Dollar rode on intensified credit concern in the Eurozone and optimistic tone of FOMC statement to extend recent rebound broadly. Technically, EUR/USD dropped further away from the 55 days EMA which is inline with the view of medium term reversal.

EUR/USD's fall from 1.5143 extended further to as low as 1.4261 last week and the development is inline with the view that is has topped out in medium term already. Initial bias remains on the downside this week and further

USD/JPY strengthens last week even though path was choppy. The break of 90.75 resistance suggests that whole rise fro 84.81 is resuming. Initial bias iwll remian on the upside. Break of near term channel resistance (now at 91.11) will target

GBP/USD's decline resumed after brief recovery and reached as low as 1.6049. Initial bias remains on the downside this week and GBP/USD should target 100% projection of 1.6720 to 1.6166 from 1.6408 at 1.5854 first and then 1.5706 cluster support

USD/CHF's rally extended further to as high as 1.0506 last week but formed a short term top there on bearish divergence conditions in 4 hours MACD. Initial bias is mildly on the downside this week and some pull back could

AUD/USD dived to as low as 0.8809 last week before recovery mildly. The strong break of 0.8915/45 support zone confirms that a medium term top is already in place at 0.9404. With 4 hours MACD crossed above signal line, some

USD/CAD's choppy rise from 1.0405 extends to 1.0744 last week and the break of near term falling trend line argues that consolidations from 1.0851 has completed already. However, this was not confirmed by a break 1.0748 resistance yet. With 4

EUR/CHF dropped sharply to as low as 1.4905 last week and the strong break of 1.5007 support dampens our bullish view. Instead, it opens up the bearish case that whole fall from 1.5880 is still in progress. Initial bias remains

EUR/GBP falls sharply to as low as 0.8850 last week and the development indicates that correction from 0.9410 is still in progress. With 4 hours MACD crossed above signal line, some sideway trading might be seen initially this week. Nevertheless,

EUR/JPY dropped to as low as 127.50 last week but was supported above 126.88 and recovered strongly. Initial bias will remain neutral this week and some sideway trading could be seen. But still, another fall is in favor as long

GBP/JPY's recovery extended further to as high as 146.89 last week. But after all, it's still limited by 147.43 resistance and we're holding on to the bearish view. That is, choppy recovery from 141.99 is treated as correction to fall

Sunday, Dec 20, 2009 Dec 21, 2009 Dec 22, 2009 Dec 23, 2008 Dec 24, 2009 Dec 25, 2009

The dollar traded mixed on Friday following one of the best weeks for the year. The greenback rose against the euro, pound and yen but consolidated gains against the Swiss franc, aussie and loonie. A strengthening US economic recovery, European

Trading volumes and data were light this week as markets wound down ahead of the holidays. In the US, the November housing starts and building permits data bounced back from the softness seen in October. The FOMC kept interest rates

Highlights Cautious on further USD upside, but JPY may play catch-up Fed wearing rose-colored glasses again Cable likely to reflect the weight of poor sterling fundamentals Key data and events to watch next week Cautious on further USD upside, but

Undeniably, the Fed's decisive action and leadership has been instrumental in bringing the U.S. - and by extension - other economies around the world back from the brink. While actual interest-rate slashing and the unveiling of quantitative easing programs were

Recovery Continues: Jump in Fourth Quarter GDP Economic recovery continues with gains this week reported in industrial production, housing starts and leading indicators. There was, however, a bit of a cautionary breeze coming from an inflationary direction. Our anticipated inventory

Financial market review - foreign exchange The US dollar was the star performer of the week once again as the DXY dollar index reached its highest level since September and registered its third consecutive weekly gain. Sterling outperformed against the

Although cable retreated after intra-day rebound to 1.6250, break of 1.6110 minor support is needed to signal decline from 1.6879 has resumed and bring retest of yesterday’s low at 1.6080, break there would extend weakness towards 1.6000, however, loss of

Dollar’s retreat after rising to 1.0509 yesterday suggests further consolidation below there would take place and correction to 1.0345 is likely, however, reckon the Ichimoku cloud top (now at 1.0284) would limit downside and bring another rally. Above said resistance