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[IMAGE] Forums Discuss these points in the Forums: Forexnews Forum T= echnicals Live Charts Analysis available from: Cornelius Luca J.P. Chorek= Technical Research Ltd. Charts & News featuring Standard & Poor's = Interest Rates US: Japan: Eurozone: UK: Switzerland: 1.75% 0.15% 3.= 25% 4.0% 1.25-2.25% [IMAGE] =09 [IMAGE] European Traders Stuff Sto= cking With USD, Not EUR For Xmas December 24, 7:00 AM: EUR/$..0.8804 $/JPY= ..129.82 GBP/$..1.4357 $/CHF..1.6707 European Traders Stuff Stocking With = USD, Not EUR For Xmas by Jes Black No Key Data; Federal Holiday A steady = flow of buy orders in thin holiday trade pushed USD higher following an ini= tial sell off in Asian trade. USD/JPY rose above its opening level to a new= high 3-year high of 129.87 in quiet European trade. JPY was also weak agai= nst the euro, but it held more than two yen above Friday's 2-year low at 11= 6.65 per euro. Meanwhile, EUR/USD edged below Friday's close at 88.67 to a = 2-week low of 87.78 as traders cut exposure to the single currency ahead of= the Christmas holiday. The euro's slide picked up speed in late European = trade and plunged to a 2-week low of 87.78 cents, down almost one cent on t= he day. EUR/USD also fell further below 88.75, which marked the upper bound= of the descending channel resistance of the move from its September high o= f 93.26. This is a bearish signal and indicates that like the pound, the Eu= ropean currencies' brief 2-week break of their downtrends vs the dollar may= come to a close. EUR/USD also fell below 88.42 which marked the 50% Fibona= cci retracement of the move from 83.50 to 93.26. Next support is seen at 87= .50. Moreover, USD/CHF soared to a day's high of 1.6708 despite speculatio= n that the Swiss franc could be a safe haven over the holidays. Rediscovere= d optimism in the dollar reversed the Swiss franc's rise to last week's hig= h of 1.6280 as safe-haven flows were seen boosting CHF. Last week saw money= flow out of emerging markets following the announcement Argentina's debt c= risis, which fed fears of default. However, Argentina's debt default and th= e possibility of further terrorist attacks in the coming week failed to muc= h of a positive effect on the franc which held steady against the euro arou= nd 1.4690. USD/CHF resistance is seen at1.6680. Support stands at 1.6550, 1= .6585 and 1.6465. No economic releases are scheduled for today or tomorrow= , but the key economic news for the US this week includes November durable = goods orders, Redbook retail average, Jobless claims and Consumer confidenc= e. From the Eurozone, major economic due for release include French PPI, Fr= ance's INSEE industry survey, Italy's labor force survey, Euro area balance= of payments, Euro area M3, French unemployment rate. From Japan there is i= ndustrial production, retail sales, CPI, household consumption and unemploy= ment data. Last week's US data showed a series of better than expected dat= a, which rekindled optimism that the US economy was showing signs of recove= ry. Supporting the dollar was the third consecutive rise in the University = of Michigan Consumer Sentiment survey to 88.8 in the final December reading= from the preliminary 85.8. The dollar had risen against the major currenci= es due to better-than-expected US jobless claims and Philadelphia Fed surve= y that sparked hope of a turnaround in the US economy. This contrasted with= lower than expected data from the Eurozone and the Bank of Japan's seventh= straight month of lowering their assessment of the economy. Recovering fai= th in the US was enough to render the downward revision of Q3 GDP to 1.3% a= mute point and was also enough to offset a 0.7% fall in consumer spending = and a 0.1% fall in personal income. GBP/USD resisted further losses at the= hand of a falling EUR/USD, but was dragged below Friday's 10-day low of 1.= 4344 to a fresh low of 1.4331. Sterling was able to resist dollar strength = as it climbed to a fresh 5-week high of 61.30 pence against the euro. GBP/J= PY also managed to maintain above the 186 level after a sharp sell-off on F= riday brought it off of 2-year highs around 188.26. However, GBP/USD outloo= k is bearish as 1.46 proved tough resistance last week and the pair has sin= ce resumed its descending channel path after crossing below 1.4455. Friday'= s close below this level could be a confirmation of a false break higher. R= esistance is seen at 1.4445, the 50% Fibonacci retracement of the move from= 1.4830 to 1.4060, followed by 1.4500/10. Sterling is seen supported again= st the euro by Friday's remarks from Bank of England Governor George who sa= id that there was a serious risk from a one size fits all monetary policy a= nd that the persistent weakness of the euro was creating problems for the B= ritish economy. This highlighted the risk of the UK joining the euro given = the ECB's reluctance to stimulate the economy despite the global downturn. = EUR/GBP fell to a 5-week low of 61.30 pence, support seen at 61.00. USD/JP= Y edged even closer to the key 130 mark and was undaunted by Japanese Trade= Minister Hiranuma comments that a further drop in the yen was undesirable.= Hiranuma's judgment is important because dealers will remained focused on = any remarks coming out of Japan after last week's remarks showed little con= cern for a weaker yen. Dealers noted that the welcoming of a weaker yen cou= ld put JPY under further pressure in thin holiday trade this week. But Hira= numa's comments highlighted the fact that the focus from here will be how J= apanese, US and Chinese officials react if USD/JPY passes 130 because of th= e trade implications of such a weak yen. =09[IMAGE] Audio Mkt. Analysis US= DJPY Breaks Above 129 Articles & Ideas 2002: Euro Deja Vu? USD/JPY= : The Return of Dollar Rhetoric? Articles & Ideas Forex Glossary Ec= onomic Indicators Forex Guides Link Library [IMAGE] =09 =09=09[IMAGE][IMAGE] [IMAGE][IMAGE]=09 =09=09 This e-mail is never sent unsolicited. If you wish to unsubscribe f= rom this or any other Forexnews.com newsletters, please click here . =09
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