EUR/USD Current price: 1.0581
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After a limited upward move at the beginning of the day, the EUR/USD pair plummeted to a fresh 7-month low of 1.0578, on renewed speculation the ECB will extend its facilities programs next December. Local share markets jumped, commodities eased, and the common currency plunged across the board. The pair bounced back towards the 1.0600 level, but was unable to recover the level ahead of the release of US data. The ECB is having its an economic policy meeting next week, and investors are considering that even negative rates can be announced then. In the US, Durable Goods Orders in October beat expectations, rising 3.0% from a previous 1.2% decline, while weekly unemployment claims fell to 260K, against 270K expected. Core PCE remained muted at 1.3%, while personal spending grew less than expected in the same month.
Nothing shockingly positive, yet all dollar supportive: the EUR/USD pair extended its decline down to 1.0575 and maintains a strong bearish tone in the short term, as in the 1 hour chart, the price is well below its moving averages, whilst the technical indicators head sharply lower near oversold levels. In the 4 hours chart, the technical indicators head south below their mid-lines, whilst the price is currently developing below a mild bearish 20 SMA, supporting further declines towards 1.0550 in the short term, but eyeing the year low of 1.0460 for the upcoming days.
Support levels: 1.0550 1.0520 1.0490
Resistance levels: 1.0590 1.0630 1.0660
GBP/USD Current price: 1.5092
View Live Chart for the GPB/USD
The Pound suffered a strong set back early Wednesday, hit by policymakers comments in the Autumn Statement, an update of the economic outlook and a preview of the government budget for 2016. The GBP/USD pair initially fell down to 1.5058 after failing to extend beyond 1.5115 earlier on the day, as a rate hike in the UK is depending on what the FED will do and when. The pair however, later bounced as 2016 GDP growth forecast was raised to 2.4% from 2.3%, but remains below the 1.5100 level. Technically, the 1 hour chart shows that the price is back above its 20 SMA, whilst the technical indicators recovered positive territory, suggesting strong buying interest defending the 1.5000 mark. In the 4 hours chart, however, the technical picture is still quite bearish, with the price below a strongly bearish 20 SMA, and the technical indicators barely bouncing from oversold levels, implying limited upward potential for the upcoming hours.
Support levels: 1.5050 1.5010 1.4980
Resistance levels: 1.5135 1.5160 1.5190
USD/JPY Current price: 122.85
View Live Chart for the USD/JPY
Recovering from key support. The USD/JPY pair started the day falling down to 122.25, a few pips above the base of these last 3-weeks range, but bounced over 60 pips as risk sentiment pushed stocks sharply higher, and the 1 hour chart shows that the price is back approaching the 123.00 level, with the price above its 100 SMA and the technical indicators heading south above their mid-lines. In the 4 hours chart, the technical indicators turned higher, but remain below their mid-lines, whilst the price is aiming to recover above its 100 SMA. Should the ongoing rally extend beyond 123.00, the pair can continue advancing, moreover it US stocks follow their European counterparts, towards the recent highs set at 123.70/80.
Support levels: 122.60 122.20 121.70
Resistance levels: 123.00 123.40 123.75
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