The US dollar ran into fresh offers across its main competitors in the Asian trades, allowing a sharp reversal in AUD/USD from three-week lows just under the 0.72 handle, while hawkish comments by RBA’s Kent also offered respite to the bulls.
Broad-based USD weakness pushed EUR/USD higher to the confluence of symmetrical triangle hurdle and 55-day moving average (MA). The EUR/USD pair could cross the key technical resistance 1.1435 in Europe, having rallied 0.4 percent in Asia.
The GBP/USD was trading little changed over the first week of December opening at 1.2762 and closing at about the same level on Friday as the Brexit parliamentary debate heated up ahead of the parliamentary vote on the Brexit agreement on Tuesday.
US President Donald Trump and his Chinese counterpart Xi Jinping agreed on a 90-day trade truce in their meeting in Buenos Aires. However, the statements from Washington and Beijing differed.
Cryptocurrency market has been recovering since Friday when Bitcoin and other major altcoins touched new lows of 2018. Currently, the total capitalization of the digital assets in circulation rose to $113B from as low as $103B on December 7. While it is too early to claim that the worst is over, crypto investors obviously got some breathing space.
The latest drop to to a fresh 2018 low ends a period of range contraction and has the market sinking down below the apex of the triangle it had been trading in. This is quite bearish and sets the stage for an even bigger decline towards the September 2017 low down around $2,975.
IOTA has stuck itself into a downward sloping parallel channel where it is sitting just at the cusp of the lower line of the channel, a break below would be catastrophic as then it would be an unchaarted territory and probably all time lows too. IOT/USD is up more than 2 percent on day at $0.2336 just around...
EOS bears have been rejoicing with joy as they have overachieved their bearish targets on the downside of a triangle breakdown, as reported last week by this author (read here). What next? If prices don't stabilise here, then chances of a severe breakdown are quite high.
Slow economic growth still the main drag for the common currency
The EUR/USD pair seesawed between gains and losses throughout the week, finishing it up around the 1.1400 level. For a sixth consecutive week, the pair has been unable to find a certain direction, trapped between a more dovish Fed and slowing growth and political turmoil in the EU.
EUR/USD is trading at the upper half of the trading range at the wake of the last European session of the week, ahead of the all-important US jobs report and the German CDU Conference in which Angela Merkel's successor will be elected.
The Technical Confluences Indicator shows that euro/dollar enjoys significant support at 1.1351 where we see the convergence of the Simple Moving Average 50-4h, the SMA 5-one-day, the SMA 200-1h, the Bollinger Band one-day Middle, and the Fibonacci 61.8% one-week.
It is followed closely by 1.1328 where we note the confluence of the Fibonacci 61.8% one-month, the Pivot Point one-day Support 1, the Fibonacci 38.2% one-week, and yesterday's low.
Looking up, there is some resistance around 1.1392 which is the meeting point of the Fibonacci 23.6% one-day and the Fibonacci 38.2% one-month.
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