EUR/USD on a Daily TF had a bearish end last week. The pair dropped to 1.10663 which is about 61.8% from the December uptrend. The move is mainly supported by positive data from the United States and an easing in trade tensions. Consumer Spending in November increased by 0.5%, Personal Spending came in line with expectations at 0.4% and Q3 GDP at 2.1%.
The Eurozone, on the other hand, did not have an optimistic end last week. Germany’s GfK Consumer Climate dropped to 9.6, below the forecast of 9.8 and the previous 9.7. The preliminary reading on Euro Consumer Confidence declined to -8.1, which is well below the -7.0 forecast and the previous level -7.2.
As the market thins for the holidays, trade tensions between the United States and China also seems to have placated. Phase one of the trade agreement is said to be signed by top officials in the beginning of January.
Today, the United States releases the Core Durable Goods Orders report at 1:30pm GMT. The forecast is to the downside, at 0.1% from 0.5% in October, which is in line with the decline in ISM Manufacturing PMI (48.1) and Retail Sales (0.2%). Later today we’ll have the release of New Home Sales at 3pm GMT.
The pair is slightly above the 48 EMA, currently trading around 1.10794. The Parabolic SAR has reversed and is pointing down. The MACD line crossed the Signal line down. We have the beginning of a bearish histogram.
Resistance: R1 1.11, R2 1.11162, R3 1.11500.
Support: S1 1.10646, S2 1.10524, S3 1.10393.
GBP/USD on a Daily TF is extending losses and trying to break below support levels of around 1.29799. This is the 6th consecutive bearish day for GBP/USD following PM Johnson’s re-election and new Brexit fears.
The MACD bearish histogram is increasing. -DI crossed +DI up, and ADX is registering a trend at 30.0113.
Resistance: R1 13 EMA 1.30793, R2 50% Fibo 1.31675, R3 1.33325.
Support: S1 48 EMA 1.29298, S2 1.27793, S3 1.26055.
USD/JPY on a Daily TF continues to trade in a range. The pair remains above 61.8% Fibo around 109.402. The pair tested the 13 EMA as support. Tomorrow, we will be able to review the Bank of Japan Monetary Policy Meeting Minutes and on Thursday there will be a speech by BoJ Governor Kuroda.
Resistance: R1 109.600, R2 109.900 – 110, R3 110.244.
Support: S1 108.922, S2 108.423, S3 108.