KEY DAY IN MAJOR PAIRS

Finally, the Dow lost ground in the beginning of the week by breaking the area’s 10,000 points yesterday, closing with losses of 1.04% up to 9909 units.

Finally, the Dow lost ground in the beginning of the week by breaking the area’s 10,000 points yesterday, closing with losses of 1.04% up to 9909 units.

Analysts found the major causes of the fears from the economic situation in some European countries, and the uncertainty of the financial sector before a likely rise in interest rates.

With the downturn of the session yesterday, would confirm the figure of a male head in that index Shoulder United States, leaving the door open to a deepening of the fall.

Tuesday note to observe European financial markets contribute to the area near opening after it is published from Germany the Consumer Price Index (CPI), with a score of 0.8% in the month of January compared to 0.9% last year according to the Federal Bureau of Statistics (DESTATIS).

Subsequently, the Germanic country reported a trade surplus of 136100 million in 2009, a decrease of 23.6% compared to 2008. The statement was the biggest decline since records began the annual statistics of foreign trade in 1950.

The European Central Bank (ECB) injected close to 78.800 million euro at the market in two refinancing operations at fixed rate of 1% through 79 financial institutions.

Euro – Dollar:

The climate of uncertainty and fears of closing last week, continued at the start of the second week of February, where markets showed further falls, and the dollar was again favored.

In trading against the euro on Monday we saw the pair fall in a close in the 1.3635 area, after showing movements back and forth for much of the day.

Tuesday we can see the couple making up positions at 1.3730, just a few points in the ratio of 38.2% Fibonacci applied to the final rally at 1.3755 bassist placement of the first resistance from the current value (see Graphic). Then continue to 1.3790, 1.3815, and 1.3860.

The contrast media will be 1.3700, 1.3660, 1.3620, and 1.3590.

Dollar – Franco:

Despite up positions on the closure of the session, we saw yesterday, this pair conclude the day in the sense bassist 1.0732 zone, after forming a minimum price 1.0680.

In this new day found the pair trading in the end zone yesterday with downtrend. Since the present value of congestion, placing a first support level 1.0645, then 1.0610, bullish channel in 4 hours (see graph), and 1.0570 levels are as follows stop to consider.

The resistors instead be 1.0705, 1.0745, 1.0770, and 1.0800.

Pound – Dollar:

As we start this new week we saw the cable to continue its downtrend for a minimum at 1.5533, exceeding the floor last week, and reaching areas from late May 2009.

In this new day we see a correction Tuesday’s bullish trading at 1.5626 par at the moment within a larger movement in rank in 4 hours charts in a zone extending from a low of yesterday to 1.5660 (23, 6% of the last bearish movement decline from 1.6067).

The main oscillators (RSI and Stochastics) give us bullish signals, which only confirmed a larger movement to be overcome the resistance level at 1.5660, then 1.5690, 1.5735, 1.5800 and continue as follows detention areas .

The contrast media will be 1.5590, 1.5536, 1.5460, and 1.5390.

Dollar – Yen:

Not much activity in the beginning of the week this pair closed the session with a bullish candle just 6 basis points at 89.35, giving up ground on closing day.

On this second day of the week we can see the pair trading in upward direction 89.70 at the moment, with signals over existing graphics. In weekly period we can see the formation of a Shoulder Head Shoulder inverted neck area has its line in 93.00, also price level where we find the monthly downtrend line (see Graphic).

Although it still be too early to confirm a possible change of direction, this figure is further supported by a double bottom in monthly training session, we could show in the near future a strong movement trend.

Today Tuesday for one, expect a continuation of the upward direction next resistance areas to consider in 90.05, 90.35, 90.70 and 91.10.

The brackets will be 89.10, 88.80, 88.50, and 88,20.

Facundo Molina is founder and director of MolFX - Management, a company fully specialized in Foreign Exchange Markets, with an important client portfolio through Capital Markets Services LLC (CMS). He has a BA Business Management at the Universidad Nacional del Sur (Argentina), where he has a doctorate degree based on the application of Fibonacci theory into financial markets. He also acts as professor of new and experiments traders.