Reviewed Forex Trading

USD Dollar (USD) – The US Dollar weakened against the major currencies as Federal Reserve Chairman Ben S Bernanke said that the US jobs market is far from healthy. Additionally, the Greek government has made progress on measures to secure international aid, supporting a weaker Dollar. Wall Street closed positive as the S&P increased by 0.20% and the Dow Jones by 0.26% respectively. Crude oil rose by 1.60%, closing at $98.41 a barrel, Gold (XAU) strengthened by 1.40%, finishing at $1748.40 an ounce. No economic data is expected to be published.

Euro (EUR) – The Euro rose to its highest level in eight weeks against the Dollar as Greek officials worked on the final draft for the agreement on the budget for the second aid package. The EUR/USD’s momentum is positive above the 1.3200 level and as long as the pair is trading above this level the Euro may continue to rise and will probably break up at the next resistance level of 1.3320. The RSI indicator on the daily chart supports an uptrend. Overall, the EUR/USD traded with a low of 1.3089 and with a high of 1.3269. No major economic data is expected to be published.

EUR/USD – Last: 1.3243                

British Pound (GBP) – The Pound strengthened versus the Dollar following the news about Greece, boosting higher yielding assets and the GBP\USD’s momentum remains bullish above the 1.5860 level. The next resistance level on the daily chart is located at 1.6000 and breaking this level will probably cause the Pound to increase toward the 1.6040 level. Overall, the GBP/USD traded with a low of 1.5788 and with a high of 1.5904. No economic data is expected to be published.

GBP/USD – Last: 1.5891

Japanese Yen (JPY) – The Yen weakened against the major currencies as higher yielding currencies and Commodities closed higher, following optimistic news about Greece, causing the Yen to be negative. The USD/JPY’s momentum is bullish as long as the pair is trading above the 76.50 level and the next resistance level is located at 77.00. Overall, the USD/JPY traded with a low of 76.52 and with a high of 76.96. No major economic data is expected to be published.

USD/JPY-Last: 77.03

Canadian dollar (CAD) – The Canadian Dollar advanced versus the US Dollar as Commodities closed positive. In addition, the Building Permits came out better than expected at 11.1% vs. the 0.2% forecast, further boosting the currency.  As long as the pair is trading below the 1.0000 level, the US Dollar’s momentum is still negative. The next support level on the one hour chart is located at the 0.9920 level and breaking this level will probably cause the pair to decrease towards 0.9870. Overall, the USD/CAD traded with a low of 0.9940 and with a high of 0.9995. Today, the Housing Starts are expected to be at 193K vs. 200K previously.

USD/CAD – Last: 0.9955                                                                 

USD Dollar (USD) – The US Dollar finished mixed versus the majors, gaining versus the Yen and weakening versus the Pound and traded unchanged versus the Euro. The Dollar strengthened during part of the trading day as Greek bondholders failed to reach a settlement on the debt swap plan, which spurred demand for safety. Stocks ended mixed with the NASDAQ rising by 0.09% and the Dow Jones declining by -0.26%. Apple’s revenues which were reported after the end of the trading day beat estimates and could bring some positive momentum to tech stocks. Crude Oil declined by -0.44% closing at $99.14. Gold (XAU) declined by -0.80% closing at $1,664.90 an ounce. Today, Pending Home Sales are expected with -0.6% versus 7.3% previously. Crude Oil Inventories are expected with 0.9M versus -3.4M previously. All eyes will be on the FOMC Interest Rate Statement later in the day. The FOMC is expected to leave the rate unchanged at 0.25%.

Euro (EUR) – The Euro finished unchanged versus the Dollar after Greek bond talks broke down, although investors didn’t appear surprised or alarmed. The S&P threatened to declare Greece in technical default, which is a first for an EU member state since 1999, when the Euro was first introduced. Stock exchanges in Europe finished lower, the DAX30 declined by 0.27% and the CAC40 by -0.47%. The EUR/USD is currently considered bullish as long as it remains above the 1.2950 support level. The pair still faces many resistance levels around 1.31. Today, the German Ifo Business Climate is expected with 107.6 versus 107.2 previously. ECB President Draghi will speak at the World Economic Forum in Davos.

EUR/USD – Last: 1.3030

British Pound (GBP) – The British Pound gained versus the Dollar and most other majors after the Budget Gap narrowed more than forecast. Public Sector Net Borrowing came out better with 10.8B versus the 12.4B expected. The BOE governor, King, said that current lower inflation gives room for policy makers to increase bond purchases in order to aid the UK economy. The FTSE 100 declined by -0.53% to 5,751.90. The GBP/USD continues to be bullish as long as it is above the 1.5550 support level. The pair is facing strong resistance around the 1.57 and 1.5750 levels. Today, investors await the MPC Meeting Minutes release to assess the possibility of a wider QE program. The Prelim GDP is expected with -0.1% versus 0.6% previously. BBA Mortgage approvals are expected with 35.3K versus 34.7K previously.

GBP/USD – Last: 1.5620 

Japanese Yen (JPY) – The Yen finished lower versus all 16 majors after the BOJ cut its economic growth forecast for next year. Helping the weakness of the Yen were better than expected Services and Manufacturing economic releases in the EU and a smaller than expected budget deficit in the UK, which lowered demand for the safe haven of the Yen. Technically, the USD/JPY broke above the trading channel it had between the 76.60 and 77.30 levels. The pair faces a strong resistance level at 78.20. No major economic data is expected today.

USD/JPY – Last: 77.60

Canadian Dollar (CAD) – The Canadian Dollar weakened versus the US Dollar after retail sales showed a slowing in growth and Crude Oil prices declined. The USD/CAD is on a downtrend with a strong support level around 1.0075. Today, the BOC governor Carney will speak at the world economic forum, in Davos.

USD/CAD – Last: 1.0095