EUR/USD: Still eyeing US fiscal cliff

EUR/USD Current price: 1.2992

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Market attention continues to be focused on the US fiscal cliff, as Republicans and Democrats each blame the other for a standoff that could lead to more than $600 billion in tax increases and spending cuts in January, with the dollar weak across the board. The EUR/USD however, is finding hard to take the 1.3000 level, as things seem not much better in Europe: over the weekend, Spanish PM Rajoy said it will be hard to meet the countries deficit target, reviving hopes of a bailout request. Greece rescue by a hair also erodes confidence in the common currency. 

With Central Banks and US NFP this week, market will likely remain choppy over this Monday, with the EUR/USD losing some upward momentum according to the hourly chart, as indicators head south below their midlines, although price stands pretty much on Friday’s close. 1.3030 comes as immediate resistance level, with several daily highs and lows gathered around and only above this last the pair will be able to extend its gains this Monday. The downside is still being limited by 1.2940/70 area, and slides below are quite unlikely for today.

Support levels: 1.2970 1.2945 1.2910 

Resistance levels: 1.3000 1.3030 1.3080

GBP/USD Current price: 1.6016

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The GBP/USD stands above 1.6000, having approached the roof of the daily descendant channel past Friday, around 1.6065 today. The hourly chart looks bearish, with price below 20 SMA and indicators heading lower in negative territory, yet buyers have been coming to the rescue around 1.5980/90 immediate support level. In the 4 hours chart technical readings hold a neutral stance, which will likely help to keep the upside limited today.

Support levels:  1.5985 1.5950 1.5920

Resistance levels: 1.6030 1.6065 1.6090

USD/JPY Current price: 82.36

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Quoting around recent highs, the USD/JPY is losing some of its shine as the week starts: latest COT report shows net short yen positions, reached 5 years high, and COT is usually understood as a contrarian indicator, suggesting yen crosses may come down this week. The USD/JPY hourly chart, favors the downside, with indicators heading north below their midlines, yet price holding above 100 and 200 SMA, both around 82.20 and immediate support area. Below this last, the fall may extend towards 81.50, 61.8% of the year fall. If this last gives up, the 80.80 level comes at sight for this week.

Support levels:  82.20 81.80 81.50

Resistance levels: 82.60 82.85 83.10 

AUD/USD: Current price: 1.0426

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AUD/USD develops inside a triangle, pushing higher as price failed to break 1.0400 support last Friday. Latest news, shown Chinese PMI grew for the second month in a row, which should favor the Aussie these days. In the hourly chart, the pair presents a neutral stance with price around a flat 20 SMA and indicators around their midlines, while in the 4 hours chart the stance is pretty much the same, giving no clear clues on direction. Price needs now to settle above 1.0430 immediate resistance level, to be able to extend the upside today.

Support levels: 1.0400 1.0370 1.0330 

Resistance levels: 1.0435 1.0480 1.0510 

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