A close below 100.00 implies extension of the current dip, which may last up until 98.40 is contacted. However, this support is anticipated to hold the downward pressure and send the currency pair back up.
The Euro - American Dollar pair is hovering below a tough resistance at 1.3000, while a key level is located at 1.3100/56. The outlook is negative for the pair with the possibility of EUR/USD touching 1.2750.
USD/CHF is showing a bullish bias after the US economy posted 0.2% Core CPI, indicating the US economy is gaining strength, though the daily target at 0.9432 has not been reached yet.
The American dollar inched today as investors were selling yens against USD after the US economy posted 0.2 Core CPI versus expected 0.1%. As a result, the daily target at 77.80 has been crossed.
The British pound continued trading in a flat trend today on uncertainty over the UK economy and the prospects of the Eurozone, causing the market mean at 1.5496 to breach.
The single European currency is trading within 101.-102 price range on further uncertainty with EZ, though level 101.32 - the daily forecast consensus – was not tested today after the Euro pared intraday losses on the ECB chief statement.
The daily forecast mean at 1.3009 has been touched, though the pair recovered its intraday losses after Mario Draghi, the ECB chairman, stated the euro zone is on the right track.
Despite that USD/CHF pair is somewhat weak at the moment, the overall picture remains bullish. In case the price falls, a tough level located at 0.9375 should be able to provide sufficient support and send the pair back up.
The bias for USD/JPY is slightly bearish, with the possibility of the currency couple dipping down to 77.00, since a tough resistance located at 78.25 is expected to repel rallies. However, the price should first violate a rather strong support at 77.50.
A break below 1.5400 is a negative sign for the Cable, even though it is presently recovering from its recent low at 1.5355/65. To confirm a long-term recovery it should re-establish 1.5400 as a key level.
EUR/JPY attempts to stabilise near a support situated at 100.00, nonetheless this endeavour is expected to fail and trigger a sell off down to 99.50. In case the latter level is breached as well, a pullback might extend to 99.00.
Even though the pair managed to recover from 1.2850, the outlook remains bearish. As long as a key resistance at 1.3000/50 caps EUR/USD from above, bullish momentum is unlikely to appear.
The pair continues trading in the 77-78 price range against the Yen as investors were spooked by more-than-expected US unemployment claims, thus the daily market participants' target at 77.87 has been pierced.
The pair slumped today and breached the daily forecast mean at 1.5508 after the Chicago PMI rose more than expected (62.5 vs. 60.4 estimate).
The Euro pierced the market participants' forecast at 101.05 against the Yen on news banks deposited the record sum to the ECB.
EUR/USD continued moving downwards after the month-to-month US pending homes sales rose 7.3% instead of forecast of 1.7%; therefore the market participants' forecast mean (1.2967) remained untapped.
The Euro - Japanese Yen currency pair has pierced through a key support at 101.00 and is currently eyeing 99.50 as a next target. Should the latter level be breached, weakness of the price might extend down to 99.00.
In case EUR/USD rebounds from 1.2930/44 and climbs as high as 1.30, upward correction might continue for some time more, up to 1.3160. However, should 1.2944 be breached, the pair is likely to target 1.2870 first and 1.2590 afterwards.
Following a recent rally the currency couple is expected to carry on stepping higher. Additionally, since the uptrend is anticipated to provide sufficient support, a break of 0.9430 would imply a possible advancement up to 0.9545.
USD/JPY did not manage to gain foothold above a key resistance at 78.00/25. Therefore it is likely to carry on trading within a narrow range between a tough support at 77.00 and a strong resistance zone located at 78.00/25.
The price of the British Pound has fallen sharply after nearly reaching 1.5700. At the moment the outlook remains bearish, with a likely scenario of the Cable dipping as low as 1.5400 in the nearest future.
Correction lower might extend even lower while USD/CHF is being capped by a resistance line at 0.9399. After breaching support at 0.9242, 0.9173 will become the next target. Even though 0.9056 is unlikely to be broken since it is a cluster of supports, a dip below it cannot be ruled out.
While being capped by a tough resistance at 78.00/25 the near-term bias for the pair is bearish which has been confirmed by a dip below 78.00 level. At the moment USD/JPY is heading toward a support at 77.00.
The immediate resistance for the Cable is situated at 1.5779, while a higher level is at 1.6165. In case the pair becomes bearish, supports at 1.5557 and at 1.5409 should be able to halt downward movement and restore neutral bias.