10 per ounce, and the silver price increased as well and reached the $28.21 price per ounce.
American trading session:
Euro: The EUR/USD pair renewed its minimums at the mark of $1.2967, but the pair managed to close the day above the $1.3000 level.
US Dollar: The released US fundamentals during the American session turned out to be better than expected, but that fact did not influence the trading dynamics. The Chicago purchasing manager was 62.5 against the expected 59.9. The consumer confidence for November turned out to be 54.1 compared to forecasted level of 53.
Technical analysis for 1/12
EURUSD
The pair has broken Fibonacci retracement 38.2% at 1.30987 and declined to support level at 1.30277 and may roll back to Fibonacci level at 1.30987.
Resistance: 1.31674, 1.33143, 1.34882
Support: 1.30277, 1.28630, 1.26897
GBPUSD
The pair has reached support 1.54842 and rolling back to 1.56722.
Resistance: 1.56722, 1.58543, 1.60322
Support: 1.54842, 1.53482, 1.52063
USDCHF
The pair stays below resistance 1.00466. It may bring pair to decline to 0.99608.
Resistance: 1.00466, 1.01595, 1.02747
Support: 0.99608, 0.98750, 0.97892
USDJPY
The pair has started corrections. First aim is at 83.065.
Resistance: 83.933, 84.866, 85.960
Support: 83.065, 82.219, 81.399
AUDUSD
The pair has declined to Moving Average (100) at 0.95761. If the pair breaks this level the next level will be at Moving Average (200) at 0.93788.
Resistance: 0.96464, 0.97424, 0.98436
Support: 0.95154, 0.93788, 0.92170