This morning the EUR/USD slipped below the key 1.35 level versus the USD before finding some buying interest at technical levels. Today has a large amount of data releases on the economic calendar but the political issues should not be ignored, especially in Greece as Prime Minister Lucas Papademos will have one of his first political tests.
The Bank of England will release its Quarterly Inflation Report as well as jobs data. Markets will be looking for hints of additional quantitative easing to come from the BoE. Sterling has been supported despite the additional GBP 75 bn of QE. Only now is the pressure being felt in the GBP/USD. The pair has support at the October 16th low of 1.5630. Resistance comes in at 1.5850 from the bottom of the late October-November consolidation pattern.
Today at 13:00 GMT new Greek PM Lucas Papademos will face a confidence vote in Parliament. Papademos is expected to get the necessary number of votes but a failure would likely signal difficulties in passing the necessary austerity measures to receive the next EU bailout funds.
The EUR/USD has risen from 1.3425 to 1.3525 upon the opening of the London trading session. There is a falling wedge pattern forming on the daily chart from the October high and the November 1st low. The chart pattern typically is considered bullish. Resistance on the chart pattern is at 1.3710 and falling. Support is located at today’s low followed by the October low of 1.3145.
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Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
