EUR/USD Current price: 1.0815
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The American dollar ended the day with gains against all of its major rivals, extending is post-FED helped by a steep decline in commodities' prices. The EUR/USD pair started the day with a soft tone, and traded below 1.0880, the 38.2% retracement of the latest monthly decline, failing to recover above it on an early attempt to advance. The common currency was dumped following the release of the German IFO survey, showing that business confidence in the country unexpectedly declined in December. US data was mixed, with the weekly jobless claim resulting better-than-expected by falling to 271K in the week ending on December 11, although the manufacturing sector remains subdued, as the Philly FED index came out at -5.9 for December, against previous 1.9.
The short term picture for the pair suggests the decline is not yet over, as in the 1 hour chart the technical indicators have resumed their declines after limited upward corrective movements within negative territory, while the price is currently developing well below its moving averages. In the 4 hours chart, the 20 SMA heads lower well above the current level, the RSI indicator heads lower near 34, while the Momentum indicator has lost its bearish strength, but holds near overbought levels, all of which supports a bearish continuation for this Friday.
Support levels: 1.0790 1.0750 1.0720
Resistance levels: 1.0840 1.0880 1.0915
EUR/JPY Current price: 132.65
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The EUR/JPY pair gave back all of its recent gains and trades near the 2-week low posted this Monday at 132.43, as the common currency lost its post-ECB attractive. Despite that the Japanese yen eased to fresh lows against the greenback EUR self weakness outpaced the safe-haven one, indicating the decline may extend into next week. From a technical point of view, the bias is towards the downside, as in the 1 hour chart, the price is developing below a mild bearish 10 SMA, currently offering an immediate resistance around 133.00,, while the technical indicators remain below their mid-lines, although showing no directional strength. In the 4 hours chart, the Momentum indicator heads south below its 100 level, while the RSI indicator also points lower around 42, supporting a downside continuation, particularly on a break below the mentioned weekly low.
Support levels: 132.45 132.10 131.70
Resistance levels: 133.00 133.45 133.90
GBP/USD Current price: 1.4878
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Investors kept selling the Pound all day long, and despite the UK Retail Sales figures resulted better-than-expected. In fact, the release of November data, showing that sales grew by 1.7% compared to October, and by 5.0% in a year-on-year comparison, sent the GBP/USD pair up to a daily high of 1.5007, giving sellers the perfect opportunity to jump into dollar's strength, as the pair shed over 50 pips in a few minutes, and extended its decline further lower afterwards. The pair stands at a fresh 8-month low ahead of the Asian opening, and with the intraday technical readings showing that the bearish pressure remains intact, as the technical indicators in the 1 hour chart, show no aim of turning higher and continue heading south near oversold levels. In the 4 hours chart, the technical indicators are losing their bearish strength, but remain in oversold territory. Should the price fall below 1.4850, further falls are to be expected, initially towards the 1.4780 region.
Support levels: 1.4850 1.4815 1.4780
Resistance levels: 1.4940 1.4985 1.5050
USD/JPY Current price: 122.77
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The USD/JPY pair recovered ground this Thursday, reaching a daily high of 122.80 and holding nearby ahead of the Asian opening, when the Bank of Japan will have its monthly economic meeting. However, recent upbeat data points to an on-hold stance from the BOJ, in its last policy decision of the year, despite inflation remains far below the 2.0% target. Anyway, the pair hold into gains even despite US stocks turned sharply lower in the American afternoon, and the 1 hour chart shows that the price holds well above its 100 and 200 SMAs, with the shortest slowly advancing below the largest. In the same chart, the RSI indicator stands flat near overbought territory, while the Momentum indicator lacks directional strength, but holds in positive territory, far from suggesting a short term decline. In the 4 hours chart, the price has advanced above its moving averages for the first time in over a week, while the RSI indicator heads strongly higher near overbought levels and the Momentum indicator hovers also near overbought territory.
Support levels: 122.60 122.20 121.70
Resistance levels: 123.00 123.40 123.75
AUD/USD Current price: 0.7116
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The AUD/USD pair fell to its lowest in 4 weeks, plummeting below the 0.7100 level on the back of gold prices' slide. The Aussie was holding relatively well against dollar strength, but gave up at the beginning of the American afternoon, when spot gold shed around $17.00 in a couple of hours. Technically speaking, the bias is still towards the downside, albeit in the short term, the technical indicators have lost their bearish strength near oversold territory, while in the 1 hour chart, the 20 SMA has turned sharply lower above the current level, now acting as a dynamic resistance around 0.7165. In the 4 hours chart, the pair fell further below its 200 EMA, while the 20 SMA is gaining bearish slope, both far above the current level, while the technical indicators are losing their bearish strength near oversold territory, but far from supporting an upward move for this Friday.
Support levels: 0.7090 0.7050 0.7010
Resistance levels: 0.7160 0.7200 0.7240
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