EUR/USD
The pair settled lower as market participants reacted to the latest sovereign rating downgrade in Europe. This time it was France’s turn, with Moody’s rating agency finally announcing that the country’s credit profile no longer deserves AAA rating and thus cut the credit rating by one notch to Aa1. Moody's said France's long-term growth outlook hit by structural challenges and France has had a gradual and sustained loss of competitiveness. Moody's also added that the limited magnitude of rate cut reflects the French government's ongoing reform programme and long-term growth perspectives. In terms of technical levels, supports are seen at the 10DMA line at 1.2747 and then at 1.2691/62. On the other hand, resistance levels are seen at 1the 21DMA line at 1.2836 and then at 1.2950/83.GBP/USD
The pair settled the session little changed, with safe-haven related flows following French sovereign rating downgrade supporting the pair ahead of the eagerly awaited release of the most recent policy meeting minutes on Wednesday. In terms of technical levels, supports are seen at the 200DMA line at 1.5853 and then at 1.5828. On the other hand, resistance levels are seen at the 21DMA line at 1.5982 and then at 1.6020.USD/JPY
Even though the BoJ refrained from launching fresh easing measures, the pair still settled higher as it widely expected that Abe will push for more aggressive easing in the future. In terms of technical levels, supports are seen at 81.14/09 and then at 80.89. On the other hand, resistance levels are seen at 81.78, 82.00 and then at 82.56.
