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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] EUR/USD Collapses to 6-= Month Low as Dollar Reins Supreme January 25, 7:00 AM: EUR/$..0.8663 $/JPY.= .134.34 GBP/$..1.4139 $/CHF..1.6976 EUR/USD Collapses to 6-Month Low as Do= llar Reins Supreme by Jes Black At10:00:00 AM US Dec Existing Homes (exp 5= .2 mln, prev 5.21 mln) The ice finally broke under EUR/USD this morning af= ter tripping stop loss orders around 87.35 on its way to a 6-month low of 8= 6.70. The euro suffered a one-two punch this week on disappointing remarks = from ECB president Duisenberg which contrasted with upbeat comments by Fed = Chairman Greenspan. Markets were pleased by Greenspan's admission that he b= elieves the worst has past. But players were unenthusiastic by Duisenberg's= assertion that interest rates are on hold for the time being and that Germ= any's rising budget deficit was a further concern. By straight-jacketing Ge= rmany, the ECB has nearly assured markets that the economy's engine of grow= th will continue to lag behind the rest of the Eurozone. EUR/USD has plung= ed nearly 2.5% since Duisenberg's comments on Wednesday. But the break belo= w key channel support at 87.40/50 brought about a technical decline to a ne= w 6-month low of 86.70. Support at 86.80 must now hold to avoid targeting 8= 6.50 on its way to 85.55 the 71.8% Fibonacci retracement of the move from 8= 2.25 to 95.95. Temporary moves higher are not seen by the market as indicat= ing strength, and are regarded as selling opportunities, dealers say. Follo= w up support is seen at 87.0 and 86.80. Resistance is viewed at 88.15, 88.= 60 and 89.10-- the 50% Fibonacci retracement of the move from 82.25 to 95.9= 6. Sterling and the Swiss franc dropped in tandem with the single currency= against the dollar after breaking below support at $1.4200 and 1.6775 fran= cs respectively. EUR/GBP was the only upside to an otherwise tragic day for= the single currency as it rose to a 3-week high of 61.21. Across the board= sterling weakness sent GBP/USD to a 7-week low of $1.4165 while GBP/JPY fe= ll 1.5 yen to a day's low of 190.86. GBP/USD also suffered a technical defe= at today after breaking below 1.4220/00. Support is seen at 1.4160 followed= by 1.4113 which marks the 61.8% Fibonacci retracement of last years move f= rom 1.3680 to 1.4829. USD/CHF rose to a one-month high of 1.6937 and now f= aces resistance at the December 26 reaction high of 1.6945. A move beyond 1= .6945, which marks the 50% Fibonacci retracement of last year's July high o= f 1.8221 to the September low of 1.5670, will be key for further gains in S= wissy. Support is seen at 1.6880 and 1.6840. USD/JPY also rose to a new 39= -month high of 134.93 in Tokyo trade as falls in the yen have lead to asset= sales by foreigners which has lead to a vicious cycle of further yen weakn= ess. Moreover, fears that Japan's sovereign-debt rating will soon be downgr= aded has convinced most dealers that there is further weakness in store for= JPY. Resistance is seen at 135.00 followed by 135.40 and 136.00. Support i= s seen at 134.50 and 133.80. The fundamentals behind today's move reflect = growing optimism about a turnaround in the US economy. Thursday's testimony= by Fed Chairman Greenspan showed a rare admission of error in his previous= ly downbeat assessment of the economy. Greenspan said that the forces restr= aining the US economy are diminishing and activity is beginning to firm. Bu= t he also projected that the US is close to zero GDP growth and that there = will need to be signs of business investment and strong consumer demand for= the recovery to gather momentum. The only domestic economic release of n= ote today is the National Association of Realtors' existing home sales repo= rt, which is expected to show that housing activity weakened slightly by 0.= 1% in December to bring the total to 5.2 mln from 5.21. Today's earnings a= nnouncements are not as heavy as the past two days and include Ericsson LM = Telephone and Lockheed Martin. =09[IMAGE] Audio Mkt. Analysis Markets R= ally as Greenspan Clarifies Outlook Articles & Ideas ECB: One More = Cut NAM & the Strong Dollar: Phase II Articles & Ideas Forex Gloss= ary Economic 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 fr= om this or any other Forexnews.com newsletters, please click here . Any op= inions expressed by representatives of Forexnews.com or its affiliates as t= o the commentary, market information, and future direction of prices of spe= cific currencies reflect the views of the individual analyst, and do not ne= cessarily represent the views of Forexnews.com or its affiliates in any way= . In no event shall Forexnews.com or its affiliates have any liability for = any losses incurred in connection with any decision made, action or inactio= n taken by any party in reliance upon the information provided in this mate= rial; or in any delays, inaccuracies, errors in, or omissions of informatio= n. =09
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