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.
Downside risk should persist for as long as 20 day ma and a downtrend at 1.2890/1.2903 are not breached. The initial support is situated at 1.2624. Should the latter level be violated, then EUR/USD is likely to dip down to 1.2530/88.
The daily market forecast mean (0.9460) was not reached today as investors continued moving from the European bonds to the US T-bills, causing USD to appreciate against the Swiss Franc.
USD/JPY remained in a flat trend today, while breaching the market participants' mean (76.79) on strong core machinery monthly change (14.8% act./5.8% est.).
The British pound pursued the bearish trend as investors worry the EU debt woes might affect the British economy, sending the pair lower today after it touched the daily forecast mean at 1.5327.
The euro continued moving downwards, leaving the daily market participants' mean (98.23) intact, as investors cheered the increase core machinery orders (14.8% act./5.8% est.).
EUR/USD left the daily forecast mean (1.2794) untapped as the pair moved lower on Friday S&P downgrade of 9 Eurozone countries.
USD/CHF has finished its downward corrective move and is now expected to commence advancing, being supported by a strong level at 0.9364/17. At first the pair is anticipated to reach 0.9595, while being en route to 0.9774 in the longer term.
Being that USD/JPY was rather calm the preceding week, it is now expected to attempt to pierce through 77.69 once more. Subsequent resistances are at 78.59 (200 day ma) and 79.56 (55 week ma). Supports may be found at 76.60 and 76.52.
After a short-term weakness, GBP/USD currency couple has managed to form a base ahead of support at 1.5272. Additional support is provided by a key level located at 1.5145. Rallies are unlikely to be able to extend beyond 1.5408 and 1.5500.
The outlook for EUR/USD will remain negative as long as a cluster of resistances at 1.2913/20 (downtrend and 20 day ma) stays in place. Currently the pair is moving toward 1.2530/88, while a long-term target is 1.2083 (200 month ma).
The daily forecast mean has been pierced (0.9460) as weak US trade balance figure (-47.8B act/-44.8 est.) disappointed investors.
USD/JPY declined today and pierced the daily forecast mean (76.79) as the US trade balance unexpectedly widened (-47.8B act./-44.8B est.).
The British added to losses versus the greenback today on disappointing monthly PPI Input (-0.6% act./0.0% est.) and breached the 1.5327 daily target.
The pair erased earlier gains today after S&P announced the EU members' ratings downgrade, including France and Austria and pierced the daily forecast mean at 1.2794.