When we look at the price action in the forex market, we see that trading is thin due to approaching year end and cautious stance of investors. Investors remain doubtful about whether European leaders can end the debt crisis any time soon. Another factor which is souring the sentiment is European Central Bank president Mario Draghi’s comments.

President Mario Draghi said that the European Central Bank’s purchases of peripheral debt were temporary and not infinite. He also said that economic recovery in the eurozone might be slower than expected in 2012. He added that the next year will be tough for eurozone banks. His comments were disappointing for investors who were hoping for further bond buying in order to keep yields stable.

EUR/USD is still under the pressure as European finance ministers failed to boost resources at the International Monetary Fund by the targeted €200 billion.

Today we see that the Asian stock markets opened almost flat. NIKKEI started the day at 8,318.03, previous close was 8,296.12. HANG SENG opened at 18,045.36, previous close was 18,070.21. SENSEX opened at 15,440.10, previous close was 15,491.35. The market participants’ reaction was positive after Federal Reserve Bank of Richmond President Jeffrey Lacker said that he predicted that the U.S. economy will grow 2% to 2.5% in 2012. However, the market players worry that the death of North Korean leader Kim Jong-Il could result in instability and chaos in the region.

EUR/USD is trading at 1.3000 by the time of typing and for today resistances are located at 1.3068 and 1.3194. Support levels are 1.2972 and 1.2900.

GBP/USD is at 1.5508. Resistance levels are located at 1.5540 and 1.5610. Supports are located at 1.5460 and 1.5400.

USD/CHF is trading at 0.9374 by the time of typing and for today resistances are located at 0.9451 and 0.9540. Support levels are 0.9345 and 0.9295.

AUD/USD is trading at 0.9933. Resistances are located at 0.9960 and 1.0064. Support levels are 0.9854 and 0.9815.

The economic calendar is heavy today. Japan All Industries Activity data will be released at 04:30 GMT. Swiss Trade Balance report will be released at 07:00 GMT. German Producer Price Index data and German Consumer Climate report will be released at 07:00 GMT.  German Ifo Business Climate data will be released at 09:00 GMT. UK CBI Realized Sales report is due at 11:00 GMT. Statistics Canada will release Core Consumer Price Index figures at 12:00 GMT. U.S. US Building Permits and House Starts data will be released at 13:30 GMT. NZ Current Account report will be released at 21:45 GMT.