Euro Dives As Swiss Franc Trims Gain Against Dollar
Euro dived against the US dollar after the market settled and traded back towards the last low.
US dollar managed to gain traction against the Swiss dollar after collapsing below the 0.8000 level yesterday.
Japanese Securities investment, released by Ministry of Finance came in at ¥455.1B, compared with the last reading of ¥20.1B.
In addition, the Foreign investment in Japan stocks figure was also released which came in at ¥-684.4B, compared with the last reading of ¥40.7B.
Japanese Tertiary Industry Index released by the Ministry of Economy, Trade and Industry increased by 0.2% in November 2014, whereas the last time decline was 0.2%.
German and the Euro area consumer price index are the major releases lined up today during the London session.
In the US, the consumer price index will be released today, which is expected to increase by 0.7% in December 2014.
The Japanese yen gained traction recently as the Swiss franc event caused downside reaction in the USDJPY pair. However, the downside was limited as the pair managed to hold the 116.00 support area. There is a bearish trend line formed on the 4 hour chart, which might act as a catalyst for the pair in the near term. One important point to note that the 100 and 200 moving average – 4H are sitting way above the current levels. So, one might say that the pair is under bearish pressure and it might continue trading lower in the near term. There is a minor divergence on the MACD which is pointing downside.
Intraday Support Level – 116.00
Intraday Resistance Level – 117.50
Overall, as long as the pair is below the trend line it might continue trading lower.
A break above it could take the pair towards the 118.50 level.
On the downside, initial support is around the 116.00 area. If the US dollar sellers manage to break it, then we can witness more losses in the near term. The next level of buying interest would be around the 115.20 level.
The Euro suffered heavy losses against the US dollar and the Japanese yen. The EURJPY pair cleared an important bearish trend line on the hourly chart, which kind of ignited sharp downside in the pair. The pair traded below the 136.00 support area and looks poised for more losses in the near term. We need to see how the Euro trades in the coming sessions, as selling pressure might increase. If the pair corrects higher from the current levels, then it might find resistance around the 23.6% Fibonacci retracement level of the last drop from the 147.19 high to 134.68 low.
Intraday Support Level – 134.60
Intraday Resistance Level – 136.80
Selling rallies around the broken trend line look like a good option.
A break below the last low would call for more losses moving ahead.
There is a lot of room on the downside for the EURJPY pair. It might head back towards the 134.00 or even the 132.00 support area.
New Zealand dollar traded lower this past week after solid gains against the US dollar, but found support around and important area which means there is a chance of recovery in the near term.
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