KEY DAY IN MAJOR PAIRS

In a journey with twists and turns in the markets, we see the Dow end the session with gains of 1.4%, and regaining the 10,000 points. Reliance on aid from Europe that will provide several European countries to Greece to meet its debt has been one of the reasons behind the moves.

In a journey with twists and turns in the markets, we see the Dow end the session with gains of 1.4%, and regaining the 10,000 points. Reliance on aid from Europe that will provide several European countries to Greece to meet its debt has been one of the reasons behind the moves.

Both France and Germany, they enroll as candidates to head the Greek aid to the country, which needs to issue debt for about 55,000 million during the current year to meet their payments.

Further information on the decision to meet us at the conclusion of the summit of heads of state of the European Union, which begins tomorrow Thursday 11 February in Brussels.

On the other hand, it is important to note that there was a lower volume traded in markets, with consequent erratic movements as consequences of increased volatility in certain times of day.

The oil recovered in closing positions yesterday with a price of $ 73.75 a barrel, an increase of 2.58% on the price of the day Monday.

Today Wednesday, the Bank of England governor Mervyn King warned that the UK recovery will be slower, which does not preclude further action to help economic recovery. Furthermore, he mentioned that interest rates soon be back up again.

Earlier, it published the report of production of manufactured goods from the British Isles with a number higher than estimated.

After the closing rally on Wall Street, and news about the aid to Greece, we see the trading in European markets rise, led by the FTSE traded with gains above 2%, then follow the DAX, CAC, and FTSE.

Euro – Dollar:

The euro recovered positions on the downward correction in the dollar yesterday as markets showed increases in their contributions. That was how we saw this couple having peaked in the 1.3845 area traveling more than 200 points in the day.

From that area, very close to the ratio of 61.8% Fibo, and under the trendline on daily charts which is guiding the movement (see Graphic). We see a rebound until the end zone.

Wednesday we see the pair continued trading at 1.3766 to the closing movement of yesterday, resuming the downward direction greater. The price level of 1.3735 support will be the first to consider, then 1.3705, 1.3660, and 1.3630.

Resistance from those found in present value 1.3790, 1.3820, 1.3850, and 1.3885.

Dollar – Franco:

We saw yesterday in this pair to fall below the reporting limit upward channel we observe in the session of 4 hours 1.0605, a level of price it offered for the arrest and rebound until closing time (See Figure ) Today, Wednesday we see the pair again try to overcome bottlenecks that zone where we find the limit, bouncing a second time without being able to break it.

The pair traded at this time in the 1.0650 area, with signs upside resistance levels will be considered in 1.0680, 1.0710, 1.0750, and 1.0790.

The supports traces at 1.0610, 1.0570, 1.0540. And 1.0505.

Pound – Dollar:

The euro recovered positions on the downward correction in the dollar yesterday as markets showed increases in their contributions. That was how we saw this couple having peaked in the 1.3845 area traveling more than 200 points in the day.

From that area, very close to the ratio of 61.8% Fibo, and under the trendline on daily charts which is guiding the movement (see Graphic). We see a rebound until the end zone.

Wednesday we see the pair continued trading at 1.3766 to the closing movement of yesterday, resuming the downward direction greater. The price level of 1.3735 support will be the first to consider, then 1.3705, 1.3660, and 1.3630.

Resistance from those found in present value 1.3790, 1.3820, 1.3850, and 1.3885.

Dollar – Franco:

We saw yesterday in this pair to fall below the reporting limit upward channel we observe in the session of 4 hours 1.0605, a level of price it offered for the arrest and rebound until closing time (See Figure ) Today, Wednesday we see the pair again try to overcome bottlenecks that zone where we find the limit, bouncing a second time without being able to break it.

The pair traded at this time in the 1.0650 area, with signs upside resistance levels will be considered in 1.0680, 1.0710, 1.0750, and 1.0790.

The supports traces at 1.0610, 1.0570, 1.0540. And 1.0505.

Pound – Dollar:

The cable was not immune to the decline of the dollar in Tuesday’s session, where they recovered some ground by way of profit taking on a larger trend in the zone of 1.5770 (23.6% of the retreat of the last movement bass), forming the pull back towards turning the area surpassed the previous week, which supports the lateral movement from the month of June 2009.

In this new day, and after the data known from the economic calendar along with the words of the BoE Governor, we envision the pair de140 dropping more points so far.

In 4 hours charts, we see the pair trading below a trendline that guide the last directional movement (see Graphic). Since the current value at 1.5620, we find as following target areas to be considered at 1.5555, 1.5510, and 1.5460.

The resistors are however in 1.5680, 1.5730, 1.5770, and 1.5850.

Dollar – Yen:

The yen (no clash this time his movement against the other major), gave way Tuesday to the recovery of the U.S. currency. With only 50 pips for a minimum-maximum graphics in the 89.75 area.

In this new day we see the pair in bearish direction, bouncing in the area of psychological resistance at 90.00, with about 40 pips from the same routes.

Despite the couple last fall, are in force in direction slight bullish signals. The area of maximum support will be the first to consider, then find the following areas as 90.30, 90.65 and 91.05.

The contrast media will be 89.30, 88.95, 88.60, 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.