Forex Analysis

AUD/USD Analysis

Aussie traded with slight weakness amid abbreviated sessions in Australia and New Zealand today on Christmas Eve. Aussie-dollar started the day at $0.8934 and moved down to $0.8923,

The pair dominated an otherwise subdued Christmas Eve session today after it opened at Y104.10 following Monday’s holiday in Japan. Euro-yen meanwhile started near Y142.59 after a tight Y142.21 to Y142.73 range last night in the US.

USDCAD – bullish scenario still suggests near-term weakness to 1.0560

Today we are going to offer multiple scenarios for USDCAD and cover 3 different possibilities. The first wave count posits that waves-(1) to (3) from the September low are complete and

USDJPY – Wave-A of time consuming triangle began on Friday

The 104.60 has marked an important high (so far) in Yen and our analysis suggests that Friday’s reversal marked the end of wave-5 of (3). A wave-(4) correction is now expected to mark time in a sideways range between

EURUSD – small bull triangle targeting 1.3712 today…then still higher

The evidence in Euro is mounting against a trendline break as prices were able to hold the key 1.3622 support level last week. The rally so far is unfolding as a 5-wave impulse and targeting the key pivot zone at 1.3709.

EUR Mid-day Analysis

Although it appears to have put in a near-term floor with last Friday’s reversal, the Euro is having difficultywith building onto this morning’s modest early gains.

CHF Mid-day Analysis

Improving global risk sentiment has more than offset a decent rebound in a key private reading of SwissConsumption this morning, as the Swiss Franc is having problems with building on last Friday’s reversal.

JPY Mid-day Analysis

A Japanese market holiday is helping to keep the Yen in a fairly tight early trading range, but last Friday’sreversal from multi-year low should provide some near-term underlying support this morning.

USD Mid-day Analysis

While finding moderate early pressure and remaining well below Friday’s 2-week high, subdued preholidaytrading conditions are helping the Dollar generally hold its ground above both its 50-day moving averageand its recent lows this morning.

FX Daily

Today’s main release is US personal spending and core PCE inflation. Following robust retail sales in November, personal spending is expected to rise 0.5% m/m. As the PCE deflator is likely to rise only 0.1% m/m,

EUR/USD Analysis

The pair opened at $1.3675 in Asia this morning following a $1.3633 to $1.3709 range in the US on Friday. Euro-dollar slipped to an early $1.3668 low but got a lift from bids cited beneath $1.3650.

GBP/USD Analysis

The pair closed in NY Friday at $1.6330. The rate earlier pressed to $1.6316 after release of strong GDP data which showed the US economy had expanded faster than expected in Q3.