The euro drops ahead of the European Finance Ministers meeting.Asian and European trading sessions:
Euro: Growing concerns over the Euro-Zone crises spreading pressured the euro on Monday. Therefore, the euro lost its reached maximums during the previous week. Market participants did not expect any support for the euro from the results of the European Finance Ministers in Brussels. Germany was against increasing of the size of the fund assistance to the EU crises victims.
As a result, the EUR/USD pair dropped to $1.3240.
British Pound: The sterling was supported by the expectations for the strong UK fundamentals, planned for Tuesday. The Consumer price index is forecasted to grow to 3.4%, and the Retail price index is expected to get as high as 4.8%. As a result, the GBP/USD rate hit the $1.5955 maximum.
Japanese Yen: The USD/JPY pair traded in the range of Y83.00 – Y82.30.
Canadian Dollar: Canadian dollar rate is waiting for the direction from the Bank of Canada interest rate decision, which is planned for Tuesday and forecasted at 1.00%. Last week the Canadian dollar grew against the greenback.
Australian Dollar: The flood continued to render substantial pressure on the Australian dollar.
American trading session:
US financial markets were closed on Monday due to the celebration of the Martin Luther King Day.
Technical analysis for 18/01
The pair is trading below Moving Averages (200 and 100) it may lead pair to decline to 1.31674.
Resistance: 1.33143, 1.34882, 1.35984
Support: 1.31674, 1.30277, 1.28630
The pair has broken 1.58543 and aiming to 1.60322. Support is at 1.58543.
Resistance: 1.60322, 1.62050, 1.63316
Support: 1.58543, 1.56722, 1.54842
The pair may trade between 0.98114 and 0.96574. If the pair breaks 0.96574 the pair will decline to 0.95699.
Resistance: 0.98114, 0.99202, 1.00168
Support: 0.96574, 0.95125, 0.93435
The pair’s resistance is 83.933. Support is 82.219. If the pair breaks 82.219 the will decline to 81.399.
Resistance: 83.065, 83.933, 84.866
Support: 82.219, 81.399, 80.438
If 0.98436 is broken the pair will decline to 0.97423.
Resistance: 1.00067, 1.00907, 1.01744
Support: 0.99207, 0.98436, 0.97424