EUR/USD: holding above 1.0900 despite US GDP

EUR/USD Current price: 1.0917

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The EUR/USD pair advanced modestly intraday, recovering above the 1.0900 level early Europe,  but holding not far away from it, as the market waited for the US advanced Q3 GDP readings. Germany brought some good news, as according to official data, the inflation rate  as measured by the consumer price index is expected to be +0.8% in October 2016, when compared to a year before, in line with market's expectations, while the monthly reading came in at 0.2%, slightly better than expected. Still far from the 2% Central Bank target for the region, the news was not enough to fueled the common currency.

US GDP came in at 2.9%, much better than the 2.5% expected or the 1.4% previous, sending the USD initially higher against all of its major rivals. The EUR, however, remained reluctant to give up, holding above the 1.0900 level, with commodity currencies and the yen being the weakest. Also, the US released its latest personal consumption figures, slightly better than expected, although wages according to the employment cost index, remained flat in the third quarter, as the employment cost index came in flat a 0.6%.

The EUR/USD short term picture shows that the price is hovering around its struggling to advance beyond its 200 SMA, while technical indicators are turning south within positive territory,  maintaining the upside limited. In the 4 hours chart, the price remains above a modestly bullish 20 SMA, but the Momentum indicator turned south above its 100 level, in line with the shorter term view. The pair needs to break below 1.0890 to extend lower, with 1.0840 as the immediate target.

Support levels: 1.0890 1.0840 1.0800

Resistance levels: 1.0950 1.1010 1.1045

GBP/USD Current price: 1.2157

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The GBP/USD pair fell down to 1.2125 following the release of encouraging US data, bouncing afterwards, but maintaining a bearish tone anyway, as the Pound remains weak on Brexit woes. The short term picture for the pair favors a new leg lower, given that in the 1 hour chart, the price has broken, and remains contained by, a bearish 20 SMA, while technical indicators have failed to overcome their mid-lines with this recent recovery. In the 4 hours chart, the price is well below a horizontal 20 SMA, while technical indicators remain directionless within negative territory, neutral-to-bearish for this last day of the week. A break below the mentioned daily low, the pair will likely accelerate towards 1.2080, while below this last the pair will likely settle near the key 1.2000 region.

Support levels: 1.2125 1.2080 1.2030

Resistance levels: 1.2270 1.2300 1.2330

USD/JPY Current price: 105.17

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The USD/JPY pair toped at 105.50 this Friday, right after the release of better-than-expected US advanced Q3 GDP. According to preliminary estimates, the economy grew 2.9%, well below previous quarter final reading of 1.4%, r the 2.5% expected. Nevertheless, the pair is retreating towards the 105.00 level ahead of the US opening, with market still trying to figure out what to do next. The pair however, remains at multi-month highs, and the 1 hour chart shows that technical indicators have lost downward strength after reaching their mid-lines, whilst the price remains well above its 100 and 200 SMAs. In the 4 hours chart, technical indicators are retreating modestly from overbought levels, while the price remains well above its moving averages, limiting changes of a steeper decline. Previous weekly high at 104.85 is the immediate support, and the level to break to deny the bullish short term tone.

Support levels: 104.85 104.50 104.10

Resistance levels: 105.50 105.90 106.30