The common European currency inched lower today as the Japanese economy showed a more than expected Current Account surplus (0.48T act./0.52T est.).
EUR/USD pierced the daily forecast mean at 1.2715 and went higher on more-than expected Italian Industrial Month-on-Month Production (0.3% act./-0.2% est.) and French CPI M/M (0.4% act./02.% est.).
The daily market forecast mean at 0.9490 has been pierced as the pair recovered on more than expected inventories, paring early weekly losses.
The Japanese yen strengthened today as the EU debt woes continue to worry investors. The daily forecast mean at 76.95 has been approached.
The bearish mood took over the British national currency today against the American dollar after the UK balance shrank more than expected (-8.6B/-83B est.); the daily target at 1.5478 was breached today.
The single European commenced a decline today versus the Japanese on downward revise of the final GDP (0.1% vs. 0.2% estimate), causing the daily market participants' target (98.19) to be pierced.
EUR/USD pierced the daily forecast mean at 1.2777 and moved lower on announcement that the EU parliament objected the recent EU financial treaty.
In case a key support at 0.9450 continues to repel USD/CHF, the currency couple will be perceived as bullish in the long run. While being en route toward 0.9775/84 the pair will encounter resistances at 0.9572 and 0.9595.
Being that the currency pair's movement is limited by strong levels from above and below, current bias is neutral. Resistances are at 77.43/47, 77.83 and 78.23, while dips will be halted at 76.60, 76.20 and 75.94.
After testing a strong support level situated at 1.5363/47, the Cable is likely to bounce off it and advance. Nonetheless, the rally is unlikely to penetrate through both resistances at 1.5698 (55 day ma) and 1.5721.
EUR/JPY currency pair should be capped for now by resistances located at 98.45, 99.45 and 100.77. Supports, however, may be found at 97.82, 97.28 and 96.15. Within the next three months the price is expected to drop down to 95.00/94.92.
Succeeding a recovery up to 1.2820/60 or 1.2974, the pair should recommence falling. The mid-term bearish outlook is thus likely to remain until 1.2530/88 is reached. Longer term target lies even lower, at 1.2083 (200 month ma).
The 0.9517 mark remained intact today and the pair crossed the 0.9500 level after the resignation of the SNB chairman.
USD/JPY remained flat today, piercing the market mean at 76.86 despite the emptying wholesale inventories in the US.
The British national currency continued yesterday's rally as annual BRC Retail Sales Monitor rose 2.2% comparing to '10 decline (-1.6%), touching the daily target at 1.5547.
The Euro added to gains on Tuesday, leaving the daily market participants' target at 97.92 intact as EU leaders agreed to come up with the EU Financial pact till January 30.
EUR/USD recovered after touching the daily forecast mean at 1.2747 after French Industrial M/M Production rose more than expected 1.1% vs. estimate 0.1%).
Bearish momentum strengthens and is expected to drag the price down to 0.9450. The latter level has little chance withstanding the pressure and should allow for a dip lower, down to 0.9407 or 0.9337/17.
Since USD/JPY is surrounded by tough levels it is anticipated to continue fluctuating within a narrow range. Resistances are located at 77.89, 78.76 (200 day ma) and 80.00. Dips on the other hand should be limited by supports at 76.60, 76.22 and 75.94.
The Cable has stabilised near a solid support located at 1.5345 and now is expected to commence inching higher, although resistances at 1.5671, 1.5717 and 1.5739 might hamper the upward movement.
Even though EUR/JPY presently recovers, this rally is unlikely to extend beyond 99.69 or 100.77. The overall outlook is bearish, as the currency pair targets 94.92 in the longer term, while supports at 97.90 and 95.90/40 will have to be dealt with first.
Current rally is seen as temporary, however, it is likely to extend up to 1.2820/60 or even 1.2995. Nonetheless, the long-term perspective remains bearish - the initial target is at 1.2530/88 while the pair is heading toward 1.2083/88.
The daily market forecast mean at 0.9546 has been successfully left behind as the Chairman of the SNB, Philipp Hildebrand, resigned.
The pair eased today and moved below the 77.00 mark as investors remain cautious regarding the latest macroeconomic data, released on Friday. The daily forecast at 77.05 remained intact today.