Speaking at a luncheon at the World Economic Forum which is underway in Davos, Switzerland, George Soros seemed to endorse President Obama’s view that banks must not be allowed to be too big to be permitted to fail.
Ready and wide to accept the wilds of the EUR/USD pair, the Bollinger Bands have had the price in their lower regions for many days. Each of the three remaining indicators on the daily chart have been directed down by the dollar's rise to riches. Full Stochastics, StochRSI and RSI, each down and asking any market mover that will listen or bit of news for help up.
EURUSD negative trend is extended by low bearish movement below support barrier. Even though bears are sliding downside, lack of confidence can initiate bulls price recovery. At the moment, look for waiting option with selling opportunities, but it should be done with a care.
The single currency Euro struck a fresh 9-month trough versus the Japanese Yen, and a 6-month low against the U.S. Dollar on continuing investor worries over the worsening fiscal situation in Greece.
Deflation pressures remains a concern for Japan based on decline in consumer prices and the yen’s 8 percent climb in the past nine months which are forcing policy makers to remain open to further stimulus. Despite Japans massive debt load of 973 Trillion yen (a ratio of 200% to GDP compared to the US 90%) traders are still driving Yen crosses lower on risk aversion fears.
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EURUSD finally bears side did manage to breakout by support barrier, however this wasn't done in sharp and confident way. Selling actions are possible, but it should be done with a care. Bulls can easily recover the price and break a trend a line where bears can get get in danger. At the moment waiting action is better option.
EUR/USD reached our ST 4th channel extension target at 1.3945 overnight, bottoming at 1.3936. This should complete the ST down-cycle, and the angled gray cycle shown also completed four channels at that level, reinforcing the validity of the bottom. Whether we merely correct the ST down-cycle now or begin a new MT up-cycle remains to be seen, as we have conflicting signals in the LT.
The Bank of Japan has maintained its policy of low interest rates following a unanimous decision of the board. The board identified tackling the deflationary pressure that is bedevilling the Japanese economy as a critical challenge and is of the opinion that the Japanese economy is improving but that continued governmental support was needed to keep things on track. The board expects the economy to shrink by a further 2.5% this year, but this view is more optimistic than their earlier prediction of a 3.2% contraction.
The Bollinger Bands still open wider to accommodate the EUR/USD's march into the depths of the dollar's unforeseen ride to power. Each of the other indicators, Full Stochastics, StochRSI and RSI are at the bottom of their windows and asking some bit of news or group of market movers to lift them from the depths. On the 28th that lift will not come in the form of news, the heaviest items for this pair today cancel each other out.
