The pair continued its bearish correction as US housing starts (0.66M act./0.69M est.) disappoined investors and traded below the 0.9400 level.
The American dollar remained trading in 76-77 channel versus the Japanese yen, hitting the daily forecast mean (76.79) as the US m/m Core CPI was released in line with the analysts expectations (0.1% act./0.1% est.).
GBP traded in a narrow channel today as no significant news has been released, leaving the target at 1.5327 intact.
The pair continued its bullish correction on successful Spanish bond auction, showing risk appetite among investors is improving. The daily market participants' target (98.23) remained untapped today.
The single European currency advanced today, leaving the daily forecast (1.2794) intact, after Spain sold more than previously announced in its debt.
The currency pair has tumbled down to a support at 0.9384/17 which is anticipated to withstand bearish pressure. After retesting this level USD/CHF should commence surging and eventually attain 0.9595.
USD/JPY currency pair has formed a base near 76.58 support level and is looking to make an attempt to pierce through 77.69. In either case subsequent resistances are situated at 78.49, 79.56 and 80.00.
After bouncing off a formidable support at 1.5272 the Cable is recovering. Nonetheless, current rally is unlikely to extend beyond 55 day ma at 1.5624 and an additional resistance at 1.5669.
Rally of EUR/JPY is gaining momentum, suggesting a further recovery of the pair. Being that 98.30 has been already overcome, the next target lies at 100.45/77. However, in the long run the currency pair is expected to decline to 94.92.
EUR/USD is attempting to close above 20 day ma at 1.2851/77. Should the price confirm a breach, the pair is likely to carry on advancing until it reaches 1.3077/1.3145. The initial support may be found at 1.2782, followed by 1.2711 and 1.2624.
Considering the long-term perspectives, USD/CHF is expected to continue trading well above 0.9377/17. Ultimately, the price should climb up to 0.9595 and surpass this threshold. The immediate resistance and support are located at 0.9572 and 0.9448.
USD/JPY has just retested 76.56 and is getting ready to challenge the initial resistance line situated at 77.69. In case the latter level is breached, the price then will target resistances at 78.52 (200 day ma) and at 79.56 (55 week ma).
A key support level at 1.5272 in conjunction with a subsequent line at 1.5145 has repelled the Cable, sending it higher. Even though resistances at 1.5633 (55 day ma) and 1.5672 are likely to halt rallies, the price should attempt to recover.
Bullish momentum of the pair has faded off circa 98.29. Now EUR/JPY is expected to commence trading off toward 94.92. However, this target will be reached provided that the price penetrates supports located at 97.04 and 96.15.
Current rally of EUR/USD is expected to last for several days, being capped by a resistance zone situated at 1.2871/86 (20 day ma). Nonetheless, the overall outlook remains bearish with the initial target lying at 1.2530/88.
The American dollar advanced today after the release of the Empire State Manufacturing Index, which made investors feel optimistic over the US property market recovery.
The pair paired its previous intraday losses after the Empire State Manufacturing Index rose more-than-expected (13.5 act./10.8 est.), suggesting the property market is gradually going back in shape.
GBP continues its recovery as the annual inflation index was released in line with economists forecast (4.2% act./4.2% est.).
The shared European currency attempted to break through the 100 level on more-than-forecast German employment data, remaining the daily target at 99.54 untapped for now.
EUR/USD rose today after Spain and Greece successfully sold their debts and German business confidence improved, encouraging investors to buy the euro versus dollar.
Being that a strong support at 0.9367/17 will repel any downward movements, USD/CHF is anticipated to recommence recovering. Initially, the pair should target 0.9565, then 0.9744/84 and 0.9950.
USD/JPY is currently sliding down to a support line located at 76.54. Nevertheless, an advancement toward 77.69 first and 78.56 (200 day ma) and even higher levels (79.56 and 80.00) afterwards is not ruled out.
A key support zone formed by resistances 1.5272 and 1.5145 is unlikely to be penetrated in the nearest future. From above the price is capped by 1.5658 (55 day ma) and 1.5686. In the long-term the support area is expected to surrender and allow for a dip to 1.4260/29.
After falling into 11-year lows, EUR/JPY is expected to commence short-term recovery. Rallies in such case should be capped by resistances at 98.82 and 100.77. Nonetheless, the longer term target for the pair lies at 94.92.