EUR/USD
EUR/USD trended lower, with shorter dated vols picking up ahead of the Eurogroup meeting. Even though option bias remains tilted towards EUR puts, there is a risk of an extended move higher (short squeeze) should the statement from the latest Eurogroup meeting indicate an agreement to provide Greece with more aid. In terms of technical levels, supports are seen at the 10DMA line at 1.2925 and then at the 200DMA line at 1.2823. On the other hand, resistance levels are seen at 1.3035/72 and then at the 21DMA upper Bollinger level at 1.3135.
GBP/USD
GBP/USD also trended lower and settled the session in close proximity to its intraday option expiry level at 1.6030 and with a net loss of around 100pips. In terms of UK related commentary, the latest KPMG/REC report on permanent placements showed a slight improvement in September rising to 49.7 from 48.4. In other data, the headline Lloyds employment confidence reading for September came in at -49 (Prev. -43), however analysts did note that the job security component eased to its lowest reading in almost three years. In terms of technical levels, supports are seen at the 21DMA lower Bollinger line at 1.6017, 1.5987 and then at 1.5960. On the other hand, resistance levels are seen at the 10DMA line at 1.6152 and then at the 21DMA line at 1.6164.
USD/JPY
USD/JPY settled lower, with risk-averse sentiment on the front foot throughout the session as market participants continued to fret over the slowdown in China and uncertainty surrounding the sovereign debt crisis in Europe. Sell stops were tripped on the break of 78.50 and then at 78.25, however the pair failed to make a convincing test on 78.00 level.
