fresno cormorant: Forex Technical & Market Analysis: February 04 2013

MARKET OVERVIEW

2013-02-04 04:08 GMT

Spanish PM faces calls to resign; scandal to destabilize Europe?s calm waters?

Spanish Prime Minister Mariano Rajoy continues to face growing criticism after the scandal which hit his party earlier last week, in which allegations were made about illegal payments received by himself and what appear to be a very large list of members from the party he presides. As it is logical on the political circus, it only took a few days until the main Socialist opposition party asked the Prime Minister to step down. As Bloomberg reports, citing opposition leader Alfredo Perez Rubalcaba during a press conference on Sunday, only a day after Rajoy also made a public appearance to remain still on denial: Rubalcaba: ?Rajoy should resign to make way for another prime minister who can re-establish the strength, credibility and stability that Spain needs,? ?Spain needs a strong, credible, and trustworthy government.?

The data unveiled by the top selling Spanish newspaper El Pais over alleged illegal donations to key political figures such as Rajoy has sparkled a very tense environment. The numbers published by El Pais show payments over an 11-year period to Mariano Rajoy worth around 25,000 euros each year from a private fund set up by Barcenas, former PP Treasure and main person accused in the scandal. From Bloomberg: ?In a recession of this magnitude, the worst thing that can happen to the Spanish economy is a political scandal,? said Jose Carlos Diez, chief economist at Intermoney SA in Madrid. ?This is a theme that is going to be in the spotlight for a while and could undermine investor confidence if not addressed quickly.?-FXstreet.com

Forex Economic Calendar

2013-02-04 09:30 GMT | United Kingdom. PMI Construction (Jan)
2013-02-04 09:30 GMT | E.M.U. Sentix Investor Confidence (Feb)
2013-02-04 10:00 GMT | E.M.U. Producer Price Index (YoY) (Dec)
2013-02-04 15:00 GMT | United States. Factory Orders (MoM) (Dec)

Forex News

2013-02-04 05:33 GMT | EUR/USD ? How long till loyal buyers take it to 1.38/1.40?
2013-02-04 04:12 GMT | AUD/JPY stalls ahead of fresh 4-year highs below 97.00
2013-02-04 02:53 GMT | EUR/AUD retreats from 1.3117 session highs
2013-02-04 01:35 GMT | GBP/NZD prints historic lows below 1.8550

AUDUSD	NZDUSD	USDCHF	USDCAD	GBPJPY	EURCHF	GOLD	SILVER
1.04348/358	0.84617/628	0.90859/870	0.99725/735	145.405/419	1.23812/823	1671.35/.63	31.81/.84

TECHNICAL ANALYSIS

EURUSD

HIGH: 1.36596 | LOW: 1.36185 | BID: 1.36232 | ASK: 1.36239 | CHANGE: -0.12% | TIME: 08:47:36

OUTLOOK SUMMARY: Up
TREND CONDITION: Downward penetration
TRADERS SENTIMENT: Bearish
IMPLIED VOLATILITY: Low

MARKET ANALYSIS ? Intraday Analysis
Upwards scenario: EURUSD bounced back after the last week appreciation however stabilization above the next resistance level at 1.3641 (R1) might provide market with sufficient bullish power to attack next targets at 1.3658 (R2) and 1.3676 (R3). Downwards scenario: At the moment pair is trading on the negative territory and break through support level at 1.3615 (S1) is likely scenario for today en route towards to our intraday targets at 1.3597 (S2) and 1.3580 (S3).

Resistance Levels: 1.3641, 1.3658, 1.3676
Support Levels: 1.3615, 1.3597, 1.3580

GBPUSD

HIGH: 1.57101 | LOW: 1.56905 | BID: 1.56979 | ASK: 1.56990 | CHANGE: 0.01% | TIME: 08:47:37

OUTLOOK SUMMARY: Down
TREND CONDITION: Down trend
TRADERS SENTIMENT: Bullish
IMPLIED VOLATILITY: Low

Upwards scenario: Pair has settled negative bias on the hourly timeframe but recently moved in sideways mode. Above the resistance level at 1.5725 (R1) is possible retracement development. Violation here might expose next intraday targets at 1.5742 (R2) and 1.5758 (R3). Downwards scenario: Friday?s losses are pointing to a negative market sentiment. Breach of our key support level at 1.5686 (S1) might trigger further downside expansion towards to our next targets at 1.5670 (S2) and 1.5654 (S3).

Resistance Levels: 1.5725, 1.5742, 1.5758
Support Levels: 1.5686, 1.5670, 1.5654

USDJPY

HIGH: 92.9 | LOW: 92.491 | BID: 92.609 | ASK: 92.614 | CHANGE: -0.25% | TIME: 08:47:38

OUTLOOK SUMMARY: Up
TREND CONDITION: Up trend
TRADERS SENTIMENT: Bullish
IMPLIED VOLATILITY: Low

Upwards scenario: USDJPY maintained upside rally and currently remains stable above the 20 SMA. Further price appreciation is limited to the next resistance level at 92.82 (R1). Only clear break here would suggest next intraday targets above the local peak at 92.98 (R2) and higher one at 93.13 (R3). Downwards scenario: On the other side, price depreciation below the 20 SMA and clearance of our next support level at 92.48 (S1) might provide sufficient space for the recovery formation, targeting 92.29 (R2) and 92.10 (R3).

Resistance Levels: 92.82, 92.98, 93.13
Support Levels: 92.48, 92.29, 92.10

Prepared/Published By FXCC Forex Trading Blog.

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