EUR/USD: dollar gains in mute markets

EUR/USD Current price: 1.0609

The dollar consolidated its latest gains this Thursday, with the EUR/USD pair confined to a 30 pips range amid a strong lack of volume due to the US Thanksgiving holiday. Nevertheless, the common currency remained under pressure ahead of crucial data to be released next week, including the ECB latest economic policy decision and the US Nonfarm Payroll report. The only piece of data released this Thursday, was the EU money supply figures, showing an increase in circulating in the region during October of 5.3%, the result of the ongoing easing from the Central Bank, but hardly a market mover. European stocks managed to rally, which maintained the EUR subdued, yet there was no action across the board. This Friday, the US will have an early close, and there will be no fundamental data released, although some macro figures will be delivered by the EU, none of them a trend changer.

As for the EUR/USD pair, the 4 hours chart shows that the bearish momentum prevailed for one more day, given that the price was unable to recover above the 20 SMA, whilst the technical indicators present mild bearish slopes below their mid-lines. Given that the month end is around the corner ,little can be expected for this Friday, although market's sentiment continued favoring lower lows towards 1.0460 and selling on spikes.

Support levels: 1.0590 1.0550 1.0520

Resistance levels: 1.0630 1.0660 1.0695

EUR/JPY Current price: 130.04

View Live Chart for the EUR/JPY

The EUR/JPY pair closes in the red for a third day in-a-row-, but within the lower half of its Wednesday range, and a few pips above the 130.00 level. The Japanese yen held strong, despite European stocks edged sharply higher, with the EUR being weighed by rumors that during the next week meeting, the ECB can cut its deposit rate further into negative territory. The 4 hours chart for the EUR/JPY pair maintains the risk towards the downside, as the price is developing well below the 100 and 200 SMA's, while the technical indicators remain below their mid-lines, although lacking directional strength. The weekly low was set at 129.76, which means that a downward acceleration through 129.80 should lead to further declines, with the market pointing then for a test of the 129.00 region.

Support levels: 129.80 129.40 129.00

Resistance levels: 130.55 130.90 131.30

GBP/USD Current price: 1.5103

View Live Chart for the GPB/USD

The GBP/USD pair edged lower in thin trading, having met buying interest on an approach to the weekly low set at 1.5056, but contained below the 23.6% retracement of its latest weekly decline at 1.5135, the main resistance level for the upcoming sessions. There were no macroeconomic releases in the UK, but this Friday, the economy will release a second estimate of the Q3 GDP, expected to remain unchanged at 0.5%. An improved number may help the Pound recover, although at this point, the GBP/USD pair needs to regain the 1.5200 figure to begin looking more constructive. From a technical point of view, the 4 hours chart shows that the price is hovering around a bearish 20 SMA, whilst the Momentum indicator remains below its 100 level, and the RSI indicator retreats from its mid-line and heads lower around 45, all of which maintains the risk towards the downside.

Support levels: 1.5050 1.5010 1.4980

Resistance levels: 1.5135 1.5160 1.5190

USD/JPY Current price: 122.59

View Live Chart for the USD/JPY

The USD/JPY pair traded in a 20 pips range during the last 24 hours, still holding above the critical 122.20 level, the low of these last three weeks. The pair hovered around the 122.50/60 region for most of the day, still unable to confirm a stepper recovery after having been rejected from the 123.70 region earlier this month. During the upcoming Asian session, Japan will release its inflation data for October, alongside with the latest unemployment rate and some investing and consumption data. Particularly inflation may affect the yen as worse-than-expected readings could send the Japanese currency lower across the board. From a technical point of view, the upside remains limited according to the 4 hours chart, as the price holds below its 100 SMA, while the technical indicators aim slightly higher, but in neutral territory, far from confirming a new leg north. A break below 122.20 would risk a stronger decline, down to 120.50 before buying interest re-surges.

Support levels: 122.20 121.70 121.35

Resistance levels: 123.00 123.40 123.75

AUD/USD Current price: 0.7236

View Live Chart for the AUD/USD

The AUD/USD pair fell at the beginning of the day, down on disappointing Australian data, as private capital expenditures contracted by another 9.2% in the third quarter, after shrinking 3.3% in the previous one. The decline was led by a contraction in business investments in the mining sector, as commodities prices have been plunging during the past few months on the back of Chinese's economic slowdown. The technical picture is still mild positive, as the pair managed to hold above the 0.7200 level, and the 4 hours chart shows that the price is struggling around a bullish 20 SMA, whilst the technical indicators are bouncing from their mid-lines, in line with an upcoming recovery. Nevertheless, the pair needs to regain the 0.7240 level, the immediate short term resistance, to be able to retest the highs near 0.7300 posted earlier this week.

Support levels: 0.7200 0.7150 0.7110

Resistance levels: 0.7240 0.7285 0.7330

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