Forex Daily Outlook January 26, 2010

A very quiet day in the market, aside from the pound, as traders await important economic data out of Europe, the UK, and US. Some of the other stories that people are talking about are new banking regulations, Bernankes reappointment, 4 asset bubbles to be wary of (story attached http://money.cnn.com/2010/01/25/news/economy/assets_bubbles.fortune/?section=...), and the possibility for the dollar to resume its long term decline if it does not break below certain levels (also attached http://www.bloomberg.com/apps/news?pid=20601083&sid=aWLqkWakOgFA).
Without price movement, its difficult to predict the direction of any pair. We still like the dollar appreciation and view last weeks move as confirmation that it will soon fall below 1.4000 and then 1.3800. We also see 1.4250 as a major area of resistance for the euro.

As of the time of posting this, the dollar has gained substantial ground during the Asian session due to risk aversion. We expect this to continue through the European and U.S. sessions. Members, be ready to trade.

If youd like a more detailed analysis with potential trade opportunities during our live trading session, please join us in the members area. Please visit us at www.spoteuro.com

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