Free Forex overview 2012/01/16(london and New york session)

Technical Analysis

EUR
"In this sort of environment it does not take much to knock the euro, it is in an extremely vulnerable position"
- Rabobank (based on Reuters)
The outlook for EUR/USD will remain negative as long as a cluster of resistances at 1.2913/20 (downtrend and 20 day ma) stays in place. Currently the pair is moving toward 1.2530/88, while a long-term target is 1.2083 (200 month ma).

USD
"The Greek situation is quite dire. If they don’t reach some sort of agreement by the end of next week, they may very likely be forced in to a hard default"
- Forex.com (based on Bloomberg)
EUR/JPY has declined down to new 11-year lows. While being capped by a formidable resistance located at 98.75/80 the bias will be bearish for the pair, which in turn is expected to fall to 94.90, through supports at 96.15 and 95.90/40.

GBP
"We think the BoE will do more quantitative easing in February and that will weigh on bullishness in sterling"
- RBS (based on Reuters)
After a short-term weakness, GBP/USD currency couple has managed to form a base ahead of support at 1.5272. Additional support is provided by a key level located at 1.5145. Rallies are unlikely to be able to extend beyond 1.5408 and 1.5500.

CHF
"Strong November data [from Japan] comes as a relief, bolstering confidence in the expansionary capex trend"
- Societe Generale SA (based on Bloomberg)
TBeing that USD/JPY was rather calm the preceding week, it is now expected to attempt to pierce through 77.69 o nce more. Subsequent resistances are at 78.59 (200 day ma) and 79.56 (55 week ma). Supports may be found at 76.60 and 76.52.

JPY

"The inflation outlook provides the Fed with some wiggle room. While growth remains uneven, manufacturing activity has been resilient"
- State Street Global Markets LLC (based on Bloomberg)
USD/CHF has finished its downward corrective move and is now expected to commence advancing, being supported by a strong level at 0.9364/17. At first the pair is anticipated to reach 0.9595, while being en route to 0.9774 in the longer term.