By Forex Signs, Inc. – The pair CHFJPY is now consolidating between 85.137 resistance level and 84.138 support level, but a strong downtrend is seen as price is now testing the support level. EMA (14) for the short term suggest a bearish trend as shown by the trend line’s steep downward momentum. RSI (14) for the short term shows price is near oversold level, but ,medium term and long tern shows price remains in neutral zone. MACD suggests a downtrend as the fast line is now on a downtrend ahead of the signal line. A breach of the support level will confirm this bearish trend.
Lingering Euro Debt Crisis Could Weigh In Again On Its Currency
For the upcoming European Session, the strength of the Euro will hinge on the US dollar’s weakening value due to last week’s disappointing employment figures. The Euro’s strong rally last week can be attributed to the US jobless rate jumping to 9.8%, the highest since the recession took place, while the ECB’s purchases of Irish and Portuguese debt also helped the Euro. Although this upcoming session would be light in economic indicators, investors are looking at the next Euro-Area Country that would require assistance as this could be the only market mover for the Euro.
Sentix Investor Confidence, the only European indicator to be released this session, is expected to drop to 13.2 points after 2 months of consecutive better than expected numbers. This might have a small impact on the Euro, but expect the Euro to be volatile as Fed Chairman Ben Bernanke might talk about another round of quantitative easing which might increase the risk appetite for the Euro.
US consults allies, urges China to rein in North Korea
The United States held three-way talks on Monday with South Korea and Japan about how to deal with nuclear-armed North Korea, as President Barack Obama urged China to rein in its ally in Pyongyang.
US Secretary of State Hillary Clinton opened talks here with her counterparts Kim Sung-Hwan of South Korea and Seiji Maehara of Japan by holding a moment of silence for the victims of North Korea’s bombardment of a South Korean border island on November 23.
“This meeting takes place at a time of grave concern in northeast Asia amid the provocative attacks from North Korea,” Clinton said as she sat at a U-shaped table with the two foreign ministers.
“We are committed to our partners and we are committed to the preservation of peace and stability in northeast Asia and on the Korean peninsula,” Clinton said after she had met with each minister separately.
Kim said: “Cooperation among our three countries is very imperative.”
In the latest US military show of support for South Korea, the Pentagon announced it was sending its top military officer, Admiral Mike Mullen, to visit Seoul on Tuesday and Wednesday.
Officials said Mullen, the chairman of the Joint Chiefs of Staff, will meet South Korean counterparts including new Defence Minister Kim Kwan-Jin, who replaced Kim Tae-Young when the latter resigned after the shelling.
South Korea’s military began a major live-fire exercise on Monday, following a major show of naval strength last week by Seoul and its close ally Washington, designed to deter Pyongyang from future attacks.
The United States still has 28,000 troops deployed in South Korea, which since the 1950-53 Korean war has been divided from the North by the most heavily fortified frontier in the world.
Meanwhile, US and Japanese forces continued their biggest-ever joint military exercises, which were nonetheless scheduled before the shelling of the island.
Washington’s talks with its top Asian allies exposed the diplomatic isolation of China, which has taken a softer approach to dealing with Pyongyang.
But the White House said Obama, in a phone call late Sunday, urged his Chinese counterpart Hu Jintao to send “a clear message” to North Korea that its shelling of South Korean territory and other provocations were “unacceptable.”
The United States, South Korea and Japan all ignored China’s invitation for them and Russia to hold emergency six-party talks in Beijing this month after North Korea shelled Yeonpyeong island, killing two civilians and two marines.
The five countries, plus North Korea, are partners in the long-stalled six-party talks aimed at scrapping Pyongyang’s nuclear weapons programmes.
The US, Japan and South Korea want North Korea to demonstrate a serious commitment to disarmament before resuming these talks.
Both Kim and Maehara said they looked to China’s and Russia’s cooperation in the future.
In his phone call, the White House said, Obama reiterated his condemnation of both the North Korean shelling and its pursuit of a uranium enrichment programme “in defiance of its obligations.”
Last month a US scientist revealed he had been shown a new uranium enrichment plant equipped with at least 1,000 centrifuges at North Korea’s Yongbyon nuclear complex outside the capital Pyongyang.
The display sparked fears that North Korea, which has already carried out explosive tests of two plutonium nuclear devices, will have another avenue to build atomic bombs.
The Chinese Foreign Ministry also reported the Obama call, quoting Hu as saying that “under the current situation, it is imperative that the response is cool and rational and that we firmly prevent a deterioration of the situation.”
The Washington Post meanwhile reported that the Obama administration, in an apparent toughening of its approach toward China, has privately started accusing Beijing of “enabling” North Korea to start a uranium enrichment programme and to launch attacks on South Korea.
Citing an unnamed senior US official, the newspaper said Washington is moving to redefine its relationship with South Korea and Japan, potentially creating an anti-China bloc in northeast Asia.
In The Hague, the prosecutor of the International Criminal Court announced on Monday a probe into suspected war crimes committed by North Korea in both the shelling of the South Korean island and the sinking of a warship.
International investigators blamed North Korea for the sinking of the South Korean corvette Cheonan in March which killed 46 sailors. The North denies responsibility.
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