Happy New Year to all our Chinese readers and those of you like to party regardless of nationality!

Going to keep this brief as I'm on the road today but suffice to say that we've seen more of the same with traders trying both sides of the various currency pairs in focus. EURUSD closed in NY around 1.2930 but Asia took it back down to 1.2857 just above strong support at 1.2850, only to find the world and his mum trying to hoover up a few down there, and we've since rebounded to 1.2940 before stalling again. Big resistance remains between 1.2980-1.3000.

EURGBP has been relatively quiet again, testing support below 0.8300 when EURUSD fell but similarly rebounding to 0.8333 (GBPEUR down to 1.1998) before holding. GBPUSD has managed to stay above 1.5500 but has sellers at 1.5560 and towards 1.5600, while GBPAUD fell to new all time lows of 1.4667 as the Aussie marches higher but has recovered some ground as AUDUSD stalls around 1.0500.

Forex Update

Forex Update

EURCHF has dealt itself into the ground for the moment, perhaps due in no small part to a few players being burnt by a fat finger on the machines causing a rush to 1.2150 on Thursday, creating panic buying fearing SNB action only to drop back sharply to 1.2074, where it's stayed since. Funny ol' game.

USDJPY is trying to hold above 77.00 on the back of EURJPY buying but there's still good resistance around 100.00 on the latter pair.

Gold and stocks still holding gains for the most part and both are making further headway this morning so far with Gold breaking up through recent resistance around $1665 to hit highs of $1675. With better risk sentiment prevailing it just proves that the gold buying is not for safe haven purposes right now but perhaps still as a hedge looking forward as well as decent demand for coins at the moment.

Nothing of note in the way of data today so we'll look out for the usual rhetoric and scrappy start to the week.

Good luck out there wherever your week takes you.

Agree or disagree? Then please leave a comment in the box below or contact me by e-mail.

Mike ‘Oscar’ Paterson has been in the Forex trenches for nearly three decades working as a senior Spot trader in London at UBS, Chief Dealer FX at the State Bank of Victoria and in charge of Spot CHF at Credit Suisse with a daily turnover in excess of $1.5 billion. Mike now works as an independent consultant providing a fully bespoke service to the corporate and private sectors in physical FX delivery as well as guiding those who wish to improve their currency trading. Mike also presents seminars and workshops and writes for a number of publications.
To contact Mike please call +0044 (0) 1732 700383 or email mike.paterson@economicvoice.com
The views expressed above are those of the author and should not be taken as investment advice. MSP Foreign Exchange Services will have no liability for, or to, any persons executing trades based on the content above.

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