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Highlights

US : Market opinion the U.S. Fed will expand monetary stimulus to boost the economy.
US : Fed’s Operation Twist of swapping $45 billion a month in short-term Treasuries for long-term debt expires this month.
JAPAN Overseas money managers, , reduced purchases of Japanese short-term notes in 2012 by 72 %
EURO-ZONE : Monti Says Market Shouldn’t Fear Political Turmoil in Italy
UK : BoE Governor Mervyn King said the Group of 20 nations must revive efforts to address global imbalances or more countries may start using exchange rates as their key tool for monetary policy.

Commodities

Oil Trades Near Three-Week Low as Fuel Stockpiles Seen Rising
Gold Halts Three-Day Advance Before Fed Meeting; ETPs Set Record
China Copper Output Rises to Record on Demand Recovery Optimism

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Prepared by: The Heffernan Group of Companies

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Crude Oil (Jan 13) intraday: the downside prevails.

OIL
Brent oil prices rose slightly on Monday after Chinese data showed oil imports increased last month, a sign of robust demand for commodities in the world’s No. 2 oil consuming country. Brent for January delivery rose 31 cents to settle at $107.33 per barrel, while U.S.-traded West Texas Intermediate fell 37 cents to $85.56 per barrel, posting a fifth day of losses.

Pivot: 86.90
Our preference: SHORT positions below 86.9 with targets @ 85.35 & 84.5.
Alternative scenario: The upside breakout of 86.9 will open the way to 87.6 & 88.6.
Comment: capped by a negative trend line.

Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point |  Black represents the price when the report was produced {OPENEDEMAILMARKER}

GOLD (Spot) intraday: rebound. GOLD Markets Gold dropped for the first time in 4 days as some investors sold the metal after prices climbed to a one-week high, Spot gold fell as much as 0.4 % to $1,706.95 before trading at $1,708.05 in Asian hours , Bullion rallied to $1,717.36 yesterday, the most expensive since Dec. 3, Gold February slipped 0.3 % to $1,708.70 , Cash silver fell 0.8 % to $32.99, also dropping for the first time in four days. The metal climbed to a one-week high of $33.435 an ounce yesterday. Spot platinum declined 0.3 % to $1,619 snapping a three-day advance. The metal rallied to $1,627.32 yesterday, the highest price since Oct. 19. Palladium dropped 0.2 % to $700 after climbing to $705 yesterday, the highest since Sept. 14 Factors Holdings in ETP expanded to a record of 2,629.315 metric tons yesterday, Market opinion the U.S. Fed will expand monetary stimulus to boost the economy. Fed’s Operation Twist of swapping $45 billion a month in short-term Treasuries for long-term debt expires this month. Technical : Gold strong resistance seen at $1,721 Pivot: 1684.00 Our preference: LONG positions above 1684 with 1722 & 1731 in sight. Alternative scenario: The downside penetration of 1684 will call for 1672 & 1654. Comment: a support base at 1684 has formed and has allowed for a temporary stabilisation. Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced

FOREIGN EXCHANGE

Markets
The euro extended its recovery from a two-week low on Tuesday as nerves calmed over Italy’s latest political
turmoil and the prospects of more stimulus from the Fed , Euro t $1.2940, having climbed off a low around $1.2880. It has risen some 0.5 % from Friday’s two-week trough around $1.2876
Factors

Technical Euro Immediate resistance is seen at $1.2973, a level representing the 38.2 % retracement of its Dec. 5-7 fall.
Japan has a trade deficit again , prime minister calls for unlimited central-bank stimulus.
Overseas money managers, , reduced purchases of Japanese short-term notes in 2012 by 72 %
Monti Says Market Shouldn’t Fear Political Turmoil in Italy
BoE Governor Mervyn King said the Group of 20 nations must revive efforts to address global imbalances or more countries may start using exchange rates as their key tool for monetary policy.

EUR/USD intraday: continuation of the rebound. Pivot: 1.2910. Our preference: LONG positions @ 1.292 with 1.297 & 1.3 as next targets. Alternative scenario: The downside breakout of 1.291 will open the way to 1.288 & 1.2855. Comment: the pair remains on the upside and is approaching its next resistance as the RSI is well directed. Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced

GBP/USD intraday: the upside prevails. Pivot: 1.6040. Our preference: LONG positions above 1.604 with 1.6095 & 1.6115 in sight. Alternative scenario: The downside penetration of 1.604 will call for 1.602 & 1.6. Comment: the pair remains on the upside and is approaching its resistance. Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced

USD/CAD intraday: the downside prevails. Pivot: 0.989 Our preference: Short positions below 0.989 with targets @ 0.9855 & 0.9835 in extension. Alternative scenario: Above 0.989 look for further upside with 0.991 & 0.993 as targets. Comment: a break below 0.9855 would trigger a drop towards 0.9835. Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced

USD/JPY intraday: under pressure. Pivot: 82.45. Our preference: SHORT positions @ 82.4 with 82.15 & 82 as next targets. Alternative scenario: The upside penetration of 82.45 will call for a rebound towards 82.6 & 82.85. Comment: the pair stands below its resistance and remains under pressure. Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced

AUD/USD intraday: under pressure. Pivot: 1.049 Our preference: Short positions below 1.049 with targets @ 1.0455 & 1.0435 in extension. Alternative scenario: Above 1.049 look for further upside with 1.052 & 1.0545 as targets. Comment: as long as the resistance at 1.049 is not surpassed, the risk of the break below 1.0455 remains high. Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced

USD/CHF intraday: under pressure.

Pivot: 0.9345.
Our preference: SHORT positions below 0.9345 with 0.931 & 0.929 in sight.
Alternative scenario: The upside breakout of 0.9345 will open the way to 0.9365 & 0.9385.
Comment: the pair is under pressure and is challenging its support.

Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced