Dukascopy Afternoon Forex Overview

Dukascopy Fundamental Analysis

Greece faced a decline in the retail sales in October, according to official data. The retail sales decreased by 10.8% in October on an annual basis after declining by 6.5% in the preceding month, according to ELSTAT. The revenue generated by sales decreased by 8.1% in October as compared to 3.7% slump in September.


Crude oil futures edged down during the early European trade on Friday despite supply concerns due to Iranian issue. On the New York Mercantile Exchange, crude oil futures for February delivery lost 29 cents to $99.39 a barrel. Brent oil eased down 34 cents to $107.69 a barrel, on the ICE Futures Exchange.


In a year dominated by the European debt crisis, the FTSE 100 has lost 5.5%, knocking around £85bn off the value of Britain’s top companies. The leading index closed at 5572.28 in a half day of trading ahead of the new year, up 5.51 points on the day. Since January 1, it has fallen by 327 points.


Swiss stocks (SMI) advanced for a third day, paring the benchmark index’s decline in 2011, after the country’s central bank said foreign-currency reserves rose and Germany’s Finance Minister ruled out a euro-area breakup.


Japanese manufacturing activity expanded in December for the first time in two months  as output and export orders fell at a slower pace, a survey showed on Friday, in a tentative sign that demand could be stabilizing.

Dukascopy Technical Analysis

Daily maximum: 1.2998
Daily minimum: 1.2903
The daily mean target at 1.2936 has been hit after Spain missed its deficit target and promised to raise taxes to tackle its debt woes. Daily Resistance: 1.2996; 1.3033; 1.3102. Daily Support: 1.2890; 1.2821; 1.2784. Daily Bias: Bearish.


Daily maximum: 100.68
Daily minimum: 99.84
The shared European currency broke the 100 mark on fresh hopes EU is having bad times dealing with its debt crisis after Spain announced it missed the previously set deficit target. Daily Resistance: 101.00; 101.39; 101.87. Daily Support: 100.13; 99.65; 99.26. Daily Bias: Strongly bearish.


Daily maximum: 1.5561
Daily minimum: 1.5403
The British pound breached the daily forecast mean as FTSE 100 traded bearishly today and ended 2011 with a 5.5% loss. Daily Resistance: 1.5472; 1.5530; 1.5586. Daily Support: 1.5358; 1.5302; 1.5244. Daily Bias: Strongly bearish.


Daily maximum: 77.73
Daily minimum: 76.91
The American dollar moved sharply downwards, erasing previous losses within the last trading in 2011, on new fears European crisis might spread to the world largest economy. Daily Resistance: 77.87; 78.11; 78.25. Daily Support: 77.49; 77.35; 77.11. Daily Bias: Bearish.


Daily maximum: 0.9426
Daily minimum: 0.9341
USD/CHF successfully pierced the market participants’ mean target at 0.9415, though the pair commenced a bearish correction on worries the EU debt crisis might spur the US economic recession. Daily Resistance: 0.9450; 0.9499; 0.9528. Daily Support: 0.9372; 0.9343; 0.9294. Daily Bias: Neutral.

What To Read Today

Deepening Crisis Over Euro Pits Leader Against Leader
On a chilly October evening in her austere chancellery, Angela Merkel placed a confidential call to Rome to help save the euro.


Growth in U.S. May Quicken on Confidence Even as Europe Shrinks: Economy
Rising confidence, fewer firings and gains in holiday sales show the U.S. economy is picking up, defying a slowdown in Europe and much of the rest of the world.

Asia & Pacific

China Contraction in Manufacturing Boosts Case for Easing Policy: Economy
China’s manufacturing contracted for a second month in December as Europe’s debt crisis cut export demand, fueling speculation that the central bank may cut lenders’ reserve requirements within days.