The euro rose against the yen and the dollar for a second day as expectations increased Greece will get assistance, boosting demand for higher-yielding assets.

Fundamental
The euro rose against the yen and the dollar for a second day as expectations increased Greece will get assistance, boosting demand for higher-yielding assets. Europe’s currency strengthened against 11 of its 16 major counterparts after French President Nicolas Sarkozy said the euro region is ready to rescue Greece and before Greek Prime Minister George Papandreou meets U.S. President Barack Obama in Washington tomorrow.

Technical
Technical analysis gives us a bullish momentum in the market and the euro may start an uptrend after a break of standard error channel upper line. MACD crosses the signal line upwards; RSI is in a clear uptrend and Bollinger Band gives us a bullish signal.

EUR/USD (Daily Chart)
The primary tendency is still in a downtrend.

EUR/USD (4 Hour Chart)
The pair breaks standard error channel upper line.

EUR/USD (Hourly Chart)
The Minor trend is in an uptrend.

Resistance
1.3710
1.3790

Support
1.3625
1.3530

The euro may strengthen to $1.40 as European officials work on a rescue package for Greece, easing concern of “default and contagion,” Royal Bank of Scotland Group Plc. said.

Fundamental
The euro may strengthen to $1.40 as European officials work on a rescue package for Greece, easing concern of “default and contagion,” Royal Bank of Scotland Group Plc. said. The 16-nation currency is also poised to advance after futures traders placed a record amount of bets that it will weaken, paving the way for a reversal of sentiment, wrote Greg Gibbs, a currency strategist at RBS in Sydney.

Technical
Technical analysis show us the euro may start a bullish movement based on many indicators like MACD, which gives us a buying signal by crossing MACD line to the signal line upwards and RSI bounced on 30% line forming a clear uptrend. Bollinger gives us a bullish signal by closing the candle above the lower band.

EUR/USD (Daily Chart)
The primary tendency breaks standard error channel middle line.

EUR/USD (4 Hour Chart)
The pair breaks downtrend line upwards.

EUR/USD (Hourly Chart)
The Minor trend is in a sideways.

Resistance
1.3690
1.3725

Support
1.3530
1.3440

UBS

EURO/DOLLAR: "Remains vulnerable below $1.3839 with broader focus still downwards at $1.3497 ahead of the $1.3424 low. Near-term resistance is at $1.3692."

DOLLAR/YEN: "Initial support is at 89.92 yen ahead of the 89.25 low while resistance lies at 91.29 ahead of the 92.15 high."

STERLING/DOLLAR: "Current focus is on initial resistance at $1.5575 but the pair remains heavy below $1.5816; while the latter holds, expect a decline to the $1.5357 low."

DOLLAR/SWISS FRANC: "Focus is on 1.0715 francs but remains constructive above the 1.0609 low; with the latter holding, expect a bounce towards the 1.0899 high."

AUSTRALIAN DOLLAR/U.S. DOLLAR: "Heavy below the $0.9328 high; initial support is at $0.8879 ahead of the $0.8786 reaction low. Resistance lies at $0.9071."

EURO/SWISS FRANC: "Bearish momentum eyes 1.4618 francs ahead of the 1.4579 key low. Resistance is at 1.4683 ahead of the 1.4702 reaction high."

EURO/STERLING: "Initial resistance is at 88.36 pence ahead of 89.12 (38.2 percent retracement of 94.12-86.03) while near-term support lies at 87.03 ahead of the 86.58 low."

Derivative traders are signaling that the euro’s slump to a nine-month low will continue even if European Union leaders bail out Greece.

Fundamental
Derivative traders are signaling that the euro’s slump to a nine-month low will continue even if European Union leaders bail out Greece. Short-term rates for borrowing in euros in the forwards market are the cheapest relative to loans in dollars since September. The 50 percent collapse in that spread this month signals investors are betting the European Central Bank will keep its benchmark at a record low, sacrificing euro strength to prevent deficit-cutting by debt-laden economies in the region from stymieing growth.

Technical
Technical analysis shows us the Euro may continue its downtrend. We notice the supply in the market by using some indicators like MACD, which gives us a selling signal in oversold area. RSI shows us the strength in the market. Bollinger gives us a bearish signal by closing the candle below the middle band.

EUR/USD (Daily Chart)
The primary tendency is in a clear downtrend.

EUR/USD (4 Hour Chart)
The pair breaks the standard error channel upper line.

EUR/USD (Hourly Chart)
The Minor trend facing a strong resistance.

Resistance
1.3660
1.3780

Support
1.3485
1.3440

Treasury Secretary Timothy F. Geithner said the U.S. is in no danger of losing its Aaa debt rating even though the Obama administration has predicted a $1.6 trillion budget deficit in 2010.

Fundamental
Treasury Secretary Timothy F. Geithner said the U.S. is in no danger of losing its Aaa debt rating even though the Obama administration has predicted a $1.6 trillion budget deficit in 2010. “Absolutely not,” Geithner said, when asked in an ABC News interview broadcast yesterday whether a downgrade is a concern. “That will never happen to this country.”
Geithner said investors around the world turn to U.S. Treasury securities and dollar-denominated assets whenever they are worried about global stability. That reflects “basic confidence” in the U.S. and its ability to bounce back from the global recession, he said.

Technical
The U.K. currency might start to rebound after a strong bearish movement based on technical analysis. Indicators gives us a bullish signal for a correction reason like RSI, which bounces on 30% line upwards, MACD crosses the signal upwards on hourly chart, and Bollinger gives us a bullish signal by closing the candle above the lower band.

GBP/USD (Daily Chart)
The primary tendency is in a clear downtrend.

GBP/USD (4 Hour Chart)
The pair bounced on standard error channel lower line.

GBP/USD (Hourly Chart)
The Minor trend bounced on pivot point level.

Resistance
1.5670
1.5730

Support
1.5515
1.5450

Investors are pulling cash out of Europe at a record pace as central banks slow euro purchases, jeopardizing its status as a substitute to the dollar as the world’s reserve currency.

Fundamental
Investors are pulling cash out of Europe at a record pace as central banks slow euro purchases, jeopardizing its status as a substitute to the dollar as the world’s reserve currency. Last year, policy makers loaded up on euros, while analysts at Barclays Plc in London and Aletti Gestielle SGR SpA in Milan predicted central bankers would make good on threats to reduce the greenback’s dominance. Now the euro is down 8.4 percent since Nov. 25 in its fastest slide in 10 months amid concern that cash-strapped countries like Greece won’t pay their debts. Billionaire investor George Soros said Jan. 28 that there’s “no attractive alternative” to the dollar.

Technical
Technical analysis show us the euro may continue its downtrend as MACD gives us a selling signal by crossing MACD line to the signal line and RSI breaks 30% line downwards. Bollinger gives us a bearish signal by closing the candle below the lower band.

EUR/USD (Daily Chart)
The primary tendency is in a strong downtrend.

EUR/USD (4 Hour Chart)
The pair breaks Fibonacci fan lower line.

EUR/USD (Hourly Chart)
The Minor trend cannot break standard error channel middle line upwards.

Resistance
1.3930
1.3990

Support
1.3830
1.3750