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.
USD/CHF has penetrated the initial support at 0.9450 and is now moving in the direction of 0.9383 with the possibility of dropping as low as 0.9337/17. However, the latter level should be enough to withstand the downward pressure.
USD/JPY is crawling upwards, although its advancement may be hampered by resistances located at 77.89, 78.63 (200 day ma), 79.67 (55 week ma) and 80.00. Dips should be halted by supports at 76.60 and 76.22.
GBP/USD has managed to stabilise ahead of 1.5272, although a sustained rally is unlikely, since 55 day ma situated at 1.5673 presently caps the pair from above, while subsequent level is at 1.5704.
Even though the current rally may extend up to 1.2933, the long-term outlook remains negative for the pair. As soon as bullish momentum weakens near one of the resistances, EUR/USD will dip down 1.2530/88 while en route to 1.2083.
The market forecast mean for Thursday (0.9534) was successfully hit after the US business inventories declined (0.3% act./0.4% est.), suggesting the US economic recovery is gaining pace.
The Japanese yen appreciated today against the American dollar and pierced the market participants' target at 76.89 as the Economy Watchers Sentiment improved (47.0 act./46.3 est.).
The British pound continued its bearish trend after touching the daily market mean at 1.5360 as Manufacturing Production m/m (-0.2% act./0.0% est.) disappointed investors.
The common European currency inched lower today as the Japanese economy showed a more than expected Current Account surplus (0.48T act./0.52T est.).
EUR/USD pierced the daily forecast mean at 1.2715 and went higher on more-than expected Italian Industrial Month-on-Month Production (0.3% act./-0.2% est.) and French CPI M/M (0.4% act./02.% est.).
The daily market forecast mean at 0.9490 has been pierced as the pair recovered on more than expected inventories, paring early weekly losses.