EUR/USD Current price: 1.0606
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The dollar trades generally lower this Tuesday, yet the EUR can manage to attract buyers, not even on positive EU data. Early in the London session the Markit manufacturing PMIs showed that the EU recovery gathered pace in November, with the final adjusted reading for November at 52.8, the highest since April 2014. In Germany, the final reading resulted at 52.9 from the previous estimate of 52.6. Also, the EU unemployment rate fell down to 10.7%, the lowest since January 2012. The positive readings sent the EUR/USD pair up to 1.0618, its daily high, but the price quickly retraced back below the 1.0600 figure, standing around it ahead of the US opening. After Wall Street opening, investors will known the final readings of the November manufacturing PMIs, which if they result positive, can revert the negative tone of the American currency.
In the meantime, the technical picture is mild positive, given that the price is a few pips above its 100 SMA for the first time this week, while the 20 SMA heads higher below the current level. In the same chart, the technical indicators head higher well above their mid-lines, limiting chances of a bearish move, but not yet confirming an upward continuation. In the 4 hours chart, the price is a couple of pips above a still bearish 20 SMA, while the technical indicators aim higher in neutral territory, also limiting declines, although lacking enough strength to confirm an upward continuation.
Support levels: 1.0550 1.0520 1.0485
Resistance levels: 1.0620 1.0660 1.0695
GBP/USD Current price: 1.5067
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The GB/USD pair erased most of its intraday gains, achieved after the release of the BOE stress test's results, showing that all of the country´s biggest banks passed the annual health check. The pair rose up to 1.5124, but retreated on a worse-than-expected Markit Manufacturing PMI for November, down to 52.7 from a previous 55.2. The 1 hour chart for the pair shows that its currently developing below its 20 SMA, while the technical indicators are posting tepid bounces from their mid-lines, still risking a downward continuation. In the 4 hours chart, the price is hovering around a bearish 20 SMA, while the Momentum indicator aims slightly higher around its 100 level, and the RSI indicator aims lower at 47, failing to offer clear directional clues at the time being.
Support levels: 1.5050 1.5010 1.4980
Resistance levels: 1.5105 1.5135 1.170
USD/JPY Current price: 123.16
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Still in wait and see mode. The Japanese yen firmed up at the beginning of the Asian session, with the USD/JPY pair down to 122.63, o broad dollar's weakness. The pair however, recovered early Europe, and regained the 123.00 level, although still unable to confirm an upward continuation for this Tuesday. From a technical point of view, the 1 hour chart shows that the price is well above its 100 and 200 SMAs, both converging around 122.80, while the technical indicators diverge from price action, heading lower around their mid-lines. In the 4 hours chart, the price has managed to recover above its 100 SMA after briefly falling below it, whilst the technical indicators have lost their upward strength, but hold above their mid-lines. The pair remains in wait and see mode, and will likely remain so for the next 48 hours, as the market will wait for the ECB meeting and the US NFP report, before pushing prices too far away.
Support levels: 122.60 122.20 121.70
Resistance levels: 123.40 123.75 124.40
AUD/USD Current price: 0.7290
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The RBA decided to left its monetary policy unchanged, giving a lift to the Aussie, as the Central Bank removed the previous reference to "at this meeting" signaling that rates will remain unchanged for some time now. Nevertheless, the Central Bank left doors open for a rate cut if needed, yet the more hawkish than-expected tone was enough for the Aussie to rise up to 0.7298 against the greenback. Trading a few pips below the mentioned high, the pair maintains a bullish tone, as in the 1 hour chart, the price holds well above a bullish 20 SMA, whilst the technical indicators consolidate in overbought territory, with no signs of turning south. In the 4 hours chart, the technical readings maintain a strong upward momentum well above their mid-lines, supporting additional gains on a upward extension above the 07300 level.
Support levels: 0.7280 0.7240 0.7200
Resistance levels: 0.7300 0.7335 0.7380
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