Good morning from cloudy Hamburg and welcome to our first Daily FX Report this week. Growing concerns of a global slowdown caused mainly by the apparently widen European debt crisis shocked investors and capital markets.
But anyways, we hope you had a relaxing weekend and wish you much success in trading today.
The USD benefited from the disappointed investors in view of the apparently unstoppable European debt crisis which is increasingly widened to the largest economies. In addition, the expected declining investor confidence of Germany put the EUR even more under pressure and enhanced the negative expectations of the capital markets. As a result, the demand for so-called safe-haven assets boosted and according to a Bloomberg median estimates survey among leading market experts, the estimates of the European Economic Research Index related to the German economy were reduced to 55.8 in December, which is the lowest forecast since October 2008. This development encourages rising concerns of an impending recession of the whole Euro-Zone and a spreading debt crisis on the largest European economies which will probably lead to a slowdown of the global economic growth. Thereby the announcement of further bond sales of France and Italy did not give any positive impulses to the market, while the statement of European Council from the 9th of December regarding a future annual deficit brake of 0.5 percent of the nominal gross domestic product should calm down the fears and uncertainty of the investors. Therefore the EUR weakened against almost of its 16 most traded currency peers and lost 0.3 percent to 1.3347 against the USD. Versus the JPY, the EUR dropped 0.2 percent to 103.65, while the USD reminded nearly unchanged at 77.65 towards the JPY.
Besides to the EUR, the AUD declined against its most traded counterparts, too, as a released government report of the trade surplus has been significantly lower than expected. The AUDslid 0.4 percent against the USD to 1.0179 from 1.0219 the day before and lost 0.3 percent to 79.04 versus the JPY. Also the NZD declined against USD and JPY. Versus the USD, the NZD lost 0.4 percent and traded at 0.7724. The JPY gained 0.4 percent and climbed to 59.98 against the NZD.
Daily Technical Analysis - Our Focus Currencies for Today
As we can see on the chart, after having dropped below the former support level around 1.38475, the EUR/USD currency pair was falling to the support level around 1.32215 where it experienced demand and recovered to the resistance level around 1.35546 among entering the upper channel of bearish Fibonacci fan. Currently, the rate is trading above the strong support level around 1.33329 again and has additionally weakened along the middle Bollinger band. As the OsMA is bearish as well, we might see falls below the next support level around 1.33329 to the lower Bollinger band.
Intraday Support & Resistance (4 Hours)
After rebounding at the support level around 57.043 on 23th of November, the NZD/JPY has left its bearish Andrew’s pitchfork and entered a bullish movement above an upward Fibonacci fan. A failed break through the resistance level around 60.973 of the pair was followed by a quick downward runaway to the support level around 59.290 before strengthening again. The DeMarker is indicating an oversold market, which dampens the probability of a successful bullish attempt to the hurdle around 60.973. A break through should lead to further gains.
Intraday Support & Resistance (4 Hours)
Source http://www.fxstreet.com/technical/analysis-reports/da/2011-12-12.html
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