Markets were driven by important technical demand and supply levels today, higher yielders were underperforming the U.S dollar with the start of the day, before offsetting earlier losses to end ahead so far. The IFO business climate figures in the euro zone came to support the rebound, while growth outlook downgrade by the Euro Commission halted the bullish move temporarily.
Those were the main headlines during the European session. The U.S session was kick started with a Commerce Department weekly report, showing the number of Americans filing for unemployment benifits held in check last week at 351 thousand.
TheEUR/USDcontinues the relative positivity we have seen during the week, pushed today above yesterday's high and resistance at 1.3290 to test levels above the pivotal high at 1.3220, before retreating to retest the breached level.
The pair is currently attempting to hold above 1.3290, seeking another run to the upside, thus, we prefer not to see a dip below this level as it may push price lower for the rest of the session, mainly towards 1.3200. On the other hand, a daily closing above 1.3320 shall confirm our short term bullish view towards 1.3500.-1.3600 areas.
USD/JPYis hanging on the air; the recent bullish shoot hit 80.25 target, one of the few post intervention major highs. Price is currently hanging at this level while trading within a narrow range today among 80.34-80.03, after opening the session at 80.28. Price remains extensively overbought; a downside correction could be healthy now targeting a retest of the breached areas at 79.50 and 78.50. While settling above 80.25 will clear the way to 81.60.
GBP/USDfound support at the latest swing low at 1.5645 just above the 50-days SMA, now trading back above 1.5700 mark. An upside attempt towards the highs at 1.5900 is possible within the upcoming sessions, on the other hand, failure below and a break back under 1.5645; will confirm a bearish technical double top pattern that targets initially 1.5500 areas. Main support levels for today start at 1.5695 followed by 1.5650, to the upside first resistance at 1.5730 followed by 1.5765. The pair opened the day at 1.5669, printed a high at 1.5730 and low of 1.5649.
Goldmaintains its shiny performance, as the greenback continues to lose grounds. The metal successfully breached the targeted 1760.00 level currently printing new highs above 1780.00, in its way towards the main target at 1800.00. The metal started the day at 1776.00.