Forecast for 10th December 2014 GENERAL OVERVIEW The euro edged higher against the dollar on Wednesday, but investors remained nervous over an uncertain political situation in Greece and some looked to sell into any bounce in the single currency. The euro was up 0.15 percent against the dollar at $1.2390 , having fallen to $1.2365 earlier in European trade after Greek bond yields rose. It stayed well below a high of $1.2448 struck on Tuesday as investors trimmed long dollar positions, booking profits ahead of the year-end. The euro was down 0.35 percent against the yen at 147.60 yen . The Greek government has brought forward to next week a presidential vote that will force nearly two dozen independent lawmakers to decide whether to side with Prime Minister Antonis Samaras pro-bailout cabinet or with leftist radicals who have vowed to tear up the bailout. The decision prompted the steepest daily fall in Greek stocks on Tuesday in more than a quarter century and a jump in bond yields. Some investors and speculators have taken the opportunity to place fresh bets against the euro, which has shed nearly 10 percent against the dollar this year. On Thursday, the ECB conducts its second targeted long-term refinancing operation. Over time, expectations have been decreasing to as low as 130 billion euros in the latest Reuters poll, substantially missing volumes desired by the ECB. The ECB had intended to expand its balance sheet sharply by offering these cheap loans to banks and flooding the system with euros, driving down the value of the common currency. The dollar fell 0.5 percent against the yen to trade at 119.10. At one point on Tuesday, it dropped more than 2 percent to 117.90 in a vicious turnaround from a seven-year peak of 121.86 set on Monday. Technical Details: USD/CHF: Pair is trading below resistance at 0.978 and should remain bearish below that level to test support at 0.972 and 0.969 Trading above 0.978 should start bullish move to test resistance at 0.980 and 0.985 Major Trend: Weak/Up Key Support/Resistance Level: 0.978 Price Action Alert: Bearish Correction USD/JPY: Price trading slightly below 119.50 and should start bullish wave above that level to test resistance at 120.12 and 120.60 trading below 119.50 would start a bearish move to support zone at 119.00 and 118.13 Major Trend: Up Key Support/Resistance Level: 119.50 Price Action Alert: Price Oversold GBP/USD: Price trading above support 1.552 and should start a bullish wave above that level to test resistance at 1.561 and 1.573 trading below 1.552 should continue the down trend to test support zone at 1.548 and 1.540 Major Trend: Weak/Down Key Support/Resistance Level: 1.552 Price Action Alert: Possible Bullish Reversal EUR/USD: Price reached support at 1.234 and should start a bullish wave above that level to test resistance at 1.239 and 1.245 falling below 1.234 should start a bearish trend to test support at 1.230 and 1.225 Major Trend: Weak/Down Key Support/Resistance Level: 1.234 Price Action Alert: Price Oversold AUD/USD: Price reached support at 0.820 and should start a bullish wave to test resistance at 0.831 and 0.835 trading below 0.820 should keep price bearish to test support at 0.816 and 0.810 Major Trend: Down Key Support/Resistance Level: 0.820 Price Action Alert: Price Oversold Conclusion: Persistent fears over the health of the global economic recovery and mixed economic reports from US and European zones are keeping markets in unstable conditions. Trading major assets, short term, with strict money management is highly recommended. Important Economic News: No Important News/Reports Today
Posted on: Wed, 10 Dec 2014 18:52:57 +0000
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