EUR/USD Current price: 1.0593

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The American dollar ended the week sharply higher against all of it major rivals, helped by plummeting gold´s prices, and renewed fears of a Chinese economic slowdown. The EUR/USD pair closed the week below the 1.0600 level, the lowest since March, ahead of crucial macroeconomic events that will take place this week,  including an ECB economic policy meeting, and the US Nonfarm Payroll report. The ECB has largely anticipated that it will review the QE extension in December, but last week, markets' talks pointed also for further negative deposit rates. The common currency traded as low as 1.0567 last Friday, holding a couple of pips above its recent 7-month low, but maintaining the strong bearish tone.

For this week, the pair will clearly depend on macro figures, and how market's players understand them. But as long as the imbalance between Central Banks keeps widening, the risk will remain towards the downside, with a possible test of this year high during the upcoming days. Technically, the 4 chart shows that the technical readings remain in bearish territory, albeit lack directional strength at the time being, with the 20 SMA offering an immediate resistance around 1.0620. In the daily chart, the 20 SMA maintains a strong bearish slope above the current level, whilst the Momentum indicator heads south below the 100 level and the RSI indicator hovers around29, in line with the shorter term outlook. 

Support levels: 1.0550 1.0520 1.9485

Resistance levels: 1.0620 1.0660 1.0695


EUR/JPY Current price: 130.08

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The EUR/JPY pair closed the day unchanged a few pips above the 130.00 figure, having, however, extended its decline to 129.65 a fresh 7-month low, during the Asian session, but the pair recovered the lost ground during the American afternoon. Anyway the pair mains a bearish bias as in the 4 hours chart the price remains far below its 100 and SMAs, both clearly bearish, whilst the technical indicators have turned south around their mid-lines. In the daily chart, the 100 SMA is crossing below the 200 SMA around 135.20 for the first time since mid August, rather reflecting the ongoing negative tone than suggesting further declines. In the same chart, the RSI indicator heads slightly lower around 31, while the Momentum indicator presents a tepid bearish slope below its 100 level, all of which maintains the risk towards the downside.

Support levels: 129.65 129.20 128.80

Resistance levels: 130.55 130.90 131.30 


GBP/USD Current price: 1.5034

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The GBP/USD pair closed in the red for a second week in-a-row, completing a 100% retracement to the lows posted early November, following a dovish BOE and a strong US employment report. On Friday, the revision of the Q3 GDP readings failed to support the Pound, resulting unchanged at 0.5% quarterly basis. The GBP/USD pair closed the week at 1.5034 and is positioned to extend its decline, as the 4 hours chart shows that the pair has been unable to recover above a bearish 20 SMA, while the Momentum indicator is turning south below its 100 level and the RSI indicator present a strong bearish slope near oversold readings, all of which supports further declines. In the daily chart the technical indicators presents strong bearish slopes below their mid-lines, whilst the price has extended further lower below its 20 SMA, currently around 1.5160. The 1.5000/20 region provides an immediate strong static support region, with a break below it required to signal a stepper decline, pointing for a test of 1.4850 as the first relevant bearish target. 

Support levels: 1.5050 1.5010 1.4980

Resistance levels: 1.5135 1.5160 1.5190 


USD/JPY Current price: 122.59

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The USD/JPY pair spent last week trapped in a 100 pips range, and closed it flat at 122.80. Early Friday, Japan released its October inflation figures, slightly worse than the previous month readings, as the  core CPI in Tokyo printed flat for November and nationwide inflation (excluding food and energy) fell 0.2% to +0.7 y/y. The pair continued to find buying on dips towards the 122.20 level, although remained unable to advance beyond the 123.00 figure. Given that the upcoming week will be fulfilled with macroeconomic releases, the pair may well break its range, particularly by the end of the week with the release of US employment data for November. In the meantime, the range will likely prevail. Daily basis, the technical picture is neutral-to-bullish, given that the price is holding above its moving averages that anyway lack directional strength, whilst the technical indicators aim slightly higher around their mid-lines. Some steady gains above 123.80 however, are required to confirm a more constructive bullish outlook.  In the 4 hours chart and for the short term, the price is hovering around a bullish 100 SMA, while the technical indicators have turned lower around their mid-lines, not yet confirming a downward move. 

Support levels: 122.20 121.70 121.35

Resistance levels: 123.00 123.40 123.75 


AUD/USD Current price: 0.7191

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The  AUD/USD pair closed last Friday a few pips below the 0.7200 level, giving up is early gains amid a slump in gold prices and poor local figures. Australian capex numbers were the worst in  over 30 years, with  private capital expenditures falling  9.2% compared to the -2.9% expected. The Reserve Bank of Australia will have its economic policy meeting next Tuesday, and it will release its GDP figures on Wednesday, which can be a make it or break it for the latest upward strength in the Aussie. With the dollar generally higher, seems unlikely that the pair can rally sharply higher, but as long as 0.7000 holds, the downside potential will be quite limited. From a technical point of view, the daily chart shows that the upward tone momentum has eased, but that the pair is far from suggesting a bearish move, given that the price is well above its 20 SMA and that the technical indicators are far above their mid-lines. In the 4 hours chart, the 20 SMA stands above the current level, offering an immediate resistance around 0.7240, while the technical indicators are aiming higher, but below their mid-lines. 

Support levels: 0.7150 0.7110 0.7070

Resistance levels: 0.7240 0.7285 0.7330 

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