In anticipation for the long term refinancing operation the ECB is willing to conduct tomorrow, markets fluctuates in a choppy trade, especially after the durable goods demand fell 4% in the U.S which is the most in 3 years, markets participants were anticipating a slight 0.8% contraction, however the number came way below expectations. Core durable goods figures which excludes transportation items unexpectedly contracted by 3.2% the month as well.
The current initial reaction on risky assets is negative, the EUR/USD is defending its daily gains, however downside pressure is seen, if bears manage to push the pair lower 1.3420 support should hold back deeper corrections, otherwise with a penetration below 1.3420 we may see renewed weakness favoring a retest of 1.3365 support. To the upside, only with a push above 1.3440; the pair could target the recent high at 1.3485. The pair is currently trading in the positive territory at 1.3435 well above the session's opening price at 1.3396.
GBP/USD gained on broadly weak dollar today, the pair kicked off the session at 1.5822 to print a high at 1.5900, before backing off trading off highs at 1.5845. The recent range bound we mentioned among 1.5925 (the 200-days SMA) and 1.5645(50-days SMA) remains in control, thus no changes to the overall ranging stance unless we see a sustained breached either above or below the aforementioned levels. Over intraday basis, 1.5800 should act supportive; a dip below could eye 1.5735 and 1.5645 once more. On the northern side, intraday resistance at 1.5880-1.5890 is the main barrier towards 1.5925 and an upside breakout.
The USD/JPY pair is down for the second consecutive day so far, correcting part of the excessive upside action we witnessed. The pair started the session at 80.60 followed by printing a low at 80.00. The correctional move is normal before reattempting to the upside anew; only a dip below 79.50 shall be worrisome and could threaten the bullish bias. Demand is expected to show up among 79.50-80.00, targeting over the short term the recent high again at 81.65 followed by 82.30 swing high and important resistance. Minor intraday support and resistance levels are seen around 80.00, 80.35, 80.60 and 80.77.
Silver made an impressive run today, opened the session at 35.39 to trade now few cents below the session high at 36.05. The commodity has breached some key major technical resistance levels suggesting further gains to be followed. However we would love to see stability above 35.75 with daily closing to look for extended upside targets towards 39.00 and 43.00. Technical the metal has broken the main descending resistance for the overall bearish trend that started from 50.00 top, in addition to stabilizing above the 200-days SMA. So far the breach remains over intraday basis; accordingly we will wait to see development over the upcoming sessions. In the short term; 35.75 breached resistance level should act supportive now, followed by 35.00, while first major resistance seen at 37.00.