Stocks and Dollars

Euro-area economic confidence improved less than expected in January as the region’s economy is moving toward a recession despite leaders’ efforts to revive growth. An index of executive and consumer sentiment increased to 93.4 from a revised 92.8 in December, said the European Commission in Brussels on Monday.

As the British pound has continued to move higher, confirming low has been formed at 1.5234 earlier this month and consolidation with upside bias is seen for further gain to 1.5810-15 (61.8% Fibonacci retracement of 1.6167-1.5234) and then previous support at 1.5869. Having said that, upside should be limited to

On Monday Pound/Dollar adjusted strongly downwards with 90 pips. The Cable depreciated from 1.5745 to 1.5653 yesterday, in converse with the positive Interbank sentiment at almost +46%, closing the day at 1.5709. Today the British Pound is pushing up, climbing up to 1.5755. On the 1 hour chart the upward

The euro corrected from the top reached at the end of last week. The inability to conclude a Greek PSI deal and a correction on the recent risk rally were a good enough excuse for a setback of the euro. However, the decline remains limited for now

Euro’s retreat after last week’s rise to 102.21 has retained our view that a minor top is formed there and consolidation below this level would take place with mild downside bias for retracement to 99.90-95 and possibly towards 99.60-65, however, renewed buying interest should emerge there, bring another upmove later.

Although aussie has rebounded after falling to 1.0526 yesterday, above resistance at 1.0688 is needed to confirm recent c leg rise is still in progress and extend gain to 1.0700, then to previous resistance at 1.0753 (a leg top) but loss of near term upward momentum should prevent sharp move

The British pound has continued to move higher and previous resistance at 1.5670 was penetrated, the bullish cross-over of the Tenkan-Sen above the Kijun-Sen also suggest low has been formed at 1.5234, so bullishness is seen for retracement of recent decline to previous resistance at 1.5775, then test of the

The conclusion of the Eurozone summit yesterday brought no new progress on the Greek debt crisis, leading to a growing sense of realisation that European policy makers are running out of ideas. This in itself is unlikely to be a shock to the market, as investors and speculators have been