Silvio Berlusconi Makes Trouble For EURUSD Bulls
Although the single currency is higher on the day, it’s abundantly clear that the recent resignation by Italian Prime Minister Mario Monti is keeping Euro bulls at bay. The prime minister is now scheduled to step down following the 2013 budget vote taking place before the end of the year – instead of serving till April of next year. The announcement changes the political landscape of the largest of the troubled peripheral nations, and will likely add to recent pessimism when it comes to the single currency. However, with public discontent over recent austerity and tax increases rising, many of Monti’s previous allies have fallen away. In particular, former Prime Minister Silvio Berlusconi and his People of Freedom (PDL) party, have become disenchanted with the current administration. The sentiment was heightened last week when representatives of the PDL walked out of an economic reform vote – calling for a vote of no-confidence in the prime minister. The notion was unfortunately backed by several other members of the Democratic Party – Monti’s major backer in the political arena.
With Monti’s final resignation to come in the next few weeks, it will be up to Italian President Giorgio Napolitano to dissolve parliament, and either appoint a successor or keep Monti as the country’s PM. General elections will follow, placing the date somewhere in February 2013 at the earliest. - FXstreet.com
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UPCOMING EVENTS :
2012-12-11 10:00 GMT | Germany.ZEW Survey - Economic Sentiment (Nov)
2012-12-11 13:30 GMT | USA.Trade Balance (Oct)
2012-12-11 23:30 GMT | Australia.Westpac Consumer Confidence (Dec)
2012-12-11 23:50 GMT | Japan.Machinery Orders (YoY) (Oct)
FOREX NEWS :
2012-12-11 04:59 GMT | AUD/USD strengthens on China data
2012-12-11 04:42 GMT | EUR/USD breaking to fresh session highs on better than expected China data
2012-12-11 03:55 GMT | GBP/JPY bears defending 132.50
2012-12-11 01:20 GMT | EUR/AUD on fresh session highs following bad Aussie confidence data
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EURUSD :
HIGH 1.29622 LOW 1.29287 BID 1.29597 ASK 1.29601 CHANGE 0.15% TIME 08:05:06
OUTLOOK SUMMARY : Up
TREND CONDITION : Downward penetration
TRADERS SENTIMENT : Bearish
IMPLIED VOLATILITY : Low
MARKET ANALYSIS - Intraday Analysis
We expect resuming of the uptrend formation if the price manages to overcome next resistance level at 1.2968 (R1). Immediate focus comes on 1.2981 (R2) and 1.2996 (R3) in such scenario.
Resistance Levels: 1.2968, 1.2981, 1.2996
Support Levels: 1.2905, 1.2891, 1.2877
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GBPUSD :
HIGH 1.60873 LOW 1.6069 BID 1.60870 ASK 1.60879 CHANGE 0.08% TIME 08:05:07
OUTLOOK : SUMMARY
TREND CONDITION : Downward penetration
TRADERS SENTIMENT : Bearish
IMPLIED VOLATILITY : Low
The initial uptrend formation was resumed later today. Possible targets are located at 1.6094 (R2) and 1.6102 (R3), in case of successful penetration above the next resistance level at 1.6087 (R1).
Resistance Levels: 1.6087, 1.6094, 1.6102
Support Levels: 1.6063, 1.6052, 1.6042
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USDJPY :
HIGH 82.437 LOW 82.305 BID 82.310 ASK 82.315 CHANGE -0.06% TIME 08:05:08
OUTLOOK SUMMARY : Sideway
TREND CONDITION : Sideway
TRADERS SENTIMENT : Bearish
IMPLIED VOLATILITY : Low
USD/JPY trades in non-directional basis on the medium term perspective. Further price decrease is expected below the next support level at 82.28 (S1). Break here is required to enable next targets at 82.20 (S2) and 82.14 (S3).
Resistance Levels: 82.44, 82.50, 82.56
Support Levels: 82.28, 82.20, 82.14
Source: FX Central Clearing Ltd,( Forex Blog | Forex Market Hours | ECN Automated Forex Trading] | FXCC )