The single European currency continued the bearish trend, started 20 days ago as the borrowing costs for Spain and Italy are rising on fresh worries the countries won't manage their debts.
Current rally which has started from a support at 1.3380/60 is about to end. As soon as the price reaches 1.3835/80 after overcoming resistances at 1.3616 and 1.3635 it is anticipated to tumble down to 1.3270 or even 1.3145.
The bearish momentum is weakening while the price approaches a tough support located at 103.08. Should the latter level be penetrated, 100.77 will come into play. Resistances, on the other hand, are situated at 106.80 and 108.50.
Support line at 1.5720 is not deemed as strong enough to halt downward impetus as fairly soon the currency couple will be headed towards 1.5632 en route to 1.5272 and ultimately, 1.5050.
Levels at 76.22 and 75.94 are expected to provide sufficient support for USD/JPY to surge up to such marks as 79.56 and 80.37, 55 week ma. The initial resistances will be met at 77.29 and at 78.07 as well.
Since USD/CHF is supported by 0.9015 and 0.8555/20 from below, the pair is expected to regain its bullish momentum and commence advancing. The primary target is located at 0.9237, while further goals are 0.9317 and 0.9341.
Euro attempted to advance today after the European Central Bank president Mario Draghi assured financial markets that the Central bank will continue doing what it has to do amid the German Producers Price Index released higher than forecast (0.2% versus 0.1%) today. This caused the pair to breach the market mean at 1.3467 and strive to a daily maximum at 1.3613.
The pair commenced a downward slide as investors preferred to acquire Japanese yens, seeking for safe-haven amid growing uncertainty over the EU debt crisis. Therefore, the market mean at 104.61 remained intact today.
GBP/USD recovers after a week-long slump after the ECB President announced the Central Bank will continue its current operations to reduce tensions on the financial markets, piercing the market mean at 1.5753.
The market mean at 76.98 has been approached as leading economists suggest the global economy will stall next year, making investors purchase the Japanese Yen against its American counterpart.
The American dollar remains is being favoured against the Swiss Franc by investors worldwide after the world's largest economy leading index showed stronger data than expected, suggesting the US economy is gaining momentum. As a result, the market mean at 0.9207 was breached today.
The pair is expected to bounce off 1.3380/60 and then continue its downward movement toward 1.3145. The ultimate target remains at 1.20. Rallies should be capped by resistances at 1.3870 and 1.3995/1.4104.
While approaching 103.08 the bearish impetus seems to be losing power, therefore we might observe some small rallies up to 104.75 and 105.32. Dips, on the other hand, will be limited by 103.40, 103.08 and 102.44.
For now GBP/USD has managed to stabilize at 1.5720 after penetrating 1.5825. Nevertheless, this is only considered to only a near-term base before it slides down to 1.5632, then 1.5272 and eventually 1.5050.
USD/JPY continues to distance itself from 79.44 and is slowly crawling below 76.94. Supports at 75.94 and 75.31 are expected to halt bearish movement, while the price has to close above 80.44 to regain bullish momentum.
Even though a test of resistances located at 0.9317 and 0.9341/99 may trigger a trade off, the movement to the upside is anticipated to carry on afterwards. USD/CHF is unlikely to fall below 0.8555/50 before it challenges new resistances.
The American dollar continued its 2-week rally as the number of unemployment claims declined to 388K versus expected 395K. As a result, the market mean at 0.9187 was breached today.
The market mean at 77.11 has been touched in early Wednesday trading, though the pair commenced moving south as concerns over the EU debt crisis intensified.
The UK economy shows no signs of recovery therefore making investors selling the British currency versus the American dollar, crossing the market mean at 1.5753.
The common European currency inched lower today versus the Japanese Yen and pierced the market mean at 103.81 as worries over the EU debt crisis caused investors to seek for safe-havens.
The Euro-Dollar pair moved lower today as the American economy showed signs of growth: unemployment claims declined to 388K versus expected 396K and buildings permits rose to 0.65, more than the 0.60M estimate.
The currency pair is closing in 1.3380/60, which is to provide temporary support for the price. After some time it is expected to be pushed through, clearing the way to subsequent levels at 1.3145 and eventually 1.20.
EUR/JPY has successfully tested 103.40 and now the bearish momentum is gradually gaining strength to drag the price down to 103.08. Should the latter support be breached, then this drop might extend down to 100.77.
Since the pair has come below 1.5825, it should then tumble down to 1.5632. Secondary and tertiary targets are located at 1.5272 and 1.5050. Rallies are to be capped by resistances at 1.6060 and 1.6136.