Daily Forex Market by FXCC 27Jan2012

MARKET OVERVIEW – JANUARY 27 2012
The dollar heads for a weekly decline

The dollar bought $1.3100 per euro as of 8:57 a.m. Tokyo time from $1.3109 Thursday. It yesterday dropped as low as $1.3184 per euro, the weakest level printed since Dec. 21. The greenback was little changed at 77.48 yen. The 17-nation euro fetched 101.50 yen from 101.53, following a 0.4 percent slide yesterday. The U.S. currency has weakened 1.3 percent versus the euro this week. It has appreciated 0.6 percent versus the yen since Jan. 20. The Euro retreated versus sterling after hitting at 0.8398, which was the strongest level seen in 4 weeks. The EUR/GBP dropped from the highs to 0.8347, a new daily low, during the American session. The US Dollar gained momentum across the board versus its major peers as Wall Street turned lower later in the NY session due to bank equities sliding. GBP/USD previously above 1.5700, lost strength retreating to 1.5685. USD/CHF bottomed on Wall Street opening at 0.9155, this was the lowest price witnessed since December 2, the pair moved off session lows later in the session. The recovery of the US Dollar found resistance at 0.9185/90
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UPCOMING EVENTS
2012-01-27 08:00 GMT | Spain Retail Sales (YoY) (Dec)
2012-01-27 09:00 GMT | European Monetary Union M3 Money Supply (3m) (Dec)
2012-01-27 09:00 GMT | European Monetary Union M3 Money Supply (YoY) (Dec)
2012-01-27 10:30 GMT | Switzerland KOF Leading Indicator (Jan)

FOREX NEWS
2012-01-27 05:20 GMT | EUR/JPY drops below 101.00 on general JPY buying interest
2012-01-27 04:01 GMT | EUR/JPY sneaks lower; 102.00 blocks rally scope
2012-01-27 00:27 GMT | Japan Retail Trade s.a (MoM) -0.4% in Dec
2012-01-27 00:04 GMT | BoJ to continue expansion of asset buying




EURUSD 1.31011 / 1.31016
High: 1.31193 | Low: 1.30775 | Chg: -0.0007 -0.05%
SUMMARY: Up
INTRADAY TREND: Uptrend
MA10: Bearish
MA20: Bearish
STOCHASTIC: Neutral



Resistance Levels: 1.3311 | 1.3268 | 1.3218 | 1.3185
Support Levels: 1.3050 | 1.2952 | 1.2877 | 1.2813

Intraday Analysis: The EURUSD formed a top at 1.3185 (R1) and as mentioned in yesterday’s analysis we expect the price to make a correction downwards and then to continue its upward move. We expect the price to test 1.3050 (S1) a strong technical support level for the intraday, and then to bounce upwards towards 1.3185 (R1). A break above the 1.3185 level would suggest a target of 1.3218 (R2). Look for long positions around our support levels targeting 1.3218 (R2).


GBPUSD 1.56865 / 1.56875
High: 1.56955 | Low: 1.56612 | Chg: -0.0002 -0.01%
SUMMARY: Up
INTRADAY TREND: Uptrend
MA10: Bearish
MA20: Bearish
STOCHASTIC: Neutral



Resistance Levels: 1.5894 | 1.5861 | 1.5775 | 1.5735
Support Levels: 1.5621 | 1.5552 | 1.5449 | 1.5407

Intraday Analysis: GBPUSD made a high at 1.5735 (R1) as it continued its move upwards (since January 13th). We expect the price to retest 1.5621 (S1) and then to bounce upwards towards our first resistance level of 1.5735 (R1). A break above that level will concentrate our focus on 1.5775 (R2) a technical and psychological level as it has been retested 3 times in the past (November and December of 2011) and is considered a strong resistance level.

 
USDJPY 77.130 / 77.134
High: 77.483 | Low: 76.897 | Chg: -0.315 -0.41%
SUMMARY: Down
INTRADAY TREND: Downtrend
MA10: Bearish
MA20: Bearish
STOCHASTIC: Neutral



Resistance Levels: 79.86 | 78.75 | 78.28 | 77.85
Support Levels: 76.87 | 76.54 | 76.06 | 75.54

Intraday Analysis: USDJPY made a sharp move downwards this morning and confirmed our recommendations for short positions and also for a continuation of the downtrend. We except the price to continue its downward move as it is under bearish pressure at the moment and it seems to be heading towards 76.54 (S2) and 76.06 (S3). A proper confirmation for the short positions will be when the price manages to break below the first support level of 76.87 (S1). A stop loss should be placed above 77.85(R1).

Source: FX Central Clearing Ltd, (http://www.fxcc.com)
URL: https://support.fxcc.com/email/technical/27012012