EUR/USD: correcting lower, more gains above 1.0810
|EUR/USD Current price: 1.0733
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The EUR/USD pair retreats modestly this Tuesday, with the dollar modestly higher across the board. The American currency was weighed by a mixed US employment report released last Friday in where wages surprised to the downside. Risk aversion at the weekly opening, gave the greenback a breath, but it was short-lived: the currency reversed course and fell to multi-week lows against its European rivals, with the EUR/USD pair trading as high as 1.0796, its highest in three weeks. The revision of the EU Q3 GDP came in unchanged at 0.3%, doing little to affect the pair.
Technically, the 1 hour chart, shows that the price is pressuring its daily lows and that indicators have entered bearish territory heading modestly lower, while the price is below the 20 SMA, favoring a new leg lower towards 1.0700, the 23.6% retracement of the latest daily slump. In the 4 hours chart, technical indicators have corrected from overbought readings, but are far from supporting a downward move, while the 20 SMA heads higher above the 100 SMA and with both below the current level, maintaining the risk towards the upside. Anyway, the pair needs to advance above the 1.0800/10 region, the 38.2% retracement of the same decline, to be able to advance further, towards the 1.0840/60 price zone.
Support levels: 1.0730 1.0700 1.0660
Resistance levels: 1.0775 1.0810 1.0850
GBP/USD Current price: 1.2749
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The GBP/USD pair maintains its positive tone, extending its advance up to 1.2774 this Tuesday and holding nearby ahead of the US opening. There were no news coming from the UK this morning, although the High Court is hearing government´s arguments as to whether the parliament of the government has the authority to trigger the Brexit. Short term, the upside remains favored as in the 1 hour chart, the price is bouncing from a modestly bullish 20 SMA, while technical indicators have resumed their advances within positive territory, although there's no momentum, amid the limited intraday range. In the 4 hours chart, technical indicators have turned flat near overbought readings, while the 20 SMA maintains a sharp bullish slope well below the current level, in line with the shorter term outlook.
Support levels: 1.2710 1.2670 1.2630
Resistance levels: 1.2795 1.2830 1.2860
USD/JPY Current price: 113.92
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Flat around 114.00. The USD/JPY pair continues seesawing around the 114.00 level, pretty much flat daily basis. There were no major news coming from Japan, while worse-than-expected US trade deficit for October, down to $.42.60B from a previously revised deficit of $36.20B is pushing the JPY modestly higher ahead of the US opening. The short term picture is neutral-to-bearish, as in the 1 hour chart, the price is stuck around its 100 SMA, while technical indicators have lost their bearish strength within positive territory after reaching their mid-lines. In the 4 hours chart, the technical picture is also neutral, as technical indicators head nowhere around their mid-lines, although given that the 100 SMA continued rallying below the current price, the risk of a deeper bearish move is limited. A bearish move will remain as corrective as long as the price holds above 112.80, this week's low, while a break above 114.90 is required to confirm a new leg higher, towards the 116.60 price zone.
Support levels: 113.65 113.20 112.80
Resistance levels: 114.10 114.45 114.90
AUD/USD Current price: 0.7452
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The AUD/USD pair fell after the RBA monthly economic policy decision, as the Central Bank left its cash rate target unchanged at 1.50%, but Governor Lowe, expressed his concerns over the situation of the labor market, as part-time employment remains significant. Also, he maintained a cautious approach on inflation, despite the latest inflation report surprised to the upside, up to 1.3% yearly basis. The pair printed a daily low of 0.7431 before recovering some ground, still unable to find a clear direction. Technically, the 1 hour chart shows that the price remains below a bearish 20 SMA, while technical indicators are unable to advance beyond their mid-lines, turning now modestly lower, and suggesting scarce buying interest. In the 4 hours chart, technical indicators have turned flat above within positive territory, while the 20 SMA has turned higher below the current level, but remains below its previous highs as the price remains below its 200 EMA, also suggesting limited buying interest around the pair.
Support levels: 0.7420 0.7375 0.7330
Resistance levels: 0.7465 0.7500 0.7540
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