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With its overall bearish structure intact and a follow through lower is now underway, we continue to see risk for further weakness towards its Feb 05?10/2010 lows 1.3584/30. This view remains valid while EUR trades and holds below its July?09/Feb 01?10 lows at 1.3831/51 or even the 1.4025/28 levels, its…

Loss of upside momentum at the 1.0779 level saw the pair tumbling lower through its strong support at its Feb 03?10 low at 1.0544 to close at 1.0502 level on Friday. Its recovery triggered off its 2010 low at 1.0219 is now halted increasing risk of further downside pressure towards…

The dollar is showing strength as we approach the European opening. Eur/Usd is just off fresh lows trading at 1.3584, likewise with Gbp/Usd currently at 1.5642and Usd/Chf at 1.0802.

The debt problems in Greece still persist, dragging down the Euro. There are also renewed uncertainties over the credit market in Dubai, which should lead to more USD support. Dubai and Dubai World have not made an offer to creditors on the holding company’s debt restructuring. This just leads to more speculation that the global economy is not out of the woods.

Dollar Index: The 4 hour trend is long. The Usd has been bought in the move to the safety of Usd based Treasuries. Traders now have separation in regard to the differing percentage moves that are being made on each pair. Take care going long-Usd while the global risk markets…

Cable: The four hour trend is short. The pair is reversing off the lower part of the weekly chart channel, with a lot of upside room, if the market wants to go higher towards 1.5850 initially. Watch for 4 hour chart price action around the 1.5650 area, to hold above…

Aussie: The four hour trend is short. The pair held support on the weekly chart cannel at 0.8550, and now looks well set to move higher on any upside moves in equity and commodity trade. Long-term targets e at 0.9500, now that 0.8750 has been tested and held as support….

With Chinese and US markets closed today, volume was light pre-market open in London. Once again, market participants are focused on the sovereign debt crisis around the eurozone, with fears of Dubai’s debt restructuring now back on the plate. Lack of detail and a definitive direction of the Greek rescue…

The Lunar New Year in Asia and President?s day in the US will keep trading subdued. However, light economic calendar will have little consequence, as the markets seem intently focused on the result of EU meetings and potential comments. We are noticing a level of divergence in the EU sovereign…

The Cable continued to trade within the range mentioned in the morning. Having dipped towards 1.5611 intra-day, the pair has restarted to move towards the upper end of the range. There’s immediate Resistance in the region 1.5690-1.5708 which could lead to a test of the Resistance region 1.5757-62 [13-DMA (1.5757)…