EUR/USD Current price: 1.0606
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The American dollar eased against all of its major rivals this Tuesday, with the EUR/USD pair reaching a daily high of 1.0636 before settling around 1.0630. Early in the day, Europe released the Markit manufacturing PMIs showing that the recovery in the region gathered pace in November, with the final reading for November at 52.8, the highest since April 2014. In Germany, the final reading resulted at 52.9 from the previous estimate of 52.6. Also, the EU unemployment rate fell down to 10.7%, the lowest since January 2012. In the US on the other hand manufacturing posted its lowest in over two years, as the Markit index for November resulted at 52.8.
The EUR/USD pair is, however, far from confirming a reversal in its dominant bearish trend, as it has barely recovered 100 pips after falling over 900 in the previous two weeks. Additionally, with the ECB economic policy decision around the corner, there is a good chance that investors will remain side lined in the pair. Technically, the 4 hours chart shows that the price has extended beyond its 20 SMA, whilst the technical indicators have recovered above their mid-lines, although the Momentum indicator is losing its upward strength. The pair has set a high last November 25th at 1.0688 and is now the level to break to confirm additional gains this Wednesday.
Support levels: 1.0590 1.0550 1.0520
Resistance levels: 1.0688 1.0730 1.0770
EUR/JPY Current price: 130.58
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The EUR/JPY pair gained some ground this Wednesday, dragged higher for a recovery in the common currency, and closing the day higher for a second day in-a-row. The Japanese yen advanced early in the Asian session, as poor Chinese manufacturing data triggered some risk aversion, but the sentiment was quickly reverted during the European opening. Technically, the short term picture is mils bullish as in the 1 hour char, the price has advanced above the 100 and 200 SMAs, with the last offering an immediate support around 130.48, while the technical indicators are losing their upward strength near overbought levels, but still far from signaling a downward move. In the 4 hours chart, the RSI indicator maintains its bullish slope around 58, while the Momentum indicator consolidates in positive territory, indicating some further gains ahead, up to the 131.30 region, a key static resistance area.
Support levels: 130.40 130.00 129.65
Resistance levels: 130.90 131.30 131.80
GBP/USD Current price: 1.5079
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The GBP/USD closed the day with gains, although below the 1.5100 level that briefly overcome in the European morning. The pair traded as high as 1.5124, boosted by a positive outcome of the BOE street test's results, which showed that all of the country´s biggest banks passed the annual health check. The Markit Manufacturing PMI for November, however disappointed, down to 52.7 from a previous 55.2, weighing on the Pound and keeping it down for the rest of the day. Ahead of the Asian opening, the 1 hour chart for the pair shows that its currently developing around its 20 SMA, while the technical indicators are retreating their mid-lines, increasing the risk of a downward continuation. In the 4 hours chart, the price is moving back and forth around a bearish 20 SMA, while the Momentum indicator aims slightly higher around its 100 level, and the RSI indicator hovers around 50, failing to offer clear directional for the upcoming sessions.
Support levels: 1.5050 1.5010 1.4980
Resistance levels: 1.5105 1.5135 1.170
USD/JPY Current price: 122.87
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The USD/JPY pair failed to sustain gains above the 123.00 level, and ends the day around the 122.80 region, a handful of pips above a fresh weekly low set at 122.63. Weaker-than-expected US data helped the yen advancing against its American rival, although as in the case of the EUR, investors are waiting for some major economic events by the end of the week before deciding to establish a trend. From a technical point of view, the 1 hour chart shows that the price is a few pips above its 100 and 200 SMAs, both converging around 122.80, and offering an immediate support, while the technical indicators hold below their mid-lines, with no directional strength. In the 4 hours chart, the price is now a few pips below its 100 SMA after, whilst the technical indicators have lost their upward strength, but hold above around mid-lines.
Support levels: 122.60 122.20 121.70
Resistance levels: 123.40 123.75 124.40
AUD/USD Current price: 0.7334
View Live Chart for the AUD/USD
The AUD/USD pair surged to its highest in 7-weeks, trading near the high set at 0.7335 in the American afternoon. The Aussie got a boost early Asia as the RBA decided to leave its monetary policy unchanged, giving a lift to the Aussie, as the Central Bank removed the previous reference to "at this meeting" signaling that rates will remain unchanged for some time now. Nevertheless, the Central Bank left doors open for a rate cut if needed, yet the more hawkish than-expected tone was enough for the Aussie to rise against the greenback, later weakened by poor US data. Technically, the 1 hour chart shows that the price holds well above a bullish 20 SMA, whilst the technical indicators consolidate in overbought territory, with no signs of turning lower. In the 4 hours chart, the technical readings are losing their upward momentum in overbought territory, but also fail to suggest a bearish corrective move, supporting a continued advance, moreover if the price holds now above the 0.7300 level.
Support levels: 0.7280 0.7240 0.7200
Resistance levels: 0.7300 0.7335 0.7380
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