EU Session: February 8, 2012

Switzerland

USD/CHF: The Swiss currency has a few economic releases today; the markets will be anticipating the Unemployment Rate, which is expected to remain stable at 3.1%.

The pair dropped further during yesterday’s trading and closed the day well below its 100 DAY MA, despite the SNB member speech which announced that they will defend EUR/CHF 1.2000 floor. In addition, they mentioned that the Swiss franc is likely to weaken on economic fundamentals in 2012. In the meantime, technically the pair remains heavily overbought and is likely to regain above 100 DAY Moving Average again, which has changed to a solid resistance at 0.9180, but if the pair fails to regain above that resistance, then further downward pressure could be seen toward the 0.9000 barrier.

Unemployment Rate: A leading index for the jobs report that measures the percentage change in the number of unemployed people who are seeking new jobs. The index has a significant impact in normal and risky markets.

Europe

EUR/USD: The European currency has a few economic releases today, and these releases are expected to have a slight impact on the markets; therefore, risk appetite may continue to control the markets’ sentiment throughout the day. The pair will be waiting for the German Trade Balance surplus, which is expected to widen +15.1B vs. 14.1B.

In the meantime, the pair regained above the 1.3200 solid resistance area, reaching as high as 1.3270 during the Asian session, while technical indicators are still showing that the pair is heavily overbought, and has a significant chance to drop back again at least for a retracement. The obstacle resistance stands at 100 DAY Moving Average which stands at 1.3333 and the obstacle support now stands around 1.3200.

Trade Balance: A leading indicator for exports and imports that measures the change in the total value between imports and exports. The index has a significant impact on the markets.