The NY session was predictably slow as most US markets were closed in observance of Martin Luther King Jr. Euro traded in a 1.4370 to 1.4400 range all session. Expect the price action here to heat up in the London session though, as the all-important German ZEW survey of economic optimism is due. The market is looking for a relatively unchanged read of 50.0 for January after a 50.4 print the prior month.

The Euro has enough problems with the peripheral countries as it stands, so expect any weak result here (from the strongest economy in the Eurozone) to elicit a decent amount of downside pressure. The 21-hour sma has been providing immediate support by 1.4380 and we would also expect short-term buying interest ahead of the 1.4330 zone.

In terms of the upcoming Asia session, there is nothing noteworthy on the docket. Keep in mind, however, than many of the yen crosses have been in consolidation mode for a good while. These patterns tend to snap sooner or later and in a pretty violent manner. We are currently eyeing USD/JPY 90.60 as the potential downside trigger and ditto for 130.00 in EUR/JPY.