Technical Analysis

Technical Analysis
EUR/USD
"Rising geopolitical risks are causing people to buy the dollar and sell stocks"
- Sumitomo Trust & Banking Co. (based on Bloomberg)
Bearish movement of EUR/USD seems to be decelerating while the pair is approaching a support level at 1.2860. However, this level is unlikely to provide sufficient support and therefore is expected to be eventually breached and pave the way to reaching 1.2089.

EUR/JPY
"More integration and more effective instruments are needed. We are not yet there"
- Vittorio Grilli, Italian Deputy Economy Minister (based on Reuters)
EUR/JPY currency couple is heading toward 100.77 at the moment. In case this support is violated, the next target lies at 99.92. Rallies are expected to be capped by resistances located at 103.04, 104.73 and 105.72.

GBP/USD
"Looking ahead, both the level of sterling and developments in the rest of the world are likely to be crucial to the United Kingdom's trade performance"
- BOE report (based on WSJ)
The pair has successfully bounced off 1.5443/20 and is currently recovering, although resistances situated at 1.5562 and 1.5744 might impede its further advancement. The weekly outlook thus remains neutral.

USD/JPY
"Risk proxies are selling off, and forex is taking the lead from equities markets"
- Royal Bank of Canada (based on Reuters)
USD/JPY is facing a number of strong resistances located above, but nevertheless is expected to surge while breaking through 78.14/47, 79.08 and 80.00. Dips are to be limited by supports at 77.29, 77.27/13 and 76.22.

USD/CHF
"As we enter 2012, neither gold nor the Swiss franc retains a safe haven status"
- UBS Wealth Management (based on Bloomberg)
Following a contraction which should be halted by 0.9300 USD/CHF is likely to carry on moving upwards while encountering resistances at 0.9548 and 0.9572, as the long-term target is situated at 0.9776/84.