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The ECB will also announce policy today. The market will be looking for any remarks on Greece, Spain and Portugal. In accordance with the stance adopted last months, Trichet is unlikely to entertain any notion that EMU could be broken up.

Dollar/Yen is trading this week with an increase on the 15 minute chart. On the bigger picture on the 1 hour chart there is also upward channel formed, staring 27 January. On Wednesday the currency couple declined to the 90.09 bottom, from where it rose sharply to the 91.24 top,…

The European fiscal situation continues to be the catalyst for currency movements in the aftermath of the EU approval of the Greek austerity plan. As noted on Wednesday the EU approval of the Greek plan had dealers believed that the commission’s findings were actually somewhat less favorably beyond the headline…

Despite rising to 126.98 yesterday, the single currency failed to penetrate indicated resistance at 127.08 and has retreated, suggesting further consolidation would take place and retest of support at 124.45 cannot be ruled out, break there would signal the final leg of wave v is in progress for weakness towards…

The Australian did falter below indicated resistance at 0.8928 and has fallen again, suggesting the last leg of wave c is still in progress and whilst weakness towards support at 0.8735 cannot be ruled out, loss of momentum would limit downside to 0.8700 and bring rebound later. Above said resistance…

The single currency fell again to 0.8603 (almost reached our indicated downside target at 0.8600) last week as suggested in our previous update and although price has recovered again from there and retracement to 0.8800 cannot be ruled out, as long as resistance at 0.8834 (previous support turned resistance) holds,…

As the single currency slipped again after brief rebound to 1.5034, we are keeping our view that the wave (B) ended at 1.6010 (with a short c) and wave (C) is still in progress with first leg of (C) about to end soon and whilst weakness to 1.4637 (50% projection…

Risk appetite saw slight erosion in the Asian session, with the USD as the principal gainer. Equity markets across the region were weaker, with the Hang Seng down -1.66%. The heavy tone was not helped by New Zealand, which saw a jump in unemployment data from 6.5% to 7.3% (a…

EUR/USD is in a downtrend, after peaking at 1.5146 (Nov.25,2009). Technical indicators are neutral, and trading is situated below the 50- and 200-Day SMA, currently projected at 1.4793 and 1.4169.

The European Central Bank will probably keep interest rates at a record low and refrain from unwinding any more emergency lending measures as concern that Greece may fail to contain its deficit takes center stage. ECB officials meeting in Frankfurt will leave the benchmark interest rate at 1 percent, according…