KEY DAY IN MAJOR PAIRS

Bed Bernanke’s words on the possibility that the institution he presides discount rate hike in the short term impact on the markets during the day yesterday.

Bed Bernanke’s words on the possibility that the institution he presides discount rate hike in the short term impact on the markets during the day yesterday.

The principal American centers, Dow Jones and NASDAQ, reversed its downtrend on the closure concluding with moderate losses of 0.2% the first, and 0.14% in the second.

In his speech before the congress, the president of the Federal Reserve reported that assesses the possibility of decreasing the monetary base as the first decision to phase out economic stimulus measures.

From the economic calendar was known as relevant data the trade balance of the United States with a deficit which rose to 40200 million in the month of December, exceeding expectations, and increasing the deficit the previous month.

On the other hand, continues to weigh the situation in countries of southern Europe and in particular the case of Greece. Thursday’s voice was known in the European Union president, Herman Van Rompuy, which has agreed to assist the country during the Greek summit. France and Germany will be in charge of leading it.

The ECB reported in its monthly meeting that provides a slight increase in unemployment, slowing the recovery of the economy according to the information arising from its monthly bulletin of February.

The foreign exchange market shows price range determined by their majors, pending requests for unemployment to be known in a few hours in the United States.

Euro – Dollar:

This pair resumed the downward direction higher yesterday after hitting three times the peak area corrected to 1.3815 where it closed in the 1.3730 area.
Thursday observed the pair moving back and forth in a defined price range below the daily trendline (see Graphic). Minors in graphs we can observe the formation of a figure of reversal of DT which we indicate a new downward movement if passed the first support at 1.3701 today.

Passed the first level of congestion, placing a target following areas of 1.3660, 1.3620, and 1.3590.

The resistors instead be 1.3755, 1.3790, 1.3815, and 1.3845.

Dollar – Franco:

This pair finished the session yesterday with a rally, despite a significant retreat from its peak level at 1.0715, closing the session at 1.0675.
As we see in 4 hours charts, the pair maintains its upward direction within a channel more coming guiding its movement (see Graphic). We envision the formation of a triple floor in the lower channel boundary, where the price bounces back to current 1.0680. The neck line of that figure, and will be mounting the first support at 1.0700, where we expect an upward extension of detention following areas with intermediate 1.0745, 1.0775, and 1.0805.

The supports will be 1.0655, 1.0620 (lower limit of the channel at the moment), then 1.0590 and 1.0555.

Pound – Dollar:

The British Pound fell about 200 pips in yesterday against the U.S. currency, then respect the congestion zone referred to 1.5770 we find not only 23.6% of the last tour bassist, but is the lower limit lateralization of the area held by the movement of the pair since June 2009.

At this time we can see the couple making up positions since reaching the minimum price at 1.0560 yesterday, the first level of support to resume today if the prevailing bearish direction. Will overcome the same 1.5510, 1.5460, and 1.5390.

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

Dollar – Yen:

This pair showed yesterday in his fourth consecutive day of gains as a result of the stronger dollar against the yen. Despite this recovery, we note that the pair remains bearish speed, and require the break important resistance levels to confirm a trend change.

Today Thursday, then closing the Asian session, we found the yen trading at 89.63 right now trading inside a triangle in meeting time, in a bearish channel 4 hour time frame (see Graphic).

At 89.40 we find the lower leg of the triangle, price level, first area that will provide support to a more bearish movement. After 89.05, 88.80 and 88.50 are the next media to consider.

The change will be resistance at 89.85, 90.10, 90.35 (upper limit of the channel), and 90.80.

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.