FOREX TRADING

Very little to report from overnight activity as there was little to speak of. I can only imagine everyone was watching Madonna lip sync at the half time show. Of note however was the fact that risk opened Asia with a gap lower and has since then spent most of

The euphoria from Friday’s US payrolls number that propelled risk higher has faded today as Greece takes centre stage. The technocratic government led by Lucas Papademos is trying to convince the three main political parties that more austerity is needed. A statement late last night said that an agreement between

Euro zone retail sales declined unexpectedly in December, said the European Union’s statistics office Eurostat on Friday. Retail sales fell 0.4 per cent from November after declining by the same amount in October.

In the short-term EUR/USD is likely to slide down to 1.3250/80. A close below this support would encourage further bearish action, which may last up until 1.3000. On the other hand, should 1.3250/80 withstand, the pair will commence recovering and return back to 1.3435.

On Friday Pound/Dollar decreased with 110 pips. The Cable depreciated from 1.5861 to 1.5749 on Friday, in converse with the positive Interbank sentiment at almost +35%, closing the week at 1.5804. Today the British Pound is soft, but moving still at the lower end of Friday’s range for the time

On Friday, the payrolls triggered an interesting reaction on the currency market. The strong US labour market report supported the dollar and not risk sensitive currencies like the euro. This weekend, uncertainty on the Greek debt talks is pushing EUR/USD closer toward the first significant support level.

After the European Commissioners have recorded only sluggish progress in implementing the assumed reforms and austerity measures as part of the European rescue fund, the European heads increased the pressure on the Greece government. Recently, the international lenders demanded increasingly for fixed terms to avoid a bankruptcy of the nation.

Friday’s US employment data was extremely encouraging, with the headline non-farm payrolls coming in much stronger than expected at 243k (compared to consensus estimates looking for 140k), and the unemployment rate unexpectedly dropping to 8.3% from 8.5% prior. The release led to a short-term uptick in risk sentiment characterized by

The combination of an overstretched record short EUR position and the recent announcment by the FED regarding (low) interest rates and the potential for QE3 triggered a round a long dollar liquidation in the week to last Tuesday.

Another week of Greek debt-swap talks is coming ahead after the failure of the Greek government and private sector bondholders to reach an agreement over the size of losses and interest on new loans last week.

Continues to move within 1.3025/1.3200 range, after repeated failure to reclaim previous peak at 1.3232. Near-term tone is showing the downside pressure, as the pair opened with gap lower and continues to move lower. Break below initial support and higher base at 1.3085/65, now looks for test of next levels

EURUSD Wednesday’s dip was bought with buyers emerging close to 1.3050, half the net gains from the preceding week (1.2878-1.3223). Although follow through gains were not strong enough to produce a positive weekly performance, the rejection of this level combined with the weekly Morning Star formation still intact (a

The euro appeared weaker against its major counterparts as markets open with Greece running out of time to meet international demands for more austerity. Various reports are suggesting that Greek leaders have been given until noon, to decide on how to react to Troika’s demands ,however this time is different.

Dollar-Swiss was ranged this week between 0.9100-9250. The 21-Month-MA (currently at 0.9261) is holding well. While below this Resistance level, we see a threat on the charts of seeing a fall to 0.8800. Support is seen at 0.9075 and a strong break below this Support level would trigger this fall.

The pair has moved bearishly since the opening of the week where it came below SMA 50 over four-hour interval as seen on the secondary image. Over daily studies, the negativity continued appearing on Stochastic and OsMA and thus; the bearishness is still expected during this week. A break below