GROWTHACES.COM Trading Positions
EUR/USD: long at 1.2130, target 1.2270, stop-loss 1.2140
USD/JPY: long at 119.50, target 121.80, stop-loss 118.80
EUR/GBP: short at 0.7880, target 0.7770, stop-loss 0.7910
EUR/JPY: long at 145.50, target 148.00, stop-loss 145.00
EUR/CHF: long at 1.2025, target 1.2090, stop-loss 1.1995
GBP/JPY: long at 185.60, target 189.10, stop-loss 185.10
GROWTHACES.COM Pending Orders
USD/CAD: buy at 1.1600, target 1.1740, stop-loss 1.1540
EUR/USD At New 29-Month Low
(we got long at 1.2130, keep stop-loss tight)
[ul]
[li] Greece heads to an early general election next month after parliament rejected Prime Minister Antonis Samaras’s nominee for president on Monday. Greek 10-year bond yields surged to a 15-month high and stocks tumbled after former European Commissioner Stavros Dimas fell short of the 180 votes needed to become president in the decisive third round of voting. Antonis Samaras set January 25 as the date for a parliamentary election.
[/li][li] Opinion polls point to a victory by the radical leftist Syriza party, which wants to wipe out a big part of the national debt, and cancel the austerity terms of a EUR 240-bn bailout from the European Union and International Monetary Fund that Greece still needs to pay its bills. After Greece nearly crashed out of the euro in 2012, when it had to accept a bailout in return for austerity measures, the country had just returned to economic growth this year and ended a four-year exile from bond markets.
[/li][li] The EUR/USD dipped to 29-month low and broke below support levels near 1.2130. We expect some correction moves in the EUR/USD and got long at 1.2130 for 1.2270. However, we keep our stop-loss tight. The nearest support level is 1.2118 (low on July 26, 2012). The next resistance level is 1.2220 (high on December 29).
[/li][/ul]
Significant technical analysis’ levels:
Resistance: 1.2220 (high December 29), 1.2256 (high Dec 25), 1.2272 (high Dec 22)
Support: 1.2118 (low Jul 26, 2012), 1.2100(psychological level), 1.2053 (low Jul 25, 2012)
USD/JPY: Long At 119.50. Target 121.80.
(bullish outlook)
[ul]
[li] The USD/JPY fell today as investors sought the traditional safety of the Japanese currency after Greece failed to elect a new president on Monday.
[/li][li] The Bank of Japan published its plan to buy government bonds under its massive JGB purchase program from January 5. The BoJ reduced the initial purchase amount from January 5 in the following 4 zones: in the 1-year and shorter zone (from JPY 110 bn to JPY 70 bn), in the 1-year to 3-year zone (from JPY 450 bn to JPY 400 bn), in the 3-year to 5-year zone (from JPY 450 bn to JPY 400 bn) and in he over 25-year zone (from JPY 160 bn to JPY 140 bn). The BoJ left the amounts for the 5-year to 10-year zone (JPY 400 bn), floating-rate bonds (JPY 140 bn) and inflation-indexed bonds (JPY 20 bn) unchanged.
[/li][li] We used lower levels and got long on the USD/JPY at 119.50. We set the target at 121.80, just below the resistance level of 121.86 (2014 high, December 8). Our stop-loss level is at 118.80.
[/li][/ul]
Significant technical analysis’ levels:
Resistance: 121.00 (high Dec 9), 121.86 (high Dec 8), 122.00 (psychological level)
Support: 119.17 (session low Dec 30), 118.82 (low Dec 19), 118.26 (low Dec 8)
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