TRENDING:

XAU/USD

Silver

EUR/USD: strong selling interest persists

Valeria Bednarik FXStreet

EUR/USD Current price: 1.0891

View Live Chart for the EUR/USD

Majors pairs trade mixed this Monday, although not far from Friday's closing levels. The EUR/USD pair advanced up to 1.0899 during the European morning, after retesting 1.0859, past week's low at the beginning of the day. Data coming from Europe showed that growth accelerated in the region according to the preliminary October PMIs, with the EU Markit composite printing 53.7. Despite the good news, the ECB is largely expected to extend its QE program next December, enough to maintain the upside limited in the pair.
Later today, a couple of FED speakers may imprint some life to the greenback, although the center of attention will be the October preliminary US Markit manufacturing PMI, expected at 51.6 from previous 51.5.

Technically, the short term picture for the pair is modestly positive, given that in the 1 hour chart, the price is above a now modestly bullish 20 SMA, while technical indicators are aiming modestly higher within positive territory, although below their daily highs, indicating limited buying interest. In the 4 hours chart, however, technical readings present a strong bearish potential, given that the price is developing well below a bearish 20 SMA, whilst technical indicators have resumed their slides after correcting oversold readings.

Support levels: 1.0870 1.0840 1.0800

Resistance levels: 1.0910 1.0950 1.1000

GBP/USD Current price: 1.2239

View Live Chart for the GBP/USD

The GBP/USD pair trades within a tight range some 20 pips either side of the 1.2200 figure, unable to find direction. The release of the CBI quarterly industrial trends survey, showed that manufacturing output and orders grew over the last quarter, with export volumes growth being the strongest in over two and half years, due to a weaker Pound. Still uncertainty over the economic future of the kingdom due to the upcoming Brexit, weighs more. The short term picture shows a modest positive tone, as the price is developing above a bullish 20 SMA, currently around 1.2220, whilst technical indicators lack directional strength, but hold within positive territory. In the 4 hours chart, the price is unable to advance beyond a horizontal 20 SMA, while technical indicators head higher below their mid-lines, losing upward strength. The upside potential seems well limited, although discouraging US data can see the pair retesting the 1.2330 region, a major static resistance level where selling interest is expected to surge.

Support levels: 1.2190 1.2160 1.2125

Resistance levels: 1.2250 1.2290 1.2330

USD/JPY Current price: 104.01

View Live Chart for the USD/JPY

USD/JPY modestly higher ahead of US data. The USD/JPY pair traded as high as 104.05 ahead of the US opening, unable however, to get rid of the neutral tone seen last week, as the pair keeps trading in tight intraday' ranges. The 1 hour chart shows that the price is above its 100 and 200 SMAs, but also that technical indicators are retreating towards their mid-lines within positive territory, at least suggesting no selling interest around the pair. In the 4 hours chart, however, the pair presents a modest positive tone, as the price remains well above a bullish 100 SMA, while technical indicators are recovering from around their mid-lines. The immediate resistance comes at 104.20, with a break above it supporting a retest of the monthly high in the 104.60 region.

Support levels: 103.70 103.25 102.90

Resistance levels: 104.20 104.60 105.00

AUD/USD Current price: 0.7624

View Live Chart for the AUD/USD

The AUD/USD pair trades near a daily high of 0.7640, retreating modestly alongside with oil prices. Nevertheless, the market is extremely quiet this Monday, and as the rest of the major pairs, its confined to a tight intraday range. The short term picture is modestly bullish, as the price is above its 20 SMA that turned north during the European morning while technical indicators are also turning higher within positive territory, although with no momentum. In the 4 hours chart, the pair presents a clear bearish stance, as technical indicators have resumed their slides within negative territory after correcting oversold readings, while a sharply bearish 20 SMA caps the upside around 0.7640.

Support levels: 0.7600 0.7560 0.7525

Resistance levels: 0.7640 0.7690 0.7720

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.