| USDCHF approaches 38.2% retracement of the move up Posted: 29 Dec 2011 07:13 AM PST 
The USDCHF has tested the 38.2% of the move up from yesterdays low. That level comes in at 0.9411 and the price low has come in at 0.9414. The price is back up off the level, suggesting that the downside correction may be over. Longer term the low from yesterday tested the upward sloping trendline and keeps the bullishness in tact for the pair. 
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| Better home sales give the EURUSD the push above the 1.2916 level. Posted: 29 Dec 2011 07:06 AM PST 
The better than expected US Pending Home Sales have pushed the EURUSD up further. The next target is the 1.2940/42 which is the close from yesterday and the 38.2% of the move down from yesterday’s high. The high for the day is also near this level. I would expect sellers against this level on the first test. |
| US Pending Home Sales Better Than Expectations Posted: 29 Dec 2011 07:00 AM PST Pending Home Sales (MoM): Survey: 1.5% Actual: 7.3% Prior: 10.4% Sept vs Aug 2011
Seasonally Adjusted(MoM%)
U.S: 7.3% vs 10.4%
Northeast: 8.1% vs 17.7%
Midwest: 3.3% vs 24.1%
South: 4.3% vs 8.6%
West: 14.9% vs -0.3% Level Change
U.S: 6.8 vs 8.8
Northeast: 5.8 vs 10.7
Midwest: 2.9 vs 17.2
South: 4.3 vs 7.9
West: 15.7 vs -0.3 Pending Home Sales (YoY): Actual: 6.9% Prior: 7.3% |
| EURUSD tests resistance at 1.2916 area Posted: 29 Dec 2011 06:49 AM PST 
The EURUSD has wandered higher as the morning session continues. The pair is currently testing the upside trendline on the hourly chart at the 1.2916 level. This is a parellel trendline off the connection of the lows. The level is also equal to the 200 bar MA on the 5 minute chart (green line in the chart above). The level is causing some pause in the buying seen in the NY session on the back of the failure to extend further on the break of the 2011 low at 1.2873. If the price extends above the level, there should be more buying with the next target being the close from yesterday at the 1.2940 level. This is also near the 38.2% of the move down from yesterday (at 1.2942) 
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| US Chicago Purchasing Manager 62.5 vs Survey of 61.0, Number Same as Prior Month Posted: 29 Dec 2011 06:46 AM PST Prices paid higher, Production lower, New Orders Lower, Employment Higher. |
| Gold breaks LONG term trendline today Posted: 29 Dec 2011 06:15 AM PST 
Gold continued its fall today, breaking below a long term trendline that extends from the October 2008 low and connects to the July 2010 low. The break came in at the 1547.92 level today. Staying below this trendline keeps the long term bearishness in tact for the pair. On the shorter term 5 minute chart, the price fall today took the pair to the lowest level since July 2011 (low reached 1522.55. The price has corrected off that low to the 38.2% of the move down today. There has been some selling against that level and this keeps the bearish bias on the precious metal today. The dip buyers have to prove they can move the price above this intraday resistance level. Sellers will test the “will” of the buyers and likely stop themselves out on a break above. That level comes in at 1537.38. 
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| GBPUSD tests intraday resistance Posted: 29 Dec 2011 06:00 AM PST 
The GBPUSD has moved up quickly in NY trade but is testingn intraday resistance at the 1.5425-30 area. The 100 bar MA, the 61.8% of the days range, the orginal low from earlier today are all congested at the area. This should slow the move higher for the time being. A break above starts to target the close from yesterday. |
| EURUSD finding some profit takers Posted: 29 Dec 2011 05:42 AM PST 
The EURUSD has broken above intraday trendline and the 38.2% retracement at the 1.2889 area. This came after some up and down trading in the early NY session during which a new 2011 low was made (below the 1.2873 level). The 100 bar MA on the 5 minute chart is the next upside target for the pair at the 1.2909 currently. This is near the 61.8% of the days range. The action today is more balanced. The price trend did continue in London morning trading but the inability to keep the price below the low for 2011, seemed to have scared some shorts and we are seeing more dip buying in the early NY session. Traders will be watching the 1.2886-89 level in early trading and also the 1.2873 level to see if buyers continue to support the dips. |
| Bobbys Corner-Open Market-December.29.2011 Posted: 29 Dec 2011 05:31 AM PST  Good Morning:
After being on holiday for over a week-the headlines have not changed. Europe in crisis, US economy barely showing signs of life, political problems persist in the Middle East etc. FX markets were a bit softer after results from Italy’s 10 year bond auction. Italy was able to sell about 7 Billion euro worth of 10 year bonds just below the key 7% yield. Even with investors fears regarding Europe’s debt crisis-it seems that Italy is still able to finanace their debt through the open bond market-even though the yield’s continue to climb. With concerns mounting that the ECB will add more cash to the financial sector-the euro fell to a 15 month low against the USD. The ECB has elected to take this course-as they work hard to avoid a credit crunch. Jobless claims came in at 381K. Equity markets are higher as are US Futures. HAVE A GREAT DAY & GOOD LUCK |
| US Jobless Claims Climb Higher Posted: 29 Dec 2011 05:30 AM PST Jobless Claims: Survey: 375K Actual: 381K Prior: 364K Revised: 366K Continuing Claims: Survey: 3600K Actual: 3601K Prior: 3546K Revised: 3567K EUR/USD Trading Higher on the news. |
| FXDD Morning Commentary for Dec 29th 201 Posted: 29 Dec 2011 05:21 AM PST |
| The NY Morning Review and Preview for December 29th Posted: 29 Dec 2011 04:55 AM PST |
| US Jobless Claims & Continuing Claims Data Due at 8:30AM Posted: 29 Dec 2011 04:15 AM PST |
| Risk aversion in the market Posted: 29 Dec 2011 03:38 AM PST European equities are relatively flat and DOW futures are down 140 points. We’ve seen the risk pairs trade off and the dollar trade on session highs against most of the majors. In the case of the GBP/USD, the pair broke daily support around 1.54214 and support on the 15 minute chart at 1.54258. 
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| ECB’s Nowotony says Euro is a secure currency, inflation will fall. Posted: 29 Dec 2011 03:15 AM PST - Euro has proven itself as a currency.
- It is a secure, reliable currency.
- Debt break is needed for Austria.
- New bank measures will be implemented.
- Price stability remains ECB’s main target.
- Sees inflation receding in 2012 and 2013.
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