EUR/USD Current price: 1.0606
View Live Chart for the EUR/USD
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
View Live Chart for the EUR/JPY
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
View Live Chart for the GPB/USD
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
View Live Chart for the USD/JPY
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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.