Daily Forex Market by FXCC 12Jan2012

The euro was 0.4 percent from its sixteen month low versus the dollar

The euro was little changed at $1.2709 as of 8:15 a.m. in Tokyo from yesterday in New York, when it slid to as low as $1.2662, the weakest level since September 2010. It bought 97.72 yen from 97.67. The dollar traded at 76.89 yen from 76.85. GBP/USD sold off on Wednesday as doubts regarding the fragile European economy pushed market participants toward safer haven currencies causing interest in the greenback across the board. The sell-off broke through several levels of clustered support, extended to a fresh 3-month low of 1.5307 finally losing circa 1% on the trading day. EUR/GBP reached at 0.8287 the highest price since last Thursday. Price began testing the resistance area located around 0.8290 that capped the rise a week ago. The pair is extending the recovery after falling on Monday to 0.8220, this was the the lowest price printed in over 15 months, the euro rise was supported by the decline of the Pound across the board versus most of its major peers.

The Canadian currency, nicknamed the loonie for the image of the aquatic bird on the C$1 coin, declined 0.4 percent to C$1.0196 per U.S. dollar at 5 p.m. Toronto time. One Canadian dollar buys 98.08 U.S. cents. Wednesday saw the AUD/USD pair trade in range between 1.0260 and 1.0325, ending trade in New York flat over thd 24 hours prior period. New Zealandís currency was little changed at 79.67 U.S. cents.

2012-01-12 12:00 GMT

United Kingdom BoE Asset Purchase Facility (Jan)

2012-01-12 12:00 GMT

United Kingdom BoE Interest Rate Decision (Jan 12)

2012-01-12 12:45 GMT

European Monetary Union ECB Interest Rate Decision

2012-01-12 13:30 GMT

European Monetary Union ECB President Draghi's Speech

2012-01-12 05:36 GMT

EUR/USD, semi-paralyzed ahead of risk events

2012-01-12 05:15 GMT

Japan Eco Watchers Survey: Current improves to 47 in Dec

2012-01-12 01:36 GMT

China: CPI, PPI both lower in the year to Dec

2012-01-12 00:08 GMT

EURUSD 1.27200 / 1.27204
High: 1.27279 | Low: 1.2702 | Chg: 0.0014 0.11%

Resistance Levels: 1.3021| 1.2969|1.2897 |1.2817
Support Levels: 1.2666 |1.2597 |1.2561| 1.2507

TREND : down trend
MA10: neutral
MA20: neutral
STOCHASTIC : neutral

MARKET ANALYSIS - Intraday Analysis

EURUSD fell yesterday and reached a low at 1.2666 (S1) and then rebounded for a couple of pips and is now heading towards the same support level. A break below that level, we can expect target at 1.2597 (S2) and 1.2591 (S3). On the other hand if price manages to stay above our support level of 1.2666 (S1) the expected target is at 1.2817 (R1). Our recommendation for today is short positions at 1.26666 (S1) with a stop loss above 1.2709.

GBPUSD 1.53279 / 1.53287
High: 1.53347 | Low: 1.53096 | Chg: 0.0001 0%

Resistance Levels: 1.5629| 1.5579| 1.5497 |1.5394
Support Levels: 1.5262 |1.5213| 1.5178| 1.5134

TREND: down trend
MA10 : bearish
MA20 : Bearish
STOCHASTIC : neutral

MARKET ANALYSIS - Intraday Analysis

GBPUSD fell sharply yesterday and made a bottom at 1.5308. A break below that level we can expect the price to retest 1.5262 (S1), a weekly support level. Both of our Moving Averages are pointing to a bearish signal. We believe that the bearish pressure will continue.

USDJPY 76.890 / 76.894
High: 76.915 | Low: 76.825 | Chg: 0.033 0.04%

Resistance Levels: 78.03 |77.56| 77.33| 77.03
Support Levels: 76.76 |76.60| 76.04 |75.08

TREND: up trend
MA10 : bullish
MA20: neutral
STOCHASTIC : neutral

MARKET ANALYSIS - Intraday Analysis

USDJPY formed a top at 77.03 (R1) but couldnít break above that level and bounced back towards 76.76 yesterday support. It seems that the USDJPY is gaining momentum and we can expect bullish moves in todayís session. Look for long positions targeting 77.33 (R1) with a stop loss below 76.60 (S2).

Source: FX Central Clearing Ltd, (http://www.fxcc.com)
URL: https://support.fxcc.com/email/technical/12012012