Daily Forex Preview – 30/12

Guest post by Orbex

The Euro declined after a failed attempt to rally on the news of the Greece snap elections which failed to elect Stavros Dimas as the President. With the country now heading to polls in late January or early February, it highlights the risks of a renewed crisis in Greece, which was only until recently making a steady headway into coming out of its debt crisis. The result of the news saw a mild flight to safety with the Japanese Yen gaining strength. Despite the weekend news of a new fiscal stimulus package being launched by the Japanese Government, the Yen was stronger against the Greenback in a liquidity thin trading session.

There were not much of fundamentals yesterday but today’s calendar sees some modest data out of Europe and the Case Shiller housing price index and consumer confidence from the US. Both the events however are unlikely to cause any volatile moves in the markets.

Trading is expected to slow down drastically towards the end of today’s trading session as the markets across major regions close for New Years eve and New Years day celebrations.

Fundamentals Recap – December 29, 2014

• Switzerland UBS consumption indicator 1.29, last month’s reading revised upwards to 1.32

Fundamentals – December 30, 2014

• UK Nationwide housing price index m/m to be soft at 0.2%; y/y to ease to 7.2%
• Spain retail sales y/y to be soft at 0.8%
• US S&P/CS HPI composite -20 y/y 4.4%
• CB consumer confidence 94.6

EURUSD Daily Pivots

EURUSD price action shows a possible decline to the next support level at 1.20626 before we can expect to see any corrective moves in this market. Price action at the time of writing shows a possible retest to the daily pivot level followed by a decline with the objective of dropping to 1.20626 later during the week as yesterday’s daily candle closed bearish indicating a continued bearish momentum.

USDJPY Daily Pivots

USDJPY continues to look bullish in the long term but short term price action indicates a potential to drop down to 119.66 level to establish support at this previously broken resistance level followed by a dip to 118.974 should the previous level fail to hold prices. With the weekly candlestick charts turning bullish followed by a pin bar rejection candlestick, USDJPY looks bullish despite the intraday weaknesses in the pair.

GBPUSD Daily Pivots

GBPUSD posted a bearish candlestick on the daily charts and looking to the H4 charts we notice the price action turning increasingly bearish and is currently trading just a few pips above the expected support at 1.5486 levels. A proper test to this low of 1.5486 could then set the stage for the potential to make a corrective move or a continuation of the declines.

Guest post by Orbex