Euro Weakened on Juncker Comments as Consolidation Extends Euro failed to break through this week's high of 1.3233 against dollar as consolidations extend. Markets are getting cautious ahead of tomorrow's job data. Meanwhile, investors' are disappointed by the lack of progress in Greece debt swap deal. In addition, the common currency is weighed down by comments from Luxembourg Prime Minster Juncker, who's also the leader of Eurozone finance ministers. Juncker firstly noted that the debt crisis measures adopted in the last summit were "largely insufficient". Juncker urged EU leaders to take further steps in the next summit in March. Meanwhile, he also said that debt swap talks with Greece were very "ultra difficult". Full Report Here...
Featured Technical Report
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.3049; (P) 1.3134 (R1) 1.3241; More. EUR/USD failed to break through 1.3233 resistance and dipped again today as consolidation continues. Intraday bias remains neutral for the moment. Sustained break of 38.2% retracement of 1.4246 to 1.2625 at 1.3244 will resume the rebound from 1.2625 and target 61.8% retracement at 1.3627. On the downside, break of 1.2931 minor support will suggest that corrective rise from 1.2625 was already finished and the larger decline from 1.4939 is likely resuming for a new low below 1.2625. Read more... EURUSD Technical Outlook USDJPY Technical Outlook GBPUSD Technical Outlook USDCHF Technical Outlook USDCAD Technical Outlook AUDUSD Technical Outlook EURJPY Technical Outlook EURGBP Technical Outlook EURCHF Technical Outlook GBPJPY Technical Outlook

Special Reports

2012 Forecast: AUD Boosted By Speculations Over Fed's QE3 In The Near-Term The dovish January FOMC statement thrilled investors and boosted higher-yield currencies. Australian dollar was one of the beneficiaries. AUD soared against USD after the Fed pushed back the first expected rate hike to late-2014, from mid-2013 as projected in previous statements. Moreover, renewed speculations on QE3 have boosted AUD as well as other cyclical currencies. Australian dollar is expected to rise further in the near-term amid rising likelihood of monetary easing. In the medium- term, AUD will likely trade sub-parity against the USD but upside risks remain there for the commodity currency and any accommodative policy from China should help push the currency higher. Read more...

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GMT Ccy Events Actual Consensus Previous Revised 23:50 JPY Monetary Base Y/Y Jan 15.00% 14.60% 13.50% 00:30 AUD Building Approvals M/M Dec -1.00% 2.00% 8.40% 10.10% 00:30 AUD Trade Balance (AUD) Dec 1.71B 1.23B 1.38B 1.34B 07:00 CHF Trade Balance (CHF) Dec 2.07B 2.85B 3.00B 2.95B 09:30 GBP PMI Construction Jan 51.4 52.5 53.2 10:00 EUR Eurozone PPIM/M Dec -0.20% -0.10% 0.20% 10:00 EUR Eurozone PPIY/Y Dec 4.30% 4.30% 5.30% 5.40% 12:30 USD Challenger Job Cuts Y/Y Jan 38.90% 30.60% 13:30 USD Non-Farm Productivity Q4 P 0.70% 1.00% 2.30% 13:30 USD Unit Labor Costs Q4 P 1.20% 0.90% -2.50% 13:30 USD Initial Jobless Claims 367K 375K 377K 379K 15:30 USD Natural Gas Storage -129B -192B
Orders and Options Watch
US Session: Orders and Options Watch EUR: The single currency slipped in European session in part due to negative comments from Juncker regarding steps to tackle sovereign debt crisis being largely insufficient, stops at 1.3150 and 1.3100-10 were triggered but bids are still noted at 1.3070 and 1.3050 with more stops reported below latter level as well as 1.3020. On the upside, offers are now noted at 1.3150 and 1.3180-90 with stops building up above 1.3200, followed by mixture of offers and stops located at 1.3230-40 with more stops placed above option barrier at 1.3250. Further choppy trading within 1.3026-1.3233 range would take place ahead of Bernanke's testimony before House budget committee. Read more...
Forex Trade Ideas
Trade Idea Update: GBP/USD – Sell at 1.5910 Although yesterday’s rally to 1.5884 signals recent upmove from 1.5234 low is still in progress and further gain to 1.5900-10 would be seen, however, loss of near term upward momentum should prevent sharp move beyond 1.5940-50 (50% projection of 1.5321-1.5798 measuring from 1.5701) and bring retracement of recent upmove. Below previous resistance at 1.5798 would bring test of the Ichimoku cloud top (now at 1.5749) Read more... Trade Idea: EUR/JPY – Hold long entered at 99.60 Despite yesterday’s fall to 99.25, as the single currency found support there and rebounded to 100.70, retaining our near term bullishness and as long as said support holds, prospect of another rebound remains and above 100.88 resistance would signal the retreat from 102.21 has ended and bring a stronger rebound to 101.40-50, Looking ahead, a break of resistance at 102.21 is needed to extend the rise from 97.04 low (wave v bottom) for major correction of recent decline in wave (iv) to 102.50-55 Read more... Candlesticks Intraday Trade Ideas Update Schedule (GMT): 1st Update: 0630 - 0700; 2nd Update: 0930 - 1000; 3rd Update: 1230 - 1300; 4th Update: 1500 - 1530 Pairs Covered: EUR/USD, USD/JPY, GBP/USD, USD/CHF Elliott Wave Daily Trade Ideas Update Schedule (GMT): AUD/USD, EUR/JPY: 0800 - 0830; EUR/GBP, USD/CAD: 1430 - 1500
Suggested Readings
Fundamental Highlights EUR Stunted by Juncker Comments, Final Greek Deal Elusive Eurozone PMI Manufacturing Points To Stall In Q1 2012 Global PMIs Spark Optimisms Over Growth Glass Half-Full Argument: Positive Risk Sentiment Continues Euro Profits From 'Buy Europe' Rally, But No Clear Break Yet Technical Highlights EUR/GBP Confirming Bearish Continuation From Wedge Breakout AUD/JPY Testing Resolve of Broken Double Bottom FX Thoughts for the Day EURUSD - Biased To The Upside Nearer Term But Continues To Consolidate