EUR/USD Current price: 1.0854
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The American dollar closed the day generally higher against all of its major rivals, albeit the EUR/USD pair trimmed most of its intraday losses in the US session. The pair fell down to 1.0795, its lowest ever since ECB's Draghi announced a soft extension of QE last Thursday, and triggered the largest EUR advance in over five years. Ever since, the common currency has been presenting a bullish tone that persists, despite the pair ending the day in the red. The macroeconomic calendar was soft, with Germany releasing its Industrial Production data for October, up by 0.2% compared to a month before, but flat on the year. The intraday decline however, can be blamed on a strong advance in European equities at the beginning of the day, later erased.
The intraday technical picture is far from suggesting a downward continuation, and the pair seems ready to extend its recovery, given that in the 1 hour chart, the price is back above its 20 SMA, while the RSI indicator aims higher around 53. In the 4 hours chart, the Momentum indicator has returned to 100, presenting now a strong bearish slope, but rather in line with the latest retracement than suggesting further declines. In this last time frame, the pair has managed to bounce from a strongly bullish 20 SMA, how around 1.0805, while the RSI indicator hovers around 54, reflecting that bulls remain on the drivers' seat.
Support levels: 1.0835 1.0805 1.0780
Resistance levels: 1.0880 1.0910 1.0945
EUR/JPY Current price: 133.75
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The EUR/JPY pair traded lower in range this Monday, in line with the EUR/USD behavior. The pair entered a consolidative stage ever since reaching its 100 DMA for the first time in over a month following the latest ECB's economic policy decision, currently at 134.25, with buyers aligner around 133.30, a strong long term static support. The short term technical picture is neutral-to-bullish, with the pair holding well above its 100 and 200 SMAs, and the technical indicators aiming higher around their mid-lines, lacking, however, momentum at the time being. In the 4 hours chart, the RSI indicator resumed its advance around 65 after correcting the extreme overbought readings reached last week, while the 100 SMA is slowly advancing below the 200 SMA, both well below the current level, still playing catching up with the latest will advance.
Support levels: 133.65 133.30 132.80
Resistance levels: 134.10 134.60 135.00
GBP/USD Current price: 1.5057
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The British Pound weakened towards a key support against the greenback at 1.5050, and the GBP/USD pair ended the day barely above it. There were no fundamental releases in the UK, and the calendar in the kingdom will remain pretty light until next Thursday, when the Bank of England will have its monthly economic meeting. This Tuesday, Industrial and Manufacturing data for October may help the Pound recovering, as market's expectations are of a slight gain. Technically however, the short term picture maintains the risk towards the downside, as in the 1 hour chart, the 20 SMA presents a strong bearish slope well above the current level, whilst the technical indicators gain bearish inclination below their mid-lines. In the 4 hours chart, the price is trying to break below its 20 SMA, while the Momentum indicator heads sharply lower towards its mid-line, but remains above it, and the RSI indicator heads steadily lower around 47, favoring another test of the critical 1.5000 figure.
Support levels: 1.5050 1.5010 1.4980
Resistance levels: 1.5125 1.5160 1.5190
USD/JPY Current price: 123.26
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The Japanese yen closed the day slightly lower against its American rival, with the pair having traded as high as 123.47 early Europe, following a sharp advance in stocks. The pair continues to trade within a well-defined range between 122.20 and 123.75 established early November. During the upcoming Asian session, Japan will release its final revision of its Q3 GDP figures, expected to show a 0.1% growth against a previous estimation of a 0.2% decline, but will hardly help the JPY advance beyond the mentioned 122.20 level. Technically, the 1 hour chart shows that the technical indicators are hovering around their mid-lines, whilst the price holds above its 100 and 200 SMAs that present little directional strength at the time being. In the 4 hours chart, the bias is neutral-to-bullish, as the price holds in the upper half of its latest range and above the 100 SMA, while the technical indicators aim higher around their mid-lines.
Support levels: 123.00 122.60 122.20
Resistance levels: 123.40 123.75 124.10
AUD/USD Current price: 0.7265
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The Australian dollar fell to its lowest in four days against the greenback, as commodities plummeted on oil dropping to fresh year lows. During the upcoming Asian session, Australia will release some minor confidence indexes, but the AUD direction will depend mostly on Chinese trade balance figures. A disappointing result in November data will weight further on the commodity related currency, and the AUD/USD may continue its steep decline, particularly on a break below 0.7240. Trading a few pips above its daily low, the 1 hour chart shows that the technical indicators maintain their bearish slopes, despite being now in oversold territory, while the 20 SMA has accelerated its decline well above the current level. In the 4 hours chart, the pair has fallen well below a now bearish 20 SMA, while the RSI indicator maintains a strong bearish slope around 40. In this last chart however, the Momentum indicator is recovering in negative territory, which at least should limit the downside in the short term.
Support levels: 0.7240 0.7200 0.7165
Resistance levels: 0.7290 0.7335 0.7370
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