EUR/USD: dollar mixed near its highs

EUR/USD Current price: 1.0958

The EUR/USD pair set a fresh weekly high of 1.0960 ahead of the release of US Q3 GDP data, finally revised to 2.0% from 1.9% expected. The pair retreated some with the news, as despite below expected, the figures are still showing some solid growth in the country. Earlier in the day, Germany released the CFK consumer confidence survey up to 9.4 points for January compared with the 9.3 in December and signaling more optimistic expectations for the economy. Also in Germany, and according to official data, the index of import prices decreased by 3.5% in November 2015 compared with the corresponding month of the preceding year. From October 2015 to November 2015 the index fell by 0.2%, better than the previous reading and than market's expectations.

The pair remains near its daily high and maintains a short term bullish tone, as in the 1 hour chart, the technical indicators head north above their mid-lines, whilst the price has advanced further above its moving average, with the 20 SMA about to cross its 200 SMA towards the upside. In the 4 hours chart, the technical outlook is also bullish and the pair can rally up to the 1.1000 level, yet with a shortened week due to Christmas holidays, the most likely scenario is a shrinking range after the dust settles.

Support levels: 1.0945 1.0915 1.0880

Resistance levels: 1.1000 1.1045 1.1090

GBP/USD Current price: 1.4868

View Live Chart for the GPB/USD

The GBP/USD pair has extended its 8-month low by a few pips following the release of US data, down to 1.4860, and trades a few pips above the level ahead of the US opening, maintaining the dominant bearish tone seen on previous updates. Short term, the 1 hour chart shows that the price has extended further below a mild bearish 20 SMA, while the technical indicators are slowly gaining some bearish momentum, rather reflecting the limited intraday range than denying the bearish potential. In the 4 hours chart, the price has been once again contained by a bearish 20 SMA, indicating that bears maintain the lead and supporting some further declines for today.

Support levels: 1.4860 1.4815 1.4770

Resistance levels: 1.4885 1.4920 1.4950

USD/JPY Current price: 120.93

View Live Chart for the USD/JPY

Still bearish, but little chances of a downside breakout. The USD/JPY pair hovers around the 121.00 level, hardly affected by US macroeconomic readings. The third quarter GDP was finally revised lower towards 2.0% from a previous estimate of 2.1%, although the result beat expectations of a 1.9% growth. Personal consumption expenditures rose in the same quarter, although the dollar failed to rally with the news. In fact, thin markets are still the main theme, and it would likely extend until early January. In the meantime, the technical picture is still bearish, as in the 1 hour hart, the price develops below its moving averages whilst the technical indicators are barely bouncing from oversold territory. In the 4 hours chart, the Momentum indicator diverges from price action, as this last remains near the los, whilst the indicator has recovered up to its mid-line. The RSI indicator in this last time frame however, maintain the negative bias, supporting a downward continuation on a break below 120.70 the immediate support.

Support levels: 120.70 120.35 119.90

Resistance levels: 121.40 121.70 122.20

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