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Pivot Point Table
The EURUSD fell yesterday to a low of 1.1727 following the ruling by the European Court of Justice that the bond purchase program by the ECB is acceptable as long 'certain conditions are met'. The OMT (Outright Monetary Transactions) program by the ECB has been met with resistance by hardliners particularly in Germany who feel that eventual the liability will be borne by Germany and the German taxpayers as the German economy is the largest and most productive in the Eurozone and generates significant trade surpluses. The tacit approval by the ECJ endorses the policy set forth by the ECB President Mario Draghi and pushed the Euro down to a new low against the USD as investors speculated that the activities of the ECB to prop up the ailing European economy while dilute the value of the euro currency. The pair slipped below the 1999 launch price of 1.1747 when the Euro currency was first unveiled to markets.
The pair remains in a steep downtrend from the 1.3990 level in early 2014 and has lost 22 cents (2200 pips) and 15.7% in the process. Following disappointing retail sales data in the United States economy yesterday afternoon the pair briefly rose to 1.1815 although the price has since retreated to 1.1750 less than 25 pips off the lows. Data showed that French CPI as well as Eurozone Industrial Production both rose slightly in December in contrast to forecasts of further weakening in these two figures. Crude Oil rose from the lows of $44.21 to reach as high as $48.89 a barrel in a 10% advance in a day and the USDJPY bounced back from 116.07 to 117.95 as the USD advanced against most of its major peers. The USDCAD rose above the 1.20 level for the first time since 2009 while the US Dollar rose to the highest level against the Swiss Franc since September 2010 climbing to 1.0215. Overnight Australian Employment Change and the Unemployment Rate delivered a boost to the AUD economy after data showed that December created 374 000 new jobs vs expectations of just 5300 and the unemployment rate dipped from 6.3% to 6.1%.
EURUSD Support areas include 1.1750, 1.1650, 1.1600, 1.1500, 1.1400, 1.1350.
Resistance levels above are at 1.1975, 1.2000, 1.2200, 1.2300, 1.2380, 1.2402, 1.2444, 1.2500.
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