EU Morning Report - Risky currencies sell-off

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By NikolasX | November 28, 2012 8:28 PM EST

Easy Forex


The euro (EUR) is weakening against most of its major counterparts, as market participants focus on the US fiscal cliff scenario. This comes one day after the eurogroup meeting reached an agreement on Greece. The eurozone finance ministers consented after 13 hours of negotiations on Monday to lower the interest rates on bilateral loans to the debt-ridden nation, while interest payments due to the European Financial Stability Fund (EFSF) will be postponed by 10 years.  Additionally, the maturity of the loans increased to 30 from 15 years. In the US, the fiscal cliff situation has not seen any developments and as days go by with no breakthrough, investors will start looking for alternative risk haven assets.


§ The Canadian (CAD) and Australian dollar (AUD) are weakening versus most of its counterparts. The same is true for the British pound (GBP) following the release of the 3rd quarter Gross Domestic Product (GDP) in line with expectations at 1.0%.

§ OIL has now found support at 87.00 US dollars (USD) a barrel and a breakthrough below that level could pave the way for lower lows.

§ GOLD (XAU) dropped from 1749.15 to 1741.43 yesterday and recorded a lower low this morning at 1737.43. There is a major support level at 1735.80 for the precious metal.

Stay in tune throughout the day with foreign exchange bullets!


. Pivot Preference1 Sentiment2
. EURUSD 1.2955 SHORT @ 1.2945 39% of deals buy EUR
. USDJPY 82.25 SHORT @ 82.25 52% of deals buy USD
. GBPUSD 1.6030 SHORT @ 1.6020 38% of deals buy GBP
. AUDUSD 1.0454 LONG @ 1.0454 28% of deals buy AUD
. GOLD 1735 LONG @ 1735 68% of deals buy GOLD
. OIL 88.50 SHORT @ 88.50 78% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
Currency Time (GMT) Event Forecast
. EUR 09:00 M3 Money Supply Annual Growth in October 2.8%
. USD 15:00 New Home Sales in December 390k
. OIL 15:30 Crude Oil Inventories 0.4mil
Movers Shakers
The US dollar (USD) rebounded off the support found at 6.5900 against the Swedish krone (SEK) yesterday, breaking through the resistance areas observed at 6.6400 and 6.6800. The pair now lies above 6.7000 and while retracements should be expected, as long as the 6.68 support remains intact there should be more potential for upside.


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