Daily Market Review - 12/27/2013

Technical Analysis

EUR/USD

The Euro is on the rise. Now it is approaching the level of 1.3800, where an important resistance is seen. The ability to overcome the resistance will enable the currency to grow further. Otherwise we are likely to see a decline, because recent ascent was at very steep angle, and correction of the trend is quite possible.

USD/JPY

The Dollar is growing against the Yen. General outlook is bullish at the moment. A deep fall below the up slanting trend line will be a signal for a trend reversal or a correction. Eventually the outcome willdepend on the depth of retracement.

GBP/USD

The Pound continues to be strong. The rate has almost reached the peak, attained on December 18th, which is the highest point of the period seen on the chart. If there is no rebound from that area, the outlook remains bullish.

Overview

It's time to conclude the aftermath of the holidays. Tuesday has passed quite calmly on currencies' market. The US Dollar has been moderately appreciating against the Euro and the Yen, but has given in some value against the British Pound. In the States there were reports published on durable goods and real estate sales on the primary market in November. The numbers have come out positive, but in conditions of low liquidity, reaction of the market was minuscule.

The Euro's lowest point was 1.3654 on Tuesday. There was not enough strength for growth at that moment. The Pound traders took advantage of positive statistics on real estate market in the absence of important macroeconomic statistics. British association of bankers has published the report on mortgage volume in November. The figure came out at 45000, setting 6 year maximum. Against this positive background the pair GBPUSD grew up to 1.6380 and closed trading day a bit lower that level.

Traders were actively selling the Yen during Asia Pacific trading session. A stable growth of Nikkei 225 Futures had been seen before that. It has set a fresh yearly maximum, and against such background bulls have been actively opening long positions. After raising it to 104.4 bulls decided to fix profit.

ECONOMIC CALENDAR

Today there are no essential events scheduled on the markets.