KEY DAY IN MAJOR PAIRS

The communication from rescue to Greece by President of the European Union, Herman Van Rompuy, at the hands of France and Germany was well received by Wall Street markets closed higher, with the Dow Jones up 1.05% , and 1.38% in NASDAQ.

The communication from rescue to Greece by President of the European Union, Herman Van Rompuy, at the hands of France and Germany was well received by Wall Street markets closed higher, with the Dow Jones up 1.05% , and 1.38% in NASDAQ.

Despite the upward movement after the news, it is noteworthy that the volume does not go with the overall direction, suggesting that not strengthen the livelihoods of buyer sentiment.

In this closing week we saw the Nikkei close the session with a gain of 1.28% again surpassing the 10,000 points, after they knew the European Union’s decision to support Greece.

Since the Euro Area, became known this morning, the fourth-quarter GDP figures showed Germany unchanged, amid expectations of growth that analysts estimated. For its part, France reported that its gross domestic product grew 0.6% in the fourth quarter last year.

Available data for this new day of the European bloc showed slowing rise in the fourth quarter with a rise of 0.1%, while in annual terms experienced a decline of 2.1%. Then the figure of Industrial Production fell 1.7% in the month of December, while the collapse of all EU countries was 1.9%.

The market is awaiting the publication of retail sales data from the U.S., which is expected to increase. Then data will be released Business Inventories and Consumer Sentiment from the University of Michigan as to take into account data regarding their impact on the market.

Euro – Dollar:

Influenced by European Union decisions on the decision aid to Greece, this pair fell back in yesterday because of the uncertainty that runs through the economic situation of several countries that make up the block.

After falling to 1.3590 zone runs almost 200 pips, the pair recovered to log positions above 1.3680.

Today, Friday we see the pair fall deeply surpassing its minimum area yesterday, and forming a new soil known 1.3530 after the data of GDP of the Euro Zone which marks a decrease rate of recovery.

From a technical standpoint, we find the pair in a clear downtrend, exceeding daily support areas of importance. The minimum area of today will be the first to win support 1.3530, then 1.3490 and 1.3460 are the following objectives.

Resistances are 1.3600, 1.3640 (38.2% of the decline in the last bearish movement), 1.3890 and 1.3735.

Dollar – Franco:

With 155 runs after bouncing pips in the area where we find the lower limit of the bullish channel on three occasions, the pair formed its peak of 1.0784 yesterday, surpassing the trendline in minor graphics, a level from which accelerated the movement.

Despite back on closing session yesterday with a significant movement of more than 90 pips, today we see a new upward movement that has formed a new peak at 1.0825.

We note the Swiss franc trading on the moment at the 1.0785 area making up positions in a corrective move against the trend higher (see Graphic).

At 1.0810 we find the first obstacle bullish, then 1.0835, 1.0860, and 1.0890 are the following levels of objectives. The contrast media will be 1.0750, 1.0715, 1.0680, and 1.0655.

Pound – Dollar:

The cable was recovered yesterday in the rebound in the congestion zone of 1.5555, and along 160 pips to its maximum.

However in this last day of the week can be seen in 4 hours charts couple swinging in a symmetrical triangle below a trendline is greater than guiding the movement (see Graphic).

Since the current value at 1.5615, we expect a continuation of the downward direction with first support at 1.5570 to consider where we find the lower leg of the figure, if confirmed the break will give us an extension of the movement with following objectives in 1.5500, 1.5460, and 1.5390.

The resistors instead be 1.5680, 1.5730, 1.5770, and 1.5830.

Dollar – Yen:

Yesterday we saw the Yen up ground against the dollar, after 4 days of falls, to the 89.60 area which formed its maximum (minimum daily charts).
Today Friday, and then ended the Asian session, we find the couple making up positions in a bearish channel guiding the movement coming in 4 hours charts (see Graphic).

In this figure also observe the formation of a Shoulder Head Shoulder invested indicating a probable change in trend if exceeded its neck line that currently found in the 92.80 area.

Exceeded the upper limit of that figure, we see a continuation of the movement. After the break in the 90.35 area, will continue as next targets 90.70, 91.20 and 91.90.

The supports are 89.80, 89.55, 89.30 and 89.00.

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.