EUR taps 4 month Low

USD-JPY: 79.85.. EUR-USD: 1.2848

EUR-USD taps 4 month low: The US Dollar index has slipped off its best levels of the session, but still holds modest gains near 80.55. EUR-USD is -65 pips at 1.2855 and near its best levels of US trade after reports surfaced that attempts to form a new Greek government will continue tomorrow. The more pressing issue is whether or not tomorrow's EUR430-M non-Greek law bond maturity payment will be made.

Early selling dropped the EUR to 1.2825, its lowest level in four months as action slides closer to the January lows near 1.2650.

EuroZone data is heavy as French and German preliminary GDP, EuroZone Flash GDP, French preliminary nonfarm payrolls, EuroZone and German ZEW economic sentiment readings are all released. GBPUSD is +40 pips at 1.6105 after 1.6050 support held.

Traders continue to seek refuge in sterling as a means of protection during the latest uncertainty in the region.

Britain's trade balance will cross the wires tomorrow morning.

USD-CHF is +55 pips at .9345 and is higher for an 11th consecutive session. Monday's strength has the pair at its best level since the middle of January with the 2012 highs near .9600 now in the cross-hairs.

Meanwhile, EUR-CHF is +5 pips at 1.2010 after Swiss National Bank Chairman Thomas Jordan indicated the franc is still too strong.

USD-JPY is -5 pips at 79.85 during a quiet session for the pair. Action has been rather lackluster as of late despite the European worries coming to a head as trade hugs the pair's 100-Day Moving Average. Traders continue to watch the 79.50 level for a breakdown with the impending move likely producing a test of the pair's 200-day moving average (78.45).

AUD-USD is -35 pips at .9985 with today's selling dropping the hard currency to its lowest level of 2012. Near-term support in the .9900 area is under careful scrutiny; however, the late November lows near .9700 is the important level to monitor.

Australia's Monetary Policy Meeting Minutes will be released tonight along with new motor vehicle sales.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.