EUR/USD Current price: 1.0945
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The American dollar trades lower across the board, with inflation ticking higher in China lifting investor's mood. At the beginning of the day, the official release showed that Chinese annual inflation rose to 1.5% from a previous 1.3%, surpassing expectations. In Europe, German trade surplus in October came out at €20.8B. The EUR/SD pair trades near its daily high of 1.0946 ahead of the US opening, and maintains the bullish tone seen on previous updates, moreover after breaking above 1.0880, now a key Fibonacci support. Technically, the 1 hour chart shows that the technical indicators remain above their mid-lines, whilst the price stands above its 20 SMA, although the advance lacks momentum. In the 4 hours chart, the technical readings also favor a bullish continuation, as the technical indicators head higher above their mid-lines while the price extends above its 20 SMA, all of which supports a test of the 1.1000 level.
Support levels: 1.0910 1.0880 1.0835
Resistance levels: 1.0950 1.1000 1.1040
GBP/USD Current price: 1.5086
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The GBP/USD pair approaches the 1.5100 level this Wednesday, helped by oil's price recovery, as the commodity has ended its latest bleeding and trades near $ 38.00 a barrel. The UK will release its trade balance data this Thursday, whilst the BOE will have its monthly economic meeting, anticipating some nice action for the Pound. In the meantime, the pair presents a short term bullish tone, as in the 1 hour chart, the price is above a bullish 20 SMA, while the technical indicators head higher, despite the RSI indicator is in overbought territory. In the 4 hours chart, the price has advanced above its 20 SMA, but the technical indicators have lost their upward strength around their mid-lines. Some additional gains beyond 1.5100 could see the pair extending up to 1.5160, where a daily descendant trend line coming from November high, converges with the 200 EMA.
Support levels: 1.5050 1.5010 1.4980
Resistance levels: 1.5100 1.5160 1.5200
USD/JPY Current price: 122.42
View Live Chart for the USD/JPY
Risking a bearish breakout. The USD/JPY pair accelerates its decline and trades dangerously close to the base of its range at 122.20. The Japanese currency has recovered its shine ever since the day started, as positive news from China helped improve confidence in the region. Also, the dollar is weaker amid a soft recovery in commodities, something that can be understood as corrective and therefore short lived. Nevertheless, the 1 hour chart shows that the price is well below the 100 and 200 SMAs, both converging around 123.00, whilst the technical indicators head lower in oversold territory. In the 4 hours chart, the technical indicators present a strong bearish momentum well into negative territory, risking a bearish breakout, should stops below 122.20 get triggered.
Support levels: 122.20 121.80 121.40
Resistance levels: 122.60 123.00 123.40
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