Euro/US Dollar Present Price: 1.4433

We got our fracture of support last night (1.4455) and have pushed lower to 161.8% of the first wave (1.4407). Here we look to the RSI where we are slightly oversold.

Just because we have an oversold reading does not mean that we are preparing to go higher. All other indicators are strongly bearish with the MACD opening up (wider lines showing growing trend) and showing no signs of divergence.

A break of 1.4406 should take us down to the trend line support at 1.4300 before we correct higher. A move back up through 1.4464 would negate that view.

Support levels: 1.4406 1.4393 1.4337 1.4300

Resistance levels: 1.4447 1.4472 1.4517

US Dollar/Swiss Franc Broke Over 1.0218 Key Resistance

US Dollar/Swiss franc broke above 1.0218 key resistance and formed a short term cycle bottom at 1.0132 level on 4-hour chart.

climb towards the upper border of the falling price channel is expected later today, and a clear break above the channel resistance will indicate that the downtrend from 1.0507 has completed, then another rise to 1.0800 could be seen.

As long as the channel resistance holds, the price action from 1.0132 is treated as consolidation of downtrend and one more fall below 1.0132 is still possible after consolidation.

Euro/US Dollar Taded With A Low Of 1.4331

The Euro (EUR) a break higher into the mid 1.44's was reversed by over a cent in the US session as the Dollar bulls roared back to life.

Stops were hit in both directions and have left the technical situation very messy albeit with a bearish tinge.

Overall the EUR/USD traded with a low of 1.4331 and a high of 1.4461 before closing at 1.4355.

The Japanese Yen (JPY) Dollar strength carried the pair over Y92 for fresh 2 month highs and most crosses were higher. NZD/JPY and AUD/JPY did especially well as the interest rate outlook between Japan and New Zealand widened.

Overall the USDJPY traded with a low of 91.51 and a high of 92.10 before closing the day around 92.00 in the New York session.

Stocks Remained Buoyant Globally

U.S. Dollar Trading (USD) initial Dollar weakness during the European session was reversed aggressively in the US session as Dollar buyers returned in force.

Stocks remained buoyant globally and this helped risk currencies such as the AUD outperform.

December CB Consumer Confidence jumped to 52.9 vs. 49.5 previously.

DJIA -1 points closing at 10545, S&P -1 points closing at 1126 and NASDAQ -2 points closing at 2288.

Looking ahead, December Chicago PMI forecast at 55 vs. 56.1 previously.

Also released, Weekly Crude Oil inventories forecast at -1.7 vs. -4.9 previously.

CHF Came off VS, US Dollar

The Swiss franc came off vis-à-vis the U.S. dollar today as the greenback tested offers around the CHF 1.0420 level and was supported around the CHF 1.0350 level.

Data released in Switzerland today saw the December KOF leading indicator improve to 1.68 from 1.62 in November. KOF, however, also reported the Swiss economy will “significantly lose momentum” in the coming months.

Data released in Switzerland this week saw the UBS November consumption indicator rise to 1.28 from 0.88 in October.

This represents the third consecutive monthly increase, evidencing an increase in consumer spending. U.S. dollar offers are cited around the CHF 1.0615 level.

The euro moved lower vis-à-vis the Swiss franc as the single currency tested bids around the CHF 1.4855 level while the British pound appreciated vis-à-vis the Swiss franc and tested offers around the CHF 1.6700 figure