The EUR/USD pair fluctuated below the key resistance at 1.3200 today, on mixed but slightly negative macroeconomic data from the euro zone, where the German retail sales slumped 1.4% in December which came way off expectations of 0.9% growth. French consumer spending contracted as well; printing a 0.7% decline in December. On the employment side; change in the number of unemployed people in Germany during December decreased by 34,000 which was an upside surprise, on the other hand the Italian monthly employment rate climbed to 8.9% from 8.8% last month.
The ongoing Greek debt talks between government and the IIF remain in the blackhead of traders, anticipating the final deal between the two parties, however with an optimistic eye, especially after the EU summit yesterday continued to back the fiscal pact, and strengthening the regions financial firewall.
That gave the pair some support near this key juncture at 1.3200, where it printed a low at 1.3159 this morning before rebounding again towards 1.3200, to the upside the pair failed to trade above 1.3213. The pair is currently trading near the opening price at 1.3171. In general, the ascending channel that carried price from 1.2600 lows remains intact and the main support of the channel is located at 1.3100, but first intraday support is seen at 1.3160.
The dollar index continued to lose ground today, where the index dropped around 20 points after opening at 79.08 currently trading at 78.88 and pushing towards the support at 78.80, steady trading below this level could extend losses further towards 78.50 and 78.20.
The USD/CAD printed a low at 0.9965 before rebounding after the Canadian economy surprisingly contracted 0.1% last month, while economist's mean forecasts pointed to an expansion of 0.2% in December. The pair is currently trading at 0.9990, a test of the breached intraday ascending support around 1.0015 within reach. A breach above 1.0015 may lead to a retest of the major resistance area among 1.0050-1.0075. On the downside steady trading back below 0.9980 shall open the door to 0.9960 followed by 0.9920.
One of the elite outperformers today was the Kiwi, where the NZD/USD pair surpassed key resistance at 0.8250 to print a high just below 0.8300, the pair has been moving in a steady uptrend lately, and steady trading above 0.8240-0.8250 could extend gains further, for a possible test of the next important resistance at 0.8340.
The S&P/CS Composite-20 Home price index was just released confirming that the housing sector in the U.S remains fragile, home prices dropped 3.7% on an annual rate; this figure alongside the unexpected contraction of the Canadian economy could put the current risk-appetite sentiment under pressure, unless new developments from Greece pop up.
From the U.K, GFK consumer confidence showed a slight sentiment improvement among British consumers as the index climbed 2 points, printing -29 compared to -33 last month. The GBP/USD pair rallied sharply where its currently testing a critical resistance at 1.5785-1.5800, a breach above this level will open the door initially towards 1.5890. To the downside first support around 1.5730 followed by 1.5700 and 1.5660.