Daily Statement: Consolidations Proceed With, Euro Maintained by Trichet Speculations

Forex pairs are generally engaging in consolidations as markets digest recent moves. DOW closed below 10,000 psychological level at 9908 for the first time in three months but was kept above last week's low of 9835. Asian stocks are mixed which gold and crude oil are still in corrective recovery. There were talk in markets that ECB Trichet will leave central bank meetings in Australia a day earlier in order to attend ECB council meeting. That triggered some speculations that some policy measures directed to fiscal situations in Eurozone countries including Greece, Portugal and Spain would be discussed in the council meeting. Such speculations provided some support to Euro.

The common currency has been under much pressure recently on concern of Greece's ability to fund it's budget deficit and contagion spreadover to other countries. Portugal and Spain have been put into spotlight in the market recently. EUR/CAD dived to as low as 1.4582 last week, just inch above 61.8% projection of 1.7499 to 1.5183 from 1.6006 at 1.4575 and turned sideway. But after all, outlook remains bearish with 1.5030 resistance intact and we'd expect more downside in the Euro against Canadian dollar going forward.

Based on ActionForex.com Technical Outlook