EUR/USD – Side-ways move in last 3 sessions suggests the price would move inside the range of 1.3017-1.3120. On the downside, a daily close below 1.3017 would yield re-test of 1.2945. On the upside, above 1.3130/40 would extend gains toward 1.3199.
GBP/USD – Rise from 1.5580 suggests price is likely to move sideways in tandem with euro in next few days. On the upside, only break of resistance at 1.5775/79 would confirm fall from 1.6167 has made a low at 1.5408 yield gain toward 1.5877. A daily close below 1.5500 would strongly suggest downtrend from 1.6167 has resumed and bring re-test of 1.5408.
USD/JPY – Pullback from 78.23 suggests upmove from 77.13 has made a temporary top there and consolidation is envisaged initially today. But as long as support area at 77.62/69 holds, bullish bias remains for a re-test of daily pivotal resistance at 78.29 and daily close above would extend gains toward 78.45.
USD/CHF – Rebound from last week’s low at 0.9245 to 0.9400 suggests consolidation is in store and price is expected to gyrate inside a 0.9245-0.9400 range in the last few trading days of 2011. On
the upside, above 0.9400 would extend gains to 0.9433, but resistance at 0.9491 should remain intact.
EUR/JPY – Retreat from last week’s high at 102.55 suggests rebound from December’s low at 101.05 has ended and consolidation with downside bias remains for weakness to 101.66. Below there would yield another fall to 101.45 but December’s low would remain intact.
AUD/USD – The rate has edged higher to $1.0161 vs $1.0157 early Sydney but trades remain thin. Traders expect the currency to remain range-bound ahead of key risk event this week which is Italian debt auction on Thursday. The auction results will determine if the EURO manages to hold above the $1.3000 level and thus will have a bearing on risk currencies like the AUD and NZD.
EasyForexNews Research Team