EUR/USD rebounds to test 1.0700 ahead of US GDP
The euro staged a solid comeback against its American counterpart in the European session, sending EUR/USD back on the bids in a bid to regain 1.07 handle.Currently, the spot now jumps +0.18% to fresh daily highs of 1.0699 at 1.0670, awaiting a decisive break above 1.07 barrier. The main currency pair stalled its downslide near 1.0660 region and from there took a sharp U-turn, recovering as much as 40-pips amid broad based US dollar sell-off, as the US treasury yields pared gains.Moreover, negative performance on the European stock markets boosted the funding currency euro, in turn aiding the recovery in EUR/USD. The European equities drop -0.30% to -0.60%. All eyes now remain on the US GDP report due later in NA session, which is expected to show that the US economy grew steadily in Q4 2016, albeit at a slower pace than in Q3.In terms of technicals, the pair finds the immediate resistance 1.0724/34 (5 & 100-DMA). A break beyond the last, doors will open for a test of 1.0750 (psychological levels) and from there to 1.0773 (7-week high). On the flip side, the immediate support is placed at 1.0645 (20-DMA) below which 1.0600 (key support) and 1.0573 (50-DMA) could be tested.
GBP/USD potential for further downside - Commerzbank
In view of Karen Jones, Head of FICC Technical Analysis, Cable could see a deeper retracement, likely to hold in the 1.2515/1.2420 region.?GBP/USD had a 13 count on the 240 minute chart yesterday and today we have one on the daily for caution we are exiting our longs as the risk is that we will see a deeper sell off. Dips lower are indicated to hold circa 1.2515/1.2420. Currently we remain unable to rule out further strength to the 1.2776 December high. Between here and 1.2836 lies several Fibonacci retracements and major resistance and we suspect that it will struggle here?. ?The market is bid above the 55 day ma at 1.2417 and the near term risk remains on the topside. We suspect that prices will need to go sub 1.2250 in order to alleviate immediate upside pressure. Support at 1.2250 guards the 1.1988/80 recent low?.
USD/JPY off highs, still above 115.00 ahead of US data
The greenback keeps its march north unabated at the end of the week, now lifting USD/JPY to test fresh peaks above the 115.00 handle.Higher-than-expected consumer prices in the Japanese economy for the current month have not dented the bearish note surrounding the safe haven JPY, helping the pair to advance to fresh tops above 115.00 the figure in early trade.Adding to the upside, the renewed bid tone around the buck seems to have found new grip after the Dollar Index probed lows in the sub-100.00 region in recent sessions, prompting dip-buyers to step in and at the same time hinting at the fact that maybe a low is in place.Spot in the meantime remains well underpinned by US yields, with the 10-year benchmark recently advanced to multi-day tops above 2.55% although easing some ground afterwards.Data wise today in the US, Durable Goods Orders, advanced Q4 GDP figures and the final print of the Consumer Sentiment for the current month are all expected to keep the interest around USD.As of writing the pair is gaining 0.53% at 115.16 and a break above 115.62 (high Jan.19) would open the door to 116.86 (high Jan.11) and finally 118.61 (2017 high Jan.3). On the flip side, the next support is located at 114.54 (23.6% Fibo of the November-December 2015 up move) ahead of 114.40 (low Jan.27) and then 112.49 (low Jan.24).
EUR/GBP spikes to 0.8515, reverses previous session losses to three-week low
The EUR/GBP cross snapped four days of losing streak and staged a goodish recovery on Friday to move back above 0.8500 psychological mark. Currently trading around 0.8515-20 band, testing session peaks, the cross has now reversed yesterday's losses to three-week lows amid ongoing profit-taking slide witnessed around the GBP/USD major. On Thursday, the cross remained under selling pressure for the fourth consecutive day in wake of upbeat release of Q4 UK GDP.In absence of any fundament drivers, Friday?s recovery move could be attributed to some short-covering following a slide of nearly 200-pips in the previous four trading sessions. With a relatively lighter economic docket, comments from the ECOFIN meeting could have some impact on the shared currency and eventually provide some impetus for the EUR/GBP cross.On the upside, 50-day SMA support break-point near 0.8525 region now seems to act as immediate resistance above which a fresh bout of short-covering should lift the cross beyond 0.8550-55 intermediate hurdle towards its next major resistance near 0.8585-90 region. Meanwhile on the downside, renewed weakness below 0.8500 handle, leading to a subsequent break below multi-week lows support near 0.8470 region, now seems to accelerate the slide towards monthly lows support near 0.8450 region, en-route 0.8420 support.
AUD/USD losing upside momentum - Commerzbank
Karen Jones, Head of FICC Technical Analysis at Commerzbank, has noted the recent upside in the Aussie Dollar seems to have run out of steam above 0.7600.Key Quotes?AUD/USD?s new high of .7608 was not been confirmed by the daily RSI this has diverged and reflects a loss of upside momentum.Currently the market?s dip lower is indicated to terminate circa .7505/.7435. We suspect that prices will need to go sub 7400, the 55 day ma, to alleviate upside pressure and trigger losses to .7312/00 then .7161/64, the recent lows?.?Above the market lies the .7648 2013-2016 channel (where it should struggle). Only above .7648 will negate our negative bias and introduce scope to the .7778/.7850 2016 highs and the 38.2% retracement?.
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