EUR/USD: Greece Faces Early Elections

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GROWTHACES.COM Trading Positions

EUR/USD: long at 1.2175, target 1.2270, stop-loss 1.2160

USD/CHF: short at 0.9880, target 0.9800, stop-loss 0.9895

EUR/CHF: long at 1.2025, target 1.2090, stop-loss 1.1995

EUR/GBP: short at 0.7880, target 0.7770, stop-loss 0.7910

GBP/JPY: long at 186.70, target 189.10, stop-loss 185.80

GROWTHACES.COM Pending Orders

USD/CAD: buy at 1.1570, target 1.1740, stop-loss 1.1540

EUR/JPY: buy at 146.30, target 148.00, stop-loss 145.70

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EUR/USD: No Reaction To Greek Voting

(long for 1.2270)

• All eyes were fixed today on Greek third and final chance to elect a new president. The Greek Parliament’s failed to elect Stavros Dimas as president of Greece in the final round of voting for the presidential election. Under Greek law, a general election must now be called. The radical leftist Syriza party, which wants to renegotiate Greece’s bailout agreement with the EU and International Monetary Fund and roll back austerity policies, has held a steady lead in opinion polls for months, although its advantage has narrowed in recent weeks.
• The EUR/USD rate did not react significantly to the outcome of Greek voting. The medium-term outlook is bearish as divergent central bank expectations continues to provide excuses to sell EUR/USD. However, some corrective moves are likely in the days ahead. We got long at 1.2175 with the target at 1.2270. However, we keep stop-loss tight at 1.2160.

Significant technical analysis’ levels:

Resistance: 1.2256 (high Dec 25), 1.2272 (high Dec 22), 1.2302 (high Dec 19)

Support: 1.2165 (low Dec 23), 1.2133 (low Aug 2, 2012), 1.2118 (low Jul 26, 2012)

USD/JPY: Profit Taken. Looking To Get Long Again.

(medium-term outlook remains bullish)

• Japan’s core CPI amounted to 2.7% yoy in November and matched the expectations. In October CPI amounted to 2.9% yoy. Stripping out the effects of a sales tax hike in April, core consumer inflation was 0.7% yoy, slowing from 0.9% yoy in October and far below the 2% target.
• The so-called core-core inflation index, which excludes food and energy prices and is similar to the core index used in the United States, rose 2.1% yoy.
• Unemployment rate stood at 3.5% in November, steady from the previous month. The jobs-to-applicants ratio rose to 1.12 from 1.10 in October, marking the highest job availability since May 1992, separate data from the labour ministry showed.
• Japanese household spending fell 2.5% yoy in November vs. median estimate of a 3.8% yoy drop. Japanese retail sales rose 0.4% yoy in November, less than a median market forecast for a 1.1% yoy increase.
• Japanese industrial output unexpectedly fell 0.6% mom in November, down for the first time in three months. A rise of 0.8% mom was expected. Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect output to rise 3.2% in December and increase 5.7% in January.
• Japan’s government approved on Saturday stimulus spending worth JPY 3.5 trillion aimed at helping the country’s lagging regions and households with subsidies, merchandise vouchers and other steps. The government said it expects the stimulus plan to boost Japan’s GDP by 0.7%. Of the total, JPY 1.8 trillion will be spent on measures such as distributing coupons to buy merchandise, providing low-income households with subsidies for fuel purchases, supporting funding at small firms and reviving regional economies. The remaining JPY 1.7 trillion will be used for disaster-prevention and rebuilding disaster-hit areas including those affected by the March 2011 tsunami.
• We took profit on our long USD/JPY position (116.50-120.10) after the rate reached the stop-loss at 120.10 on Thursday. We are looking to get long again on dips. The overall scope is for gains back towards 121.86 – 2014 high posted on December 8.

Significant technical analysis’ levels:

Resistance: 120.75 (high Dec 24), 121.00 (high Dec 9), 121.86 (high Dec 8)

Support: 120.01 (low Dec 23), 119.41 (21-dma), 118.82 (low Dec 19)

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