EUR/USD
The release of better than expected macro economic data from Germany, as well as decent demand for the latest debt offering by the Spanish Treasury failed to prop up the pair as market participants continued to pare longs and turned more bullish on the USD. The surge by the USD index, which gained around 1% this week was partly driven by the release of the latest FOMC minutes, which showed that several on FOMC said the Fed should be prepared to vary pace of QE. In terms of technical levels, supports are seen at the 100DMA line at 1.3121, 1.3039 which is the Jan-10th low and then at 1.3018 which is the Jan-7th low. On the other hand, resistance levels are seen at the 55DMA line at 1.3289, the 10DMA line at 1.3343 and then at the 21DMA line at 1.3429.
GBP/USD
USD/JPY
The pair settled lower this week, as market participants booked profits and as risk averse flows dominated following the release of the most recent FOMC policy meeting minutes. In terms of Japan specific commentary, it was reported that Japan's main opposition DPJ would not automatically reject former top financial bureaucrat Muto as the next BoJ governor if his name is proposed according to those familiar with the matter. Separately, Japanese Finance Minister Aso said there are no plans to buy foreign bonds with PM Abe saying that the need for government-private fund to buy foreign bonds has lessened. Aso also said that the talk of currency wars is going too far and the JPY weakened without intervention. In terms of technical levels, supports are seen at 92.77/22 and then at 92.17 which is the Feb-8th low. On the other hand, resistance levels are seen at 93.87, 94.05 which is the Feb-20th high and then at 94.22 which is the Feb-18th high.
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