The Euro continued its rally towards playing bass price levels

The Euro continued its rally towards playing bass price levels not seen since mid-2009, after learning the Gross Domestic Product data in the Euro Zone with a slowdown of 0.1% in the fourth quarter last year

The Euro continued its rally towards playing bass price levels not seen since mid-2009, after learning the Gross Domestic Product data in the Euro Zone with a slowdown of 0.1% in the fourth quarter last year, marking a decline of 2.1% in annual terms.

As reported by the EU statistics office (Eurostats), the economy suffered a contraction Euro total of 4% during 2009.

Among the differences experienced by member countries, which are being followed closely by the market, it is important to mention that at the close of last week was also known figure of the GDP of Germany to fourth quarter last year without changes, compared with expected growth of 0.2%.

From the U.S., we saw on Wall Street finished mixed, with the Dow giving up 0.44% to 10,099 points while the Nasdaq Composite Index finished with gains of 0.19%.

Among the most relevant data were published known business inventories with an unexpected drop by analysts in the month of December of 0.2%, breaking the upward trend held in the two publications in the preceding months.

Subsequently, the consumer confidence data developed by the University of Michigan showed a larger drop than expected to 73.7 points in the month of February, up from 75 expected by analysts.

Monday look to Asian markets start week with a slight downtrend, with the Nikkei closing at -0,78%. The reasons lie in the operators are tightening up the rules of the Chinese banking sector (on Friday the central bank of China announced a further increase in bank reserves to curb credit expansion and speculative bubbles).

Furthermore, it was learned that Japan grew 1.1% in the fourth quarter of last year, and 4.6% per year measured between October and December.

Euro – Dollar:

After a bullish double attempt, this pair continued their downward trend last week below a trendline that is guiding the movement on daily charts (see Graphic).

With a new bassist rally, the European currency touched its minimum price the 1.3530 area during the European morning on Friday, trading level not seen since the month of June last year.

Today Monday, public holiday in the U.S. and China which means a lower volume operations, observing this pair trading in 1.3615 or less unchanged since the opening week.

The first level of resistance to consider before a larger correction from 1.3642 should find him on par, then 1.3685, 1.3710, and 1.3735. The media however continued to a further direction will be 1.3575, 1.3530, 1.3500, and 1.3465.

Dollar – Franco:

This pair continued its upward direction at the close of the previous week, forming a new high 1.0824, resistance level bounced respected until its closure.
Monday we see this pair moving back and forth in a given area. In 4 hours charts are forming a triangle that would imply a larger trend in motion if exceeded its upper leg (see Graphic). The same is found at 1.0800, then continue following objectives as 1.0825, 1.0855, and 1.0890.

The contrast media will be 1.0750, 1.0720, 1.0690, and 1.0665.

Pound – Dollar:

The weakness of the pound against the dollar continues to trend, although trading in recent days in a price range determined by way of profit-taking movement after overcoming the strong area of support (now resistance) at 1.5770.
According to what we see in this graphic on Monday in 4 hours, the wire oscillates in ranks within a symmetrical triangle below the trendline that is guiding the movement (see Graphic).

If completed at the break of 1.5555, where we found the lower limit of the figure on accelerated training would see downward movement with close detention areas to consider in 1.5500, 1.5460, and 1.5390. Since the current price at 1.5660, placing a stop at 1.5600 first.

The resistors will be 1.5700, 1.5770, 1.5860, and 1.5910.

Dollar – Yen:

With an upward motion to the upper limit of the channel that is guiding the movement in minor graphics, we saw this on Friday, hitting a pair in the 90.30 area, where retreated to their closure.
Without major changes in this new day, despite the data coming from the Japanese economic calendar, we see this couple listed on 90.00. In weekly charts but we can see the formation of a Shoulder Head Shoulder figure invested (see chart), which would give us indications of a bullish scenario to consider in the coming weeks to break your neck line.

Going to the analysis set for today, we found minor graphical bearish signals with areas of detention from the current price at 89.70, 89.45, 89.15 and 88.80. The 90.30 level is the zone turning to an extension of the movement in upward direction, which would break the channel said. Then follow 90.55, 90.80 and 91.10 as following resistance levels to consider.

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.