EUR/USD Current price: 1.1037
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Adding to yesterday ECB's announcement, the People Bank of China cut its benchmark lending rate and reserve requirements for banks during the European morning, in another attempt to boost local growth. Stocks markets are loving the easing announcements, with European indexes rallying to fresh 2-months highs and US indexes pointing to open with strong gains. Early data in the EU showed that growth in the region was quite strong at the beginning of the last quarter, as Services and Manufacturing PMIs in the region, beat expectations, with only the German manufacturing sector missing. The EUR remains subdued, breaking lower against the greenback and trading around the 1.1030 level ahead of the US opening.
The 1 hour chart shows that the price has briefly advanced above a bearish 20 SMA before resuming its slide, whilst the technical indicators turned sharply lower after correcting the extreme oversold readings reached after the ECB. In the 4 hours chart, the technical indicators have extended their declines to fresh lows in extreme oversold levels, pointing for a continued decline towards the key 1.1000 level, as long as 1.1080 now attracts selling interest. Further declines below 1.1000 should fuel the bearish momentum in the pair, and see it extending down to 1.0960 before the end of the day
Support levels: 1.1000 1.0960 1.0920
Resistance levels: 1.1080 1.1120 1.1160
GBP/USD Current price: 1.5387
View Live Chart for the GPB/USD
The GBP/USD pair trades in a tight range this Friday, with no macroeconomic data in the UK to affect the Pound. The pair attempted to recover earlier in the day, but selling interest around 1.5415, the former weekly low, capped the upside, suggesting the pair may now extend its decline. Technically, the 1 hour chart shows that the price is now below its 20 SMA, whilst the technical indicators present tepid bearish slopes below their mid-lines, not yet confirming a downward continuation. In the 4 hours chart, the 20 SMA heads strongly lower above the current level, whilst the technical indicators present limited bearish potential below their mid-lines. Should the price accelerate below yesterday's low, the decline can extend down to the 1.5320 price zone, the 38.2% retracement of its latest daily decline.
Support levels: 1.5365 1.5320 1.5280
Resistance levels: 1.5415 1.5450 1.5495
USD/JPY Current price: 120.88
View Live Chart for the USD/JPY
Heading towards 121.35. The USD/JPY pair trades near its daily high set at 120.98, having bounced sharply from a low set at 120.22 early Europe. The pair is being supported by stocks, skyrocketing in Europe and the US as the PBoC decided to cut its benchmark lending rate. The surprise decision, following yesterday ECB's promise of more easing coming in December, is supporting a rally in the USD/JPY towards the top its latest range at 121.35. The technical picture is bullish in the short term, given that the 100 SMA continues advancing above the 200 SMA, both below the current level, whilst the technical indicators recovered their bullish tone after erasing the extreme overbought readings reached last Thursday. In the 4 hours chart, the technical indicators have corrected their extreme overbought readings, and resumed their advances. supporting the shorter term view. Given that the level has contained advances since late August, stops above it should be large, and if triggered, should see the upward momentum accelerating, up to 121.80/122.00 during the upcoming hours.
Support levels: 120.35 120.00 119.70
Resistance levels: 120.90 121.35 121.80
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