EUR/USD struggling to gain momentum beyond 1.0400 handle
The EUR/USD pair held on to its tepid recovery gains, albeit has struggled to gain further traction, and extended its consolidative price action throughout the European session.Currently trading marginally above 1.0400 handle, a mild US Dollar retracement seems to be the only factor supporting the pair's recovery from fresh 14-year lows touched on Tuesday. The broader US Dollar Index retreats from 14-year high as investors seemed inclined to take some profits off the table following the recent up-surge in wake of Donald Trump's surprise victory in the US presidential election and hawkish FOMC forecast for 2017.Looking at the broader picture, today's rebound could be seen as a technical pull-back from near-term oversold conditions and hence, would be categorized as a corrective move within a broader downtrend. Later during NA session, existing home sales data from the US would be looked upon for short-term trading opportunities ahead of key US macro data on Thursday, including the final GDP print for Q3 2016.A follow through buying interest above session peak resistance near 1.0420 region is likely to accelerate the up-move immediately towards 1.0445-50 resistance area above which a fresh bout of short-covering has the potential to lift the pair towards 1.0500 psychological mark resistance.Meanwhile on the downside, sustained weakness below 1.0385-80 immediate support seems to drag the pair back towards Tuesday's multi-year lows support near 1.0350 region, which if broken should expose 2003 yearly lows support near 1.0335 level.
GBP/USD recovers lost ground, jumps to fresh session peak
After an initial drop to 1.2323 level, the GBP/USD pair managed to recover the lost ground and has now jumped to a fresh session peak. Currently trading around 1.2385 region, the pair continues to find some buying interest around 1.2320 region marking 23.6% Fibonacci retracement level of 1.3439-1.1980 recent downslide. A mild greenback retracement, with the US Dollar Index correcting from Tuesday's 14-year peak, further assisted the pair to defend monthly lows support.In absence of any fresh fundamental trigger, the latest leg of recovery could be attributed to short-covering after bears repeated failed to drag the pair below 1.2300 handle, held since early November. Moving ahead, today's US economic docket, featuring the release of existing homes sales for November, might provide fresh impetus ahead of Thursday's key GDP data from UK and the US.Immediate resistance on the upside is pegged at 1.2400 handle above which the pair is likely to aim towards 50-day SMA resistance near 1.2420 region. On the downside, weakness back below 1.2360 level might continue to find support near 1.2320 region, which if broken would expose 1.2270-80 support, en-route 1.2240 level.
USD/JPY continues to back away from 118.00
USD/JPY came under renewed pressure over the last minutes and fell to fresh daily lows, although it continues to trade within its recent range near multi-month highs.USD/JPY failed to sustain gains above the 118 mark and dropped nearly 100 pips back to the 117.10 area as the greenback weakened a tad across the board. At time of writing, the pair is trading at the 117.30 area, 0.44% below its opening price, although the broader picture continues to look bullish.The dollar has risen sharply over the last days after the FOMC raised rates last week and offered a more hawkish view for 2017. In the data front, existing home sales for November is due next.In terms of technical levels, next supports are seen at 117.00 (psychological level), 116.46 (10-day SMA) and 115.00/114.94 /psychological level/20-day SMA). On the other hand, resistances line up at 118.00/05 (psychological level/Dec 21 high), 118.65 (Dec 15 high) and 119.00 (psychological level).
AUD/USD attempting to build on yesterday's recovery move
Having posted a session low at 0.7240 level, the AUD/USD pair gained some traction and is now building on Tuesday's recovery move.Currently trading around 0.7265-70 band, the US Dollar extended its profit taking slide during early NA session, as investors continue to lock-in some profits from recent gains, and has been the sole driver for the pair's recovery move on Wednesday. In fact, the US Dollar Index has now corrected below 103.00 handle ahead of US data, due just a short while from now.Today's US economic docket features the release of existing home sales data, which would be looked upon to grab some short-term trading opportunities. Investors, however, will remain focused on Thursday's key US macro data, which if adds to the Fed's hawkish economic outlook would lend further support to the prevalent strong bullish sentiment surrounding the greenback.From current levels, 0.7280 level is likely to act as immediate resistance above which the pair seems all set to reclaim 0.7300 handle and head towards its next resistance near 0.7325-30 region. On the downside, 0.7240 level now becomes immediate support to defend, which if broken has the potential to drag the pair below 0.7220 (yesterday's low), and 0.7200 round figure mark, towards its next major support near 0.7150-45 horizontal zone.
USD/CAD struggling for direction amid higher oil prices
The USD/CAD pair tried hard to reverse part of yesterday's losses but ran through fresh offers just below 1.3400 handle and surrendered all of its daily gains.Currently trading around 1.3365-70 band, nearly unchanged from yesterday's closing level, the pair reversed early spike to the vicinity of 1.3400 handle. Higher oil prices, with WTI crude oil holding comfortably above $53.00/barrel mark, is lending support to the commodity-linked currency - Loonie. Moreover, extension of the US Dollar's corrective slide, from yesterday's multi-year tops, was also seen contributing to some selling pressure around the major. The downslide, however, seems to have been limited for the time being, just above 50-day SMA immediate support, as investors awaited for the official EIA data on US crude stockpiles and provide fresh impetus in oil market and eventually drive the USD/CAD major. From the US, existing home sales data might trigger some short-term momentum play, but key focus would be on a flurry of important macro releases on Thursday, including CPI and monthly retail sales data from Canada, and final GDP print, durable goods orders from the US. Immediate downside support is pegged at 50-day SMA near 1.3350 region, which if broken is likely to accelerate the slide towards weekly lows support near 1.3315 area ahead of 1.3300 round figure mark. On the upside, momentum above session peak resistance near 1.3385 level, leading to a subsequent strength above 1.3400 handle, is likely to lift the pair towards 1.3435 (yesterday's high) en-route 1.3465 (Nov. 30 high).
USD/CHF falls further, hits 2-day lows
USD/CHF is in correction mode, extending a pullback from 6-year highs as the dollar is facing some profit-taking across the board.USD/CHF failed once again to consolidate above the 1.0300 level and pulled back, slipping to a low of 1.0223 in recent dealings. Despite today’s correction, the pair continues to trade fairly close to its 6-year peak scored last week at 1.0343. At time of writing, the pair is trading at 1.0235, down 0.43% on the day. On the data front, existing home sales for November is due next.In terms of technical levels, next supports could be found at 1.0220/14 (Dec 19 low/10-day SMA), 1.0200 (psychological level) and 1.0163 (21-day SMA). On the flip side, resistances are seen at 1.0295 (Dec 21 high), 1.0319 (Dec 20 high) and 1.0343 (6-year high, Dec 15) ahead of 1.0400 (psychological level).
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