EUR/USD breaks below 1.0400 handle
A fresh bout of greenback buying interest emerged on Wednesday, with the EUR/USD pair accelerating its downslide in the past hour to break below 1.0400 handle. Currently trading around 1.0395 level, testing fresh session lows, the pair came under renewed selling pressure as market expectation of further Fed rate-hike actions in 2017 continued underpinning the US Dollar. Today's US Dollar up-move was further supported by recovery in US Treasury bond yields, in response to Tuesday's encouraging consumer confidence data that reaffirmed prospects of stronger US economic growth. Amid holiday-thinned trading activity and in absence of any important market moving releases, possibilities of some stops getting triggered, on a sustained break below 1.0450 level, might have also contributed to the pair's sharp slide during early NA session.Next on tap would be the US pending home sales data, which will be looked upon for some immediate respite for bulls. A follow through selling pressure below 1.0385 horizontal support is likely to accelerate the slide towards multi-year lows support near 1.0350 region below which the pair seems all set to head towards testing 2003 yearly lows support near 1.0335 level.On the upside, sustained recovery back above 1.0400 handle might now confront immediate resistance near 1.0435-40 region, which if cleared might assist the pair to make a fresh attempt towards reclaiming 1.0500 psychological mark.
GBP/USD flirting with multi-week lows
Having faced rejection near 1.2300 handle, the GBP/USD pair came under renewed selling pressure and dropped closer to multi-week lows support near 1.2230 region.The pair, however, has held this immediate support for the time being and is now consolidating its sharp slide near 1.2240-45 band. Renewed 'hard Brexit' worries accompanied with resurgent US Dollar buying interest, on growing expectations of stronger US economic growth and higher interest rates, have been the key factor exerting fresh selling pressure around the major. Even the only the only piece of relevant data from UK, Mortgage Approvals, failed to provide any respite for the bulls. In fact, the number of new mortgage approvals for November came-in at 40.659K, down from previous month's 40.835K previous and 41.4K expected. Focus now shift to US economic docket - featuring the release of pending home sales data, which again is unlikely to shaken the greenback’s well-established bullish trend. A follow through selling pressure below multi-week lows support near 1.2230 region is likely to accelerate the slide towards 1.2200 handle below which a fresh bout of selling pressure is likely to drag the pair further towards 1.2160 horizontal support, en-route 1.2100 round figure mark.On the upside, any recovery move above 1.2265 immediate resistance might continue to confront strong resistance near 1.2300 handle, which if cleared has the potential to lift the pair towards an important horizontal support break-point, now turned resistance, near 1.2325-30 region.
USD/JPY attempting a fresh move towards 118.00 handle
The greenback continued strengthening across the board, with the USD/JPY pair accelerating the upward trajectory to hit a fresh session peak.Currently trading around 117.75-80 band, the pair initially struggled to gain traction in wake of mixed Japanese economic data (industrial production and retail sales) and mild greenback retracement. As the day progressed, resurgent US Dollar strength helped the pair to defend 117.50 immediate support and dart back towards 118.00 handle. The ongoing recovery in European equity market also seems to be weighing on the Japanese Yen's safe-haven appeal and contributing to the pair's strong up-move in the past hour. Traders now look forward to the release of US pending home sales data for short-term trading opportunities amid holiday-thinned subdued trading activity in financial markets.From current levels, immediate resistance is pegged near 118.00 handle above which the pair is likely to make an attempt to surpass 118.20-25 resistance area and head towards testing multi-month highs resistance near 118.65 level. On the downside, 117.50 now seems to have emerged as immediate strong support, which if broken is likely to accelerate the slide towards 117.00 round figure mark (yesterday's low), en-route 116.55-50 support zone.
AUD/USD reverses recovery gains, back below 0.7200 handle
The AUD/USD pair came under renewed selling pressure and has now drifted into negative territory, reversing its entire recovery move beyond 0.7200 handle.Currently trading around 0.7180-75 band, testing session lows, a fresh wave of US Dollar buying interest seems to be the only factor exerting heavy selling pressure around the major amid holiday-thinned liquidity conditions. Tuesday's impressive US economic data showing, consumer confidence climbing to its highest level in 15-years, reaffirmed Trump-led optimistic view for the US economic growth and supported the US Dollar's strong bullish trend. Moreover, expectation of tighter Fed monetary policy stance in 2017 is also contributing to the selling pressure around higher-yielding currencies - like the Aussie.Looking at the broader picture, the pair's attempted recovery from near-term oversold conditions got sold into. Hence, a subsequent break below last week's 7-month low should now open room for continuation of the pair's near-term depreciating move. Today's US economic calendar remains light, with the only notable release of pending home sales data, which will be looked upon for some immediate respite for bulls. From current levels, multi-month lows near 0.7160 remains immediate support to defend, which if broken decisively is likely to accelerate the slide towards 0.7100 round figure mark. Meanwhile on the upside, any recovery attempts might now confront strong resistance near 0.7200 handle, which if cleared might trigger a short-covering rally back towards 0.7225 resistance area ahead of 0.7265-70 hurdle.
USD/CHF climbs above 1.0300, hits 8-day highs
The US dollar extended gains versus most competitors on Wednesday, recovering some of the lost momentum, with USD/CHF reaching fresh 8-day highs above 1.0300.Following several sessions of sideways trade, USD/CHF broke higher and climbed to its highest level since Dec 20 at 1.0315, although it faltered a few pips ahead of that day’s peak. At time of writing, the pair is trading at 1.0303, still up 0.3% on the day.In the absence of major indicators and amid thin volume, investors resumed demand for the USD amid prospects of faster rate hikes by the Fed in 2017. In terms of technical levels, next resistances could be found at 1.0319 (Dec 20 high), 1.0343 (6-year high, Dec 15) and 1.0400 (psychological level). On the flip side, supports are seen at 1.0268/63 (10-day SMA/Dec 28 low), 1.0217 (Dec 22 low) and 1.0189 (21-day SMA).
WTI retakes $54.00 mark, now eyeing yearly high
WTI crude oil extended overnight strong gains and rose for the fourth straight session on Wednesday amid holiday-thinned market liquidity. Currently hovering around $54.00/barrel mark, having posted a session high near $54.30 region, the black gold moved within striking distance of 17-month high touched on December 12, with investors now looking forward if OPEC and non-OPEC members would abide by the oil output deal and curtail production beginning next month. Meanwhile, resurgent US Dollar buying interest, which tends to weigh on dollar-denominated commodities - like oil, hindered the commodity's bullish momentum. Later during NY session, traders will confront the release of API report on US weekly crude stocks, while the official EIA data will be released on Thursday.From current levels, multi-month highs near $54.50 region is likely to act as immediate resistance above which a fresh bout of short-covering is likely to lift the commodity towards $55.00 psychological mark. On the downside, $53.55-50 area now seems to protect immediate downside, which if broken is likely to accelerate the slide towards $53.00 handle, en-route its next intermediate support near $52.50 level.
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