EUR/USD: back to its comfort zone

EUR/USD Current price: 1.0721

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The American dollar ended the day lower against all of its major rivals, as the positive mood among worldwide investors grew following the release of the latest US FOMC Minutes. Dollar bulls unwind positions for riskier assets, and lackluster US macroeconomic data helped the greenback to fall. Weekly unemployment claims, in the week ended Nov 13, met expectations printing 271K, whilst the Conference Board Leading Economic Index increased 0.6% in October to 124.1, following a 0.1% decline in September, and a 0.1% decline in August. 

The EUR/USD pair surged up to 1.0762, before retracing some, but holds to most of its recent gains around its last week comfort zone, around 1.0740/50. The 1 hour chart shows that the pair is founding some buying interest around its 200 SMA, whilst the 20 SMA heads higher below the current level. In the same chart, the technical indicators have retreated towards their mid-lines alongside with price, but are far from suggesting a bearish continuation. In the 4 hours chart, the price has advanced above its 20 SMA, whilst the technical indicators are losing their upward strength above their mid-lines, supporting some consolidation ahead before the next move. Sellers have surged on approaches to the 1.0800 level, which means a steady gains beyond it is required to confirm additional gains for this Friday. 

Support levels: 1.0680 1.0630 1.0585 

Resistance levels: 1.0720 1.0750 1.0790

GBP/USD Current price: 1.5293

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The GBP/USD pair rallied up to a fresh 2-week high of 1.5335 in the American afternoon, despite soft UK macroeconomic data released during the European morning. According to official data, the UK retail sales fell by 0.6% in October, compared to September this year, and rose by 3.8% against market expectations of  4.2% advance. The pair retreated back below the 1.5300 figure, but maintains a positive tone short term that supports further gains for this last day of the week, as the 1 hour chart shows that the technical indicators are resuming their advances after approaching their mid-lines, whist the price is still well above a bullish 20 SMA. In the 4 hours chart, the price has advanced above its 200 EMA, currently at 1.5280, for their first time since November 5th, whilst the 20 SMA is slowly gaining upward slope well below the current level. In this last time frame, the technical indicators are losing their upward strength near overbought levels, but are far from suggesting a downward move ahead. The price has briefly advanced above the 61.8% retracement of its latest decline at 1.5320, the immediate resistance, with a break above it required to confirm further gains towards fresh highs.

Support levels:  15280 1.5245 1.5200 

Resistance levels: 1.5320 1.5355 11.5390

USD/JPY Current price: 123.78

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The Japanese yen strengthened this Thursday, as the Bank of Japan decided to keep its current pace of monetary stimulus unchanged in its monthly economic meeting. The Central Bank also kept intact its assessment that the economy will continue to recover at a moderate pace, whilst reiterating that they will keep on increasing their monetary base to reach the 2.0% inflation target. The broad dollar weakness later in the day did the rest, and the USD/JPY pair plunged to 122.61. Trading a few pips above the level, the short term picture is bearish, as in the 1 hour chart, the price has fallen down below the 100 and 200 SMAs whilst the technical indicators have resumed their declines after a limited upward corrective movement from oversold readings. In the 4 hours chart, the technical indicators are heading sharply lower below their mid-lines, supporting further declines particularly on a break below 122.20,this week low and the immediate support. 

Support levels: 122.20 121.70 121.35 

Resistance levels: 123.00 123.40 123.75 

AUD/USD Current price: 0.7193

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The Australian dollar was among the most benefited by improved risk sentiment, recovering up to 0.7214 against its American rival, and closing the day around the 0.7200 figure, the highest for this November. The 1 hour chart for the AUD/USD pair shows that the price holds near its highs and well above a bullish 20 SMA, whilst the technical indicators have retreated from extreme overbought readings, but are losing their bearish strength well above their mid-lines, suggesting the ongoing decline is barely corrective. In the 4 hours chart, the price is above its 20 and 200 EMAs, while the technical indicators are retreating some from overbought levels. The pair has a strong static resistance at 0.7240 and a break above it should lead to further gains for this Friday, whilst failure around the level should see the pair resuming its decline back towards the 0.7000 figure.

Support levels: 0.7150 0.7110 0.7070 

Resistance levels: 0.7240 0.7285 0.7330