Europe’s biggest economy has now officially entered a recession, as it contracts the most in a dozen years this morning (GDP figures  -0.5 lower than the expected  -0.2).  All around the world the toll of the financial crisis is starting to effect the real economy - meaning people losing their jobs and not just numbers and stock  falling down.

The German GDP figures have pushed EURUSD under 1.24 this morning, however the pair corrected the move this afternoon and is now back to trade within its three week range of 1.25-1.31. I already mentioned that the pair was ripe for some swing trading this week and the week before, but pay attention to any further breaks under 1.25, since that might lead us to test 1.2330  pretty soon.

The GBPUSD  has breached its 1.5150 support level downward  yesterday without looking back, this is alway a sign for substantial selling power in the market. However it did stop at its main support level around 1.4830 (for now) suppling a good profit taking point   and  a quick buy opportunity for the intraday traders.

GBPJPY did break clearly under 148.2 the day before, leading to an immediate sharp fall to 139, just as i mentioned on yesterday’s post. Watch for the next support level at 137.4 and mainly for the one at 129.3.

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