EUR/USD: holding above 1.0900 despite US GDP

EUR/USD Current price: 1.0917

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

View Live Chart for the GBP/USD

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

View Live Chart for the USD/JPY

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

Share: Analysis feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.