Daily Forex Report for 12th Feb 2013

EURUSD: Support 1.3326 – 1.3364                              Pivot: 1.3396

                   Resistance: 1.3434 – 1.3466

The euro was almost unchanged near two-week lows against the dollar on Monday as concerns over political uncertainty in the euro zone weighed and investors watched a meeting of euro zone finance ministers. EUR/USD hit 1.3412 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3374, edging up 0.05%. The pair was likely to find support at 1.3352, Friday’s low and a two-week low and resistance at 1.3478, the high of January 25. Earlier Monday, official data showed that French industrial production came in slightly better than expected, falling 0.1% in December from November compared to expectations for a 0.2% drop. Stochastic are trading below 20% oversold zone where support is seen at 1.3350 and trading below some more selling is expected.

GBPUSD: Support: 1.5540 – 1.5598                             Pivot: 1.5704

                    Resistance: 1.5761 – 1.5867

The pound remained lower against the U.S. dollar on Monday, as sustained concerns over the outlook for growth in the U.K. continued to weigh on demand for sterling.  GBP/USD hit 1.5703 during U.S. morning trade, the pair's lowest since February 7; the pair subsequently consolidated at 1.5713, shedding 0.54%.  Cable was likely to find support at 1.5646, the low of February 7 and resistance at 1.5810, the session high.  Last week the BoE warned that the economic recovery would be “slow and sustained” and “likely to remain muted in the near term” after it announced a decision to leave interest rates on hold at 0.5% and keep its easing program unchanged. Stochastic has given negative intersection and if sustain trading is seen below 1.5630 free fall is expected to test 1.5400. 

AUDUSD: Support: 1.0203 – 1.0231                            Pivot: 1.0278

                     Resistance: 1.0306 – 1.0353

The U.S. dollar traded mostly lower against its major rivals in what is looking like another quiet Asian session on Tuesday. Markets in Hong Kong, Shanghai and others across the region remain closed for Chinese New Year festivities. AUD/USD climbed 0.10% to 1.0266 even after reports that traders are increasing bets that the Reserve Bank of Australia will pare rates later this year. Some traders are betting on nearly 50 more basis points being shaved from RBA’s key overnight rate, currently 3%. Even a 25 basis point reduction to 2.75% would take Australian interest rates to a record low. 

Stochastic are trading just above oversold zone with negative intersection and if trading is seen below 1.0250 can move to test 1.0160 level on lower side.