EUR/USD on a Daily TF traded flat through the holidays and slightly above the 38.2% Fibo. The price is currently around 1.10961. The pair is using 13EMA as resistance as it approaches the local trend line down.
Today we had the release of U.S. Initial Jobless Claims, which came in slightly above the forecast at 222K while the Jobless Claims 4-Week Avg. has increased to 228K from 225.75 previously.
There is a divergence between the price and the MACD. The MACD is pointing down and a bearish histogram is increasing, while the price created a higher high and higher low to the local trend line down. The Parabolic SAR is pointing down.
If the price breaks above the 13 EMA and the local trend line, the next targets for resistance will be around the 50% Fibo level that coincides with the global trend line down around 1.11456. The next resistance will be around 1.11747.
First support is around 1.10642, which is the top of the Ichimoku Cloud. Further down support will be around 1.10524, and then 1.10393.
GBP/USD on a Daily TF is showing a slight recovery correction after 6 days of solid losses. The price is gravitating towards the 13 EMA as resistance.
The MACD is pointing down along with the Parabolic SAR and 13 EMA. It seems that the price broke a psychological level of support down and is now using the level as a re-test. The DMI is registering a downtrend as well (27.5745).
Resistance: R1 13 EMA 1.30481, R2 50% Fibo 1.31675.
Support: S1 38.2% Fibo 1.28821, S2 1.27793, S3 1.26055.
USD/JPY on a Daily TF is trading in a range using the 61.8% Fibo level as support. The pair experienced bullish momentum earlier in the day as Japan released worse than expected Housing Starts YoY of -12.7%, which is below the forecast of -8.1% and previous figure of -7.4%.
Construction orders YoY also declined to -1.2% from 6.4% previously. The speech by BoJ Governor, Haruhiko Kuroda, on the other hand was laced with optimism. Mr. Kuroda mentioned the 2020 Olympics that will take place in Japan and also stated that ‘Japan's economy has improved significantly, with the virtuous cycle operating.’.
The pair is attempting to break the 109.600 resistance up. The Parabolic SAR is pointing up along with the 13 EMA and MACD. A bullish MACD histogram is increasing.
Resistance: R1 109.900, R2 110.244
Support: S1 108.922, S2 50% Fibo 108.423