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Forex Trading StrategiesEUR/USD at interesting support zone around 1.2050 - will German ZEW cause any excitement today?
JPY consolidates a bit weaker as Japan headed back to work today - but could strengthen again further out.
MAJOR HEADLINES PREVIOUS SESSION
US Consumer Credit for November fell -$0.6B vs. +$5.0B expected.
Australia Trade Balance for November was at -2470M vs. to -1800M expected - mostly due to a sharp rise in imports
Japan Overall Household Spending fell -1.3% vs -0.4% expected.
UK BRC Retail Sales rose the most in 19 months in December
Crude oil prices fell sharply yesterday from recent highs.
USD remained strong overnight while AUD weakend sharply.
THEMES TO WATCH UPCOMING SESSION
Very little to report overnight - except for disappointing news out of Asia with another disappointing Household spending number from Japan - when is that Japanese consumer going to start spending?? Also, Australia's Trade Balance looked terrible in light of the recent Retail Sales disappointment. It's a bit strange to see AUD called a commodity currency when it has a sizeable trade deficit. Yes, commodity exports are vital for the AUD, but the sharp increase in imports is not a positive sign for the country's current account balance and therefore currency. Still, AUD/USD may find support in the 0.7450 area.
On the calendar today we have the German ZEW number - seems that we may see another strong reading there as we have over the last few months, though the market doesn't seem to react very strongly to these numbers - though it could give the likes of EUR/CHF some support, as that pair looks oversold for the short-term.
Elsewhere, GBP has been strong as the market seems to have gotten ahead of itself lately in trying to price in an easing Bank of England. Overnight, the BRC Retail Sales monitor showed a sharply stronger retail environment - so it will be interesting to see how EUR/GBP does in the key 0.6820/40 support zone.
Note: the support/resistance levels used in the matrixs of this document are levels derived from yesterday high, low and close. Reference in the text to other support/resistance levels will occur.
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