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Daily Forex Technical Report

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Daily Forex Technical Report − Quiet Start to the Week

Mon, Jan 22 2007, 08:35 GMT
by ActionForex.com Team

ActionForex.com

Forex Daily Technical Report

Quiet Start to the Week

The forex markets start the week in quiet manner with dollar hovering at 4 year high against the Japanese yen. Elsewhere, markets remain bounded in tight ranges. Dec German PPI was flat mom, with yoy growth slowed to 4.4%. Released earlier, UK rightmove house prices increased 0.5% mom, 13.5% yoy in Jan. Dec Swiss combined PPI was flat with yoy growth at 2.6%, below expectation. Market reactions were muted. Chicago Fed Survey and Dec Leading indicator will be released in the US session but are not expected to stimulate much movements in the market.

Australian PPI moderated to 0.2% qoq growth with yoy increased slowed to 3.5% in Q4. The deceleration in was due to mainly a decline in prices of imported commodities and a slowdown in the price increases of domestically produced commodities. Market's focus will be on Wed's CPI for clues on whether RBA will raise rate in Feb.

Read full report (EUR/USD, GBP/USD, USD/CHF, USD/JPY) here.

USD/CHF

Daily Pivots: (S1) 1.2441; (P) 1.2485; (R1) 1.2522; More.

USD/CHF continues to engage in choppy sideway trading between 1.2415 and 1.2546 today. As discussed before, even though price actions from 1.2528 could be developing in to extended sideway consolidation, further rise is still mildly in favor as long as USD/CHF stays above 1.2415 support.

However, upside momentum remains unconvincing at this moment with 4 hours MACD trending down. Below 1.2415 support will suggest a short term top is formed and encourage further pull back to 38.2% retracement of 1.2111 to 1.2546 at 1.2380. But downside should be contained by 1.2270 cluster support (61.8% retracement of 1.2111 to 1.2546 at 1.2276) and bring further rally.

In the bigger picture, decisive break of 1.2501/72 resistance zone (100% projection of 1.1878 to 1.2268 from 1.2111 at 1.2501 and medium term falling trend line resistance from 1.3238 to 1.2768, now at 1.2572) will indicate whole medium term down trend from 1.3283 has already completed at 1.1878. Further rally should be seen towards 1.2768 cluster resistance (61.8% retracement of 1.3283 to 1.1878 at 1.2746). On the downside, sustained break of 1.2270 cluster support will suggest that the whole rise from 1.1878 has possibly completed and put focus back to 1.2110 support. Break will shift focus back to the downside for 1.1878 low.

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Published on  Mon, Jan 22 2007, 08:34 GMT