Forex Market Updates & Commentary

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• USDJPY tests 100 day MA at 82.93
• Existing Home Sales/Leading Index/Philly Fed index come in much better than expected
• Forex Morning Report- Jan 20
• EURJPY tests KEY 100 day MA at 111.40
• Feds Fisher would not have been on board
• GBPUSD testing key technical level. Looking for a move away
• USDCHF moves above 100 hour MA at 0.9611
• USDJPY runs into important resistance at 82.73-75
• GBPUSD moves to test support at 1.5930-36
• Bobbys Corner-Open Market-Jan.20.2011
• Better data sends the EURUSD lower. 100 day MA tested
• Jobless claims better. Canada data better
• Gold moves toward key 100 day MA at $1350.50 area
• The NY Opening Forex Commentary is available for viewing
• US Jobless & Continuing Claims Due at 8:30AM

USDJPY tests 100 day MA at 82.93 Posted: 20 Jan 2011 07:15 AM PST The better US data has sent the USDJPY even higher and the pair is now testing the key 100 day MA at the 82.93 level. This level has been tested over a majority of the month. The move back to the level is another test. The trendline off the tops come in at 83.01 today.

Existing Home Sales/Leading Index/Philly Fed index come in much better than expected Posted: 20 Jan 2011 07:01 AM PST The US Existing Home Sales come out at 5.28M They were expecting 4.87M vs 4.68M last month. The supply of homes fell to 8.1 months from 9.5 Months. Much better than expected. Distressed home sales account for 36% of the sales. This is a 7 month high and good news for supply - if the pace can continue. If employment improves, more people will be in position to sop up the supply. Leading Indicators came in at 1.0 vs expectations of 0.6% Philadelphia Fed Index comes in at 19.3 vs expectations of 20.8 Employment rose to 17.6 from 4.3. Strong. New orders rose to 23.6 from 10.6. Strong. Overall this is a better report than what the Index shows The dollar has moved higher on the better data.

Forex Morning Report- Jan 20 Posted: 20 Jan 2011 06:50 AM PST Forex Morning Report- Jan 20

EURJPY tests KEY 100 day MA at 111.40 Posted: 20 Jan 2011 06:46 AM PST

Feds Fisher would not have been on board Posted: 20 Jan 2011 06:30 AM PST A news article in the Dallas Morning news says that Dallas Fed President would not have voted for QE2.  At the time he was not a voting member on the FOMC. He is now a member.  For the article click on the following link: http://www.dallasnews.com/business/headlines/20110119-fed's-fisher-talks-about-the-economy-fed-stimulus-and-the-need-for-monetary-policy-limits.ece

GBPUSD testing key technical level. Looking for a move away Posted: 20 Jan 2011 06:25 AM PST The GBPUSD is down testing key support at the trendline, 100 hour MA and the floor from a few days back.  Key technical level. Look for a move away from the pair.

USDCHF moves above 100 hour MA at 0.9611 Posted: 20 Jan 2011 06:13 AM PST The USDCHF has moved above key resistance at 0.9604 and 0.9611. The 0.9604 level was a key floor level over the last 12 trading days. HTe 0.9611 level is the 100 hour MA.  The 38.2% of the move down from the January high to the low has also been breached at 0.9620.  If the price can remain above the 0.9611 level, the bias is bullish with a move toward key resistance at 0.9651 where 200 hour MA and the 50% retracement is found.

USDJPY runs into important resistance at 82.73-75 Posted: 20 Jan 2011 06:03 AM PST The USDJPY has run into key ressitance at the 82.73-75 area.  This level corresponds to the 200 hour MA (green line), trendline resistance and the 50 Fibonacci retracement on the hourly chart.   Look for the level to solicit profit taking selling/intra day sellers. On the downside, if the bullish bias is to remain, look for support buyers against the 100 hour MA at the 82.49 level (blue line in the chart above).  If the price moves back below the 100 hour MA, all bets are off.  The market is not doing what it should be doing.

GBPUSD moves to test support at 1.5930-36 Posted: 20 Jan 2011 05:54 AM PST The GBPUSD has been more supported in the market of late as higher inflation and austerity package discipline has kept the currency boosted. The better US data has led to a move down to test the 100 hour MA at the 1.5934 level currently. The low near the close from Tuesday is also near the level at 1.5930.  This will be a key technical level today for the pair.  A break should solicit more selling, but look for initial buying on a test to hold.

Bobbys Corner-Open Market-Jan.20.2011 Posted: 20 Jan 2011 05:43 AM PST Good Morning: A busy overnight session-as equity and commodity markets fell as concerns that China’s continued growth may cause global interest rates to move higher.  Though investors are not looking at this as a instant threat-the concerns are there. Commodity currencies turned lower, on the heels of an overall decline in commodity prices    World equity markets are lower, which helped keep the USD and CHF firm-as investors head to the sidelines and await this morning’s US data. US Futures are following the trend-and are pointing to a lower opening this morning. Oil:$90.03                                                                  Gold:$1354.10   TIME FOR EST. PRIOR 8:30A.M. INITIAL JOBLESS CLAIMS 15-Jan 422K 445K 8:30A.M. CONTINUING CLAIMS 8-Jan 3985K 3879K 10:00A.M. EXISTING HOME SALES        DEC.      4.87M 4.68M 10:00A.M. EXISTING HOME SALES MoM DEC. 3.80% 5.60% 10:00A.M. LEADING INDICATORS DEC. 0.60% 1.10% 10:00A.M. PHILADELPHIA FED. JAN. 2O.4       24.3O HAVE A GREAT DAY & GOOD LUCK

Better data sends the EURUSD lower. 100 day MA tested Posted: 20 Jan 2011 05:42 AM PST The EURUSD broke through the trendline at the 1.3464 level and has moved down to test the key 100 day MA at the 1.3436. A break of the 1.3436 level and then the 1.3411 should solicit additonal selling pressure in the pair. Watch the 1.3436 level.

Jobless claims better. Canada data better Posted: 20 Jan 2011 05:32 AM PST Come down to 404K from 441k prior Canada Leading indicators come in at +0.5% vs +0.35 expectations Wholesale sales come in at +1.2% vs +0.3% All around better numbers. EURUSD has moved below the 1.3464 level. The USDJPY has moved higher on the news. USDCAD has moved down to test the 0.9977 support

Gold moves toward key 100 day MA at $1350.50 area Posted: 20 Jan 2011 05:14 AM PST Gold is coming under pressure and is moving toward the key 100 day MA at the 1350.50 level. A break would be the first time the price has been below the key technical level since August 2010 (blue line in the chart above). This is a significant technical level for Gold. Holding it, would be bullish for the precious metal. Breaking the level should lead to increased selling momentum.

The NY Opening Forex Commentary is available for viewing Posted: 20 Jan 2011 05:07 AM PST

US Jobless & Continuing Claims Due at 8:30AM Posted: 20 Jan 2011 04:30 AM PST

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