Technical analysis 4/01/10 of FXCBS

This is technical daily and provided by specialists and analysts from FXCBS

Monday January 4 , 2010

Previous session overview

The pair euro against the U.S dollar was trading in a narrow range, the highest was at 1.43369 and the low was recorded at 1.42570.

The pound traded in a narrow range against its American counterpart, the pair acheived the highest at 1.61511, the pair is trading now around the level 1.61315.

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 close to the resistance level 93.410 where it is trading around today.



Market Expectations

EUR/USD :
The Pair euro against the U.S. dollar is heading down constantly and close to touching the support level at the point at 1.42570, we expect that the pair will break through this support to touch the level 1.42150 ,which we expect the pair make correction movement upwards from that level to the level of 61.8% at the point 1.47450.

http://www.fxcbs.com/newsletter/images/EURUSD.gif

GBP/USD :
We expect the Pair of sterling against the U.S. dollar will go down during the trading day To the main support level at 1.59700 then to the level 1.59200, but the stochastic indicator shown some saturation in the procurement process, so expect the prices to fluctuate around the level 1.60600 to get rid of this saturation.

http://www.fxcbs.com/newsletter/images/GBPUSD.gif

USD/JPY :
The pair U.S dollar against the Japanese yen continues to rush to the top and close to the major resistance level at 93.410 , Stochastic shows some of saturation, which leads us to expect a decline in the price with a correction movement to the target 92.55 Before continuing the ascent again.

http://www.fxcbs.com/newsletter/images/USDJPY.gif

Senior Analyst / Ali Hasan / FXCBS

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