Daily FX: Jordan Provides Minor Spark On Fragile Day

 | Feb 19, 2013 04:48PM ET

Swiss National Banks Jordan provided some life in a relatively quiet day, highlighting the required peg on the Swiss Frank against the Euro, pushing the Euro higher.
This morning saw the ZEW German and European Economic Sentiment figures both come in better than expected, but both failed to inject any life into the markets .
The Aussie rose following the monetary policy minutes.
Markets feel tightly wound at the momen,t having consolidated over yesterday's holiday and today. A catalyst could easily spark a larger than expected move.
Tomorrow, the UK's MPC meeting minutes could prove interesting given King's comments on stimulus above the inflation target. We also have a raft of US PPI figures in the afternoon.

EURUSD
Thanks to SNBs Jordan, the Euro pushed higher today. It has now formed a support level at the 1.3300 level instead of the previous 1.3285, however, resistance comes in close above its current price at 1.3420. If we break this we could see a test of the 1.2520 high, then potentially back up to monthly highs around the 1.3650 mark. If we move lower from here, the key support level to watch is the 1.3285 mark.
Personal Bias: Bullish
Support: 1.3300 / 1.3285
Resistance: 1.3420 / 1.3520 / 1.3650
Strategy: Look for buying opportunities on a retracement and rejections off of support to the 1.33 mark.

$EURUSD (Daily)  21_09_2012 - 19_02_2013
$EURUSD (Weekly)  Week 9_2011 - Week 8_2013

GBP/USD

The British pound dropped again. Feels like this pair could do with a bit of relief on the way down, but we still hold the opinion it could go straight to the lows around the 1.5300 mark.
Our RTAS bias system has been net short this pair since 1.5850.
Personal Bias: Bearish
Support: 1.5400
Resistance: 1.5630 / 60
Strategy: Look for sell signals on the 4hr chart to enter short aiming for the 1.5300 mark.

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AUD/USD

The Aussie pushed higher today. Our outlook remains Bearish but we continue to like this pair for a push and test of the 1.0400 handle, where we will look for good short signals.
The 1.0350 area looks like relatively good value for short and long positions, so it's key to watch for clear signals. Whilst the pair hovers around the 200 day SMA though it could remain choppy.
Personal Bias: Bearish
Support: 1.0310 / 1.0285
Resistance: 1.0400 / 1.0460
Strategy: Stand aside

USD/JPY

Small amount of Yen strength today but relatively limited. We expect to see the USD/JPY pair test recent support again, but remain neutral to its direction; toppish weekly candles but with recent yen weakness this pair is difficult to call.
Our recent long netted 130 pips with a 1/3rd of the position locked in profit but with the potential to move should the pair push higher again.
Personal Bias: Neutral
Support: 92.00 / 91.00 / 88.00
Resistance: 95.00
Strategy: Watch key levels of 95.00 and 92.00 for signals.

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