Market review for 23 – 27.01, 2012
Euro: The euro fell at the beginning of the week on Monday’s Asian session amid continuing disagreement in the negotiations on restructuring the debt of the Greece. Came later positive dynamics for the currency were on the background of speculations that the heads of the European countries at meeting in Brussels will take decisive actions to address the debt crisis in the region. One of the main topics of the meeting were the situation in Greece. The euro stepped back from the three-week highs on Tuesday. The investors and traders were taken profits on their opened before positions on Euro currency. Moreover, many market participants took cautious positions and did not want to open any long positions on Euro currency against the background of the prolonged negotiations on Greek debt. This issue was the main reason for the falling confidence of market participants which fell along with the euro currency on Wednesday. The Euro dropped against its major competitors. Thursday’s and Friday’s sessions the European currency spent in a relatively small range 1.3085 -1.3175 against the U.S. dollar and the EUR/USD pair closed its week very close to 1.3200 level.
US Dollar: This week had very negative effect on the U.S. currency. The Greenback came under pressure on all of its competitors. After sales on Monday ,the Tuesday’s sessions though provided some positive support for the currency. The investors’ attentions were pointed towards the started two-day’s meeting of the Federal Open Market Committee of US. Also, the trading dynamics of U.S. dollar were positively affected by the growing demand for safe haven assets against the background of the negative dynamics on the main European stock exchanges. The U.S. dollar dropped steeply against almost all of its major competitors during Thursday’s sessions on the background of FOMC’s decision. The committee decided to leave the interest rate unchanged at 0, 25% value and stated that this rate is going to be kept till 2014 year. The USDX index decreased by almost 1.1% to 79.12 value.
British Pound:The pound fell after the report of GDP in Britain on Wednesday, which showed decrease in the 4th quarter by 0.2 % when expectations of a decline were by only 0.1%. The British pound still continues to feel itself not quite confident.
Japanese Yen: The yen fell against almost all of its major competitors after the Bank of Japan lowered the forecast of the economic growth for next year. In details, Japan, for the first in 31 years, reported a deficit of annual trade balance recording a deficit of $ 205.1 billion yen in 2011.
Weekly technical analysis for 30.01-3.02
EURUSD
The pair has broken Moving Average (500) and reached 1.25667 where the pair found support and rolled back to 1.31784.
Resistance: 1.33427, 1.37441, 1.41130
Support: 1.28800, 1.25667, 1.20280
GBPUSD
The pair may try to decline to Fibonacci 23% at 1.53340.
Resistance: 1.59962, 1.64274, 1.68504
Support: 1.52523, 1.48532, 1.43344
USDCHF
The pair has declined to 0.91074. If this level is broken the pair will decline to 0.88022.
Resistance: 0.93264, 0.96597, 0.99031
Support: 0.91074, 0.88022, 0.85633
USDJPY
The pair has declined to support level at 76.535.
Resistance: 80.244, 83.330, 86.836
Support: 76.535, 73.126, 69,117
AUDUSD
The pair has reached 1.05810.
Resistance: 1.05810, 1.07806, 1.09604
Support: 1.03847, 1.01873, 1.00031