Jitters eased briefly today supported by improved business climate or sentiment In Germany, in addition to overwhelmingly good retail sales figure from the U.K. And amid confident expectations that the global community will meet the International Monetary Fund (IMF) demand for at least 400 billion dollar of firewall today in the G20 meeting.
The EUR/USD was well demanded today as the pair managed to breach the short term descending resistance of the falling wedge; before facing the recent swing high and the 50-days SMA at 1.3210 where the bullish move was halted briefly. The breakout above the wedge pattern hints we may see further gains within the upcoming short period; where 1.3210 is the only barrier towards the next resistance at 1.3270. To the downside 1.3250-1.3255 should form a near term support level.
Cable maintained the strong rally surpassing 2012 high at 1.6060. The GBP/USD pair confirmed the breach of 1.6000 psychological level; thus further upside towards the top of the major rising wedge pattern and the major swing high at 1.6160 is anticipated now. 1.6060 followed by 1.6000 should limit any downside pullbacks in the near term.
The USD/JPY has finally reached the targeted 81.80 level and the ceiling of the short term descending channel. The descending resistance of the channel around 81.80 is the main obstacle towards a continuation of the major rally we have seen recently, where taking 81.80 with steady trading could lead initially to 83.20 followed by 84.20. To the downside 81.20 should be watched carefully, where a dip below it may put the pair under downside pressure again.
Oil managed to breach 103.65 main intraday resistance and heading towards the ceiling of the main declining channel and the 50-days SMA around 105.00 area. We may see a retest of this area among 105.00-105.50 soon, however any further upside won't be confirmed without taking the critical 105.50 level. While 103.65 followed by 102.30 should halt any downside attempts for the bullish bias to remain intact. A dip below 102.30 shall resume the overall bearish direction.