Technical analysis 7/01/10 of FXCBS

This is Technical analysis daily and provided by specialists and analysts from FXCBS

Thursday January 7 , 2010

Previous session overview

The euro dollar pair fell slightly to record a low of 1.43550 and a high of 1.44450, having the European Union currency trading around 1.43711.

As for the pound dollar the pair declined to record a low of 1.59311 and a high of 1.60573, having the royal currency trading around 1.59486. The pair rose yesterday after reaching the 1.59350 levels where it found a strong support.

Finally, the dollar gained slightly against the Japanese yen to record a high of 92.871 and a low of 92.105 and the pair is currently trading around 92.744.



Market Expectations

EUR/USD :
We expect today to the pair euro against the U.S. dollar down another time to test the support level at 1.42650 and if the pair can breakthrough this support point the price will move towards to the 1.41970, stochastic indicator support these expectations and that requires consistency for trading below 1.44850.

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


GBP/USD :
Stochastic showing mixed signals, which may lead to fluctuating slightly before continuing to decline toward to the goals referred to earlier at 1.58900 and then further to the level 1.57800 , this expectation requires stable for trading below the resistance level at 1.60550.

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

USD/JPY :
Stochastic still shows signs of a negative downward spiral for a couple of the U.S. dollar against the yen, which leads us to expect that the trend of the pair still down and we expect to reach the level of 90.900 these expectations necessarily require a constant price below the level of 93.000 and to close four hours candle below this level.

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

Senior Analyst / Ali Hasan /FXCBS

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