Technical analysis 31/12/09 of FXCBS
This is technical daily and provided by specialists and analysts from FXCBS
Thursday December 31 , 2009
Previous session overview
The euro dollar pair was in an attempt to rise against the dollar yesterday, but it failed to break the resistance level of 1.44240 from where it dropped back to the 1.43970 levels .
The pound raise against its American counterpart, as it stopped at the resistance level of 1.61450 ,the pair trading now around the level 1.61343.
The dollar yen pair continued to gain yesterday as the dollar is attracting investors more than the Japanese yen in the last period. The pair reached the resistance level 92.500 where it is trading around today.
Market Expectations
EUR/USD :
Stochastic for the pair euro against the U.S. dollar appears saturated in the procurement process which leads us to expect a downward trend in real aims to the level 1.42150 and that expectation requires constant trading below 1.44620. The overall trend is still declining steadily towards to the 1.40850.
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GBP/USD :
Sterling rose against the U.S. dollar late yesterday in a correction movement to the level 61.8% Fibonacci, today we expect a downward trend for the pair to return to the targets 1.59500 and then 1.59000 to open the way for further decline.
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USD/JPY :
The dollar against the Japanese yen touched the resistance level yesterday at 92.500 , Stochastic indicators show saturation in the procurement process , so expect downward trend to the target 92.000 then to the 91.500 , taking into account that the penetration for the resistance point at 92.500 negate these expectations.
http://www.fxcbs.com/newsletter/images/USDJPY.gif
USD/CAD :
We might witness some volatility around the new support level in an attempt to gain upside momentum to support the bullish expectations for further upside moves over intraday basis which targets initially 1.06500 , the upside move requires the stability of 1.04450.
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Senior Analyst / Ali Hasan / FXCBS
