Stocks and Dollars

The break of 0.9399 minor resistance suggests that pull back from 0.9547 has finished at 0.9242 already. Intraday bias is flipped back to the upside for a test on 0.9547 first. Break will confirm resumption of whole rally from 0.7065. On the downside, below 0.9320 minor support will flip intraday

Despite dropping to 77.56, there was no follow through selling and USD/JPY quickly recovered. Consolidations from 76.57 seems not finished and intraday bias is turned neutral. On the upside, above 78.22 will flip bias to the upside to extend the consolidation. But upside should be limited well below 79.52 and

GBP/JPY drops sharply to as low as 120.05 so far. The break of 120.29 support indicate that consolidation pattern from 119.37 is already finished with three waves to 122.76 already. Intraday bias is cautiously on the downside for 119.37 first. Break will confirm resumption of recent decline from 127.30 and

EUR/GBP’s consolidation from 0.8305 is still in progress and intraday bias remains neutral at this point. We’d expect recovery to be limited by 0.8424 resistance and bring fall resumption. Below 0.8305 will target 100% projection of 0.9083 to 0.8529 from 0.8830 at 0.8276, which is close to 0.8284 key support.

Financial markets may look deceptively subdued again today, but there is a notable difference between this morning and the start of previous sessions this week. Negative euro sentiment has seemingly returned from vacation before the start of the new year, taking EURUSD down to lows of 1.2888 – a collapse

The euro sharply dropped yesterday with markets in a risk-off mood in poor year-end liquidity. Italian bond auctions were successful yesterday. Investors are now waiting to see the result of today’s auction of a sale of up to 8.5 billion euro of Italian bonds. Versus the greenback, the single currency

EUR/JPY’s recent decline resumed by taking out 10104 and dropped to new decade low of 100.35 so far. Intraday bias is back on the downside for 100 psychological level first. Break will target 61.8% projection of 123.31 to 100.74 from 111.57 at 97.62 next. On the upside, break of 102.53

Euro dived to decade low against yen and hover after yesterday’s record low against aussie. The common currency remained broadly pressured in spite of solid bond auctions recently. Italy will sell as much as EUR 8.5b of bonds due from 2014 to 2022 today. Based on recent auctions, today’s result