EUR/USD
The pair settled the week lower but crucially above the psychologically important 1.3000 level as market participants booked profits following a sharp rally after investors reacted positively to a deal which averted the so-called fiscal cliff. In addition to that, the USD index surged as market participants reacted to the FOMC minutes which suggested that policy easing measures may come to an end as early as this year. The minutes of the Fed's Dec. 11-12 policy meeting showed that officials were divided about when to halt the programs, with a few wanting to continue them until year-end, several others wanting to end the programs well before then and some wanting to halt them right away. In terms of technical levels, supports are seen at the 21DMA lower Bollinger level at 1.2945, followed by the 100DMA line at 1.2914. On the other hand, resistance levels are seen at the 21DMA line at 1.3139 and then at the 10DMA line at 1.3168
GBP/USD
The pair trended in tandem with EUR/USD throughout the week and settled lower as sentiment turned sour after the release of the minutes from most recent FOMC policy meeting showed a growing number of policy makers would like the QE program to end as early as this year. The pair also failed to benefit from EUR-diversification flows and instead, less than impressive macro data underpinned the bearish tone. In terms of technical levels, supports are seen at 1.6002, 1.5988 and then at 1.5962 which is Nov-28th low. On the other hand, resistance levels are seen at the 21DMA line at 1.6159 and then at the 21DMA upper Bollinger level at 1.6298.
USD/JPY
Broad-based JPY weakness was observed throughout the week as market participants came back to their desks for the first time this year in Tokyo and continued to price in further policy easing by the BoJ. Of note, SocGen sees USD/JPY rising to 97.00 by the end of 2013. In terms of technical levels, supports are seen at 87.47 which is the 61.8% retracement of 2010/11 decline and then the psychologically important 87.00 level. On the other hand, resistance levels are seen at 89.00/15 and then at 89.98 which is Jun-24th 2010 high.
Recommended Content
Editors’ Picks
GBP/USD bulls retain control near 1.3300 mark, highest since March 2022
The GBP/USD pair trades with a positive bias for the third straight day on Friday and hovers around the 1.3300 mark during the Asian session, just below its highest level since March 2022 touched the previous day.
EUR/USD grapples with higher ground as Fed cuts weigh on Greenback
EUR/USD found the high end on Thursday, holding fast to the 1.1150 level, though most of the pair’s bullish momentum comes from a broad-market selloff in the Greenback rather than any particular bullish fix in the Euro.
Gold consolidates weekly gains, with sight on $2,600 and beyond
Gold price is looking to build on the previous day’s rebound early Friday, consolidating weekly gains amid the overnight weakness in the US Dollar alongside the US Treasury bond yields. Traders now await the speeches from US Federal Reserve monetary policymakers for fresh hints on the central bank’s path forward on interest rates.
Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum
Shiba Inu remains strong on Friday after breaking above a symmetrical triangle pattern on Thursday. This breakout signals bullish momentum, further bolstered by a rise in daily new transactions that suggests a potential rally in the coming days.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.