EUR/USD


Yeterday's Close:1.1631 High:1.1660 Low:1.1506

Resistance Levels:1.1650/60, 1.1720/30, 1.1780/90
Support Levels:1.1570/80, 1.1530/40, 1.1460/70

In late New York trade, the euro was up 1.12 percent at $1.1636.
While there is no single catalyst for the euro's robust performance, some analysts believe the price action reflects the increasingly positive data out of Europe.
Germany's influential ZEW index of investor expectations indicator on Tuesday jumped more than expected to 67.2, a 16-month high, boosted by strong September orders.
Analysts say there is nearby resistance at $1.1660 to $1.1680 that has capped the market heading to the New York close. That area will act as resistance into Thursday.
The risk is that we see a modest pull back toward the $1.1600 to $1.1580 area before we can rally again.
On a brake above $1.1680,the market would be looking for next target area at around $1.1750.

USD/JPY


Yestrday's Close:108.87 High:109.17 Low:108.48

Resistance Levels:109.20/30 ,109.60/70, 110.10/20
Support Levels:108.20/30 107.50/60, 106.70/80

The dollar slipped moderately against the yen around 108.75 yen ,with dealers nervous Japanese authorities might intervene to stem the yen's recent rise against the greenback. The euro rose sharply against the yen, up 1.13 percent at 126.56 yen after triggering a raft of automatic buy orders as key chart levels were crossed.

Analysts say that the dollar/yen is forming a fairly wide range between the 50-day moving average at 111.45 yen and the late October low of 107.80 yen. and expect that range to continue playing out over the immediate short term.
Only a rally if a break of 109.20 yen on the upside and that would project toward the 110.00 yen-110.40 yen area. The signals are more neutral at this point. Things would get a little bit more bearish again if we took out 107.80 yen on a closing basis.

USD/CHF


Yesterday's Close:1.3515 High:1.3630 Low:1.3453

Resistance Levels:1.3530/40, 1.3620/30 ,1.3690/00
Support Levels:1.3450/60, 1.3350/60 , 1.3320/30

Growing trade tensions between the United States and its trading partners, a rising casualty toll in Iraq and sluggish equity markets also benefited the Swiss franc, which leaped over 1 percent against the dollar. The Swiss franc is seen as a "refuge currency" in times of global instability and violence.
The dollar fell against the Swiss franc to close around 1.3520 after falling as low as 1.3450 francs hurt further by news Wednesday morning that at least 17 Italian military and at least 8 Iraqi citizens were killed in a blast in Iraq.

Analysts say there is near-term support at 1.3455 francs to 1.3425 francs. That support area will hold into Thursday and possibly provide a minor bounce toward nearby resistance at 1.3535 TO 1.3560 francs.
The market is very oversold from an intraday basis and is pretty much prime for a corrective bounce but it is probably not going to change anything as far as overall dollar-bear sentiment is concerned.
If we get below 1.3425 francs, the next area of support we see comes in around 1.3350 francs to 1.3330 francs.

GBP/USD


Yesterday's Close:1.6738 High:1.6785 Low:1.6643

Resistance Levels:1.6770/80,1.6810/20, 1.6860/70
Support Levels:1.6630/40, 1.6580/90, 1.6520/30

Sterling set a two-week low against the resurgent euro on Monday but fought back against the dollar as global currency moves overshadowed a key report from the Bank of England (BoE) on inflation.
The BoE appeared to confirm market expectations that UK interest rates would rise again after last week's hike, the first one in almost four years.
But analysts said the central bank also appeared less likely than had been expected earlier to move as soon as next month, most likely delaying its next hike to January or February.
Such expectations forced sterling to briefly give up some of its gains versus the dollar and extend losses against the euro after the BoE's quarterly inflation report was released.
Talk that a new rate hike may come later than markets are now pricing in was further fuelled by warning from BoE chief Mervyn King on the risks to debt-laden UK consumers from higher interest rates.

At close sterling traded at $1.6740 , up 0.7 percent from the previous session's close.
Against the euro, sterling traded at 69.50 pence, down 0.5 percent on the day.
It fell to session lows at 69.46 shortly after the BoE's release.

Backing up expectations of further hikes in the UK, the central bank raised its forecasts for both economic and price growth forecasts in the inflation report.
The BoE said price growth would be above its 2.5 percent target in two years and warned that the longer house prices keep booming, the greater the risk of a crash. But it also said that the risks to economic growth forecasts were on the downside.
Analysts said that with the BoE keeping a cautious tone, sterling was likely to be hurt in the near future as investors fret that they may have been too aggressive in pricing in future rate hikes over the last month.
Earlier on Wednesday, October jobs data showed a strong state of the UK labour market, supporting rate hike expectations.
Britain's main repo rate is now at 3.75 percent following the last hike, which was the first one in almost four years.