Euro Slows Down Ahead of Spanish Debt Sales
Last Updated on Tuesday, 17 April 2012 03:09 Written by FxTT Analysis Department Tuesday, 17 April 2012 03:09
EUR/USD:
EUR/USD climbed yesterday as the current amount of liquidity seems sufficient to cover funding needs in Italy and Spain, at least for now. EUR/USD rose and tested 1.3150 resistance after buyers stepped in at 1.2990-1.3000 zone. Despite worries about Spain’s budget deficit and better than expected U.S. retail sales data, 1.30 level remained as a strong support for now but the question is how long. To the upside there are bunch of resistance levels, 100-day moving average sits at 1.3133, weekly resistance at 1.3179 and 50-day moving average at 1.3211. If the pair can break and hold above 1.3150, it is possible to see these levels today. If price reverses from these 1.3150, expect to see support at 1.3102, 1.3066 and 1.3030. Today investors’ focus will be on ZEW Economic Sentiment, ECB President Mario Draghi’s press conference and Spanish bond yields (the country is scheduled to sell as much as €3 billion of 12-month and 18-month bills today, 2-year and 10-year bonds on Thursday).
GBP/USD:
GBP/USD gains were capped at 1.5900 resistance as usual. After Friday’s sell off the pair found support at 50-day moving average yesterday. The pair traded as low as 1.5818 during yesterday’s Asian session. In order to continue climbing, the pair has to break and hold above 1.5910 level. If the bulls can penetrate this level, look for 1.5948, 1.6011 and 1.6055. If the bears successfully defend 1.5910-27 area and push the pair down, expect to see support at 1.5880, 1.5842 and 1.5800. There are two main events which will affect the pair on the fundamental level; CPI figures (today) and the MPC minutes (tomorrow).
USD/CHF:
The pair reversed after it failed to break 0.9250 resistance. It is quite possible that the pair will continue its bearish tendencies if it can’t climb above 0.9200. To the downside there will be support at weekly level 0.9114, 0.9090. To the upside, the Bulls may be hindered by the weekly pivot which sits at 0.9165. If the pair can climb above this level, look for 0.9200 and 0.9250.
USD/JPY:
USD/JPY continues to sink slowly. The recent price action shows that the pair may consolidate between 81.20 and 80.00 this week. However, if the bears manage to take the reigns, there will be support at 79.65 and 79.11. If the bulls win the battle and the pair breaks above 81.20, expect to see resistance at 81.54 and 81.90.
