EUR/USD prints fresh lows under 1.0470
EUR/USD continues to move with an intraday bearish bias, on a quiet session. The pair printed a fresh low under 1.0480. It has fallen 25 pips during the last five hours. The pair dropped to 1.0466 and it was trading at 1.0467, 50 pips below Friday’s closing price. Markets continue to move in holiday mode. Price action remains limited and it could continue until Tuesday’s European session. The most important economic release today was the European PMI. The headline number for the Eurozone came in line with expectation at 54.9 (similar to the flash estimate), the highest reading since April 2011. “Eurozone manufacturers are entering 2017 on a strong footing, having ended 2016 with a surge in production”, said Chris Williamson, Chief Business Economist at Markit. Further slides below 1.0470/75 could lead to a decline down to the 1.0420/40 region, while below 1.0410 the downward momentum can extend towards 1.0370/80. “Should the pair recover the 1.0500 region, the downward potential will be limited, although it will need to advance beyond 1.0530 to be able to regain some upward strength and advance up to 1.0575, the 23.6% retracement of its latest bearish run.”
GBP/USD meets fresh supply, down to test 10-DMA
Having witnessed a brief consolidative phase below 1.2350 levels in early trades, the GBP/USD pair finally broke to the downside amid pick-up in generalized demand for the greenback and rebound in the European equities, as risk sentiment improved on upbeat Eurozone PMI reports.However, the downside appear capped in cable as fresh selling seen in the EUR/GBP cross lends support to the GBP somewhat.Looking ahead, the major will closely watch out RO-RO trends for fresh incentives as both the UK and US markets are closed in observance of New-Year’s holiday.While attention now turns towards the UK manufacturing PMI and US ISM manufacturing reports due on the cards tomorrow for further impetus.In terms of technical levels, upside barriers are lined up at 1.2355 (daily R1), 1.2389 (weekly high) and 1.2400 (round figure). While supports are seen at 1.2296 (10-DMA) and 1.2242 (Dec 30 low) and below that at 1.2200 (zero figure).
USD/JPY extends the rebound to 117.50
The bid tone around the US dollar is seen growing bigger in the European session, driving USD/JPY further beyond 117 handle.The pair is last seen exchanging hands at fresh three-day highs of 117.47, jumping +0.41% on the day. The recovery mode seen around the USD/JPY pair appears to have gained further traction in the European session, as the demand for US dollar is seen returning amid holiday-thinned markets.Resurgence of USD buying is largely on the back of investors creating fresh long positions heading into the first day of 2017, and now awaiting fresh batch of significant US macro releases due on the cards later this week, with the highly influential payrolls data on tap this Friday.While the yen fails to take advantage from slightly risk-averse market conditions, as the European equities kick-off the New Year on a negative note.The major finds immediate resistance at 117.50 (psychological levels). A break above the last, the major could test 117.83 (Dec 28 high) and 118 (zero figure) beyond the last. While to the downside, the immediate support is seen at 116.45 (daily S3) next at 116.05 (2-week lows) and below that at 115.80 (psychological levels).
USD/CHF catches fresh bid, tests 5-DMA
The USD/CHF pair broke the Asian consolidation box to the upside and edge sharply higher, with the bulls making a comeback on 1.02 handle. The Swiss Franc remains solid-off into renewed buying interest seen around the greenback, as the USD bulls extend the recovery from a dip seen on the release of worse-than expected Chicago PMI report.While a dramatic turnaround in the risk sentiment, after the European stocks erased losses and swung higher in positive territory, also diminished the safe-haven bids for the Swiss currency and therefore, boosted USD/CHF.Later today, the major will continue to get influenced by the broader markets sentiment in absence of any fundamental news and in wake of holiday-thinned markets.To the upside, the next resistance is located at 1.0245 (10-DMA) and above which it could extend gains to 1.0301 (Dec 21 high) and 1.0331 (Nov 2015 high) next. To the downside, immediate support might be located at 1.0150 (psychological levels) and below that 1.0120 (50-DMA) and from there to 1.0100 (round figure).
NZD/USD drops to 0.6910 on a quiet start of 2017
NZD/USD extended the decline that started during the last American session of 2016. The pair opened lower and bottomed on European hours at 0.6910, the lowest since last Wednesday. During the last hours, it has been steady, moving in a small range, between 0.6935 and 0.6910. Most of the pairs in the forex market are moving in minor ranges, in a quiet session as financial markets continue in holiday mode. No economic numbers will be released in the next hours. During the weekend, the Chinese PMI report for December (official) showed a decline from 51.7 to 51.4, slightly below consensus forecast of a 51.5 reading. The kiwi opened the week stronger against the Aussie and despite the slow moves, it managed to reach multi-month highs.
AUD/USD takes a sharp U-turn, multi-month lows eyed?
The Australian dollar saw a sharp reversal against its American counterpart in the European session, knocking-off AUD/USD sharply below 0.72 handle.Currently, the AUD/USD pair drops -0.47 to trade near fresh daily troughs of 0.7166, losing sight of 0.72 handle. Holiday-thinned trading conditions are seen exaggerated the move lower in the Aussie, with the bears completely unperturbed by re-emergence of risk-on moods on first trading day of 2017.The major extends the reversal from above 0.72 levels, as the European traders kick-off the New Year selling-off the AUD in wake of weaker-than expected Chinese manufacturing PMI reports, which re-enforced China slowdown concerns into markets. China is Australia’s biggest export partner.Markets now look forward to key economic updates from the US and Australian calendar later during this week, in order to gauge near-term direction on the spot.The pair finds the immediate resistance at 0.7250 (key resistance) above which gains could be extended to the next hurdle located 0.7277 (20-DMA) and 0.7300 (zero figure). On the flip side, the immediate support located 0.7166 (daily low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7154/52 (multi-month lows) and below that at 0.7100 (key support).
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