EUR/USD trading predictions jan 17 2012, Analysis and Recommendations

forex trading outlook today - EUR/USD trading predictions jan 17 2012, Analysis and Recommendations : The single currency held close to the daily highs after a French debt auction, the first one after France lost its AAA rating by S&P. The markets were expected to be quiet today as the US markets are closed for the holiday

EUR/USD creep back a bit after lows in the Asian market dropping to 1.2680 area and the pair has spent the end of the market day inside a narrow range below that level, amid thin liquidity. As the markets close in the UK, EUR/USD is quoting around 1.2665, 0.3% above its opening price.

The French government sold €8.59 billion of debt on Monday, with borrowing costs declining from levels seen on Jan 9. A sale of 51-week bills produced a yield of 0.406%, down from 0.454% last week. There seems to be no panic in the markets.

There are support levels for tomorrows trading at S1: 1.3023 |S2: 1.3015 |S3: 1.3001 |R1: 1.3045 |R2: 1.3059 |R3: 1.3067

Tomorrow, we can expect the currency pair to dance around without much action, until the economic data is released. If all data is within forecast ranges the markets will react to news from the EU and the ECB. Read More..

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