Majors pairs traded mixed Monday, although not far from Friday's closing levels. The euro/dollar pair advanced up to 1.0899 during the European morning after retesting 1.0859, past week's low at the beginning of the day.
Data coming from Europe showed that growth accelerated in the region according to the preliminary October PMIs, with the EU Markit composite printing 53.7. Despite the good news, the ECB is largely expected to extend its QE program next December, enough to maintain the upside limited in the pair.
Later a couple of FED speakers may imprint some life to the greenback although the center of attention will be the October preliminary US Markit manufacturing PMI, expected at 51.6 from previous 51.5.
Technically, the short-term picture for the pair is modestly positive, given that in the one-hour chart, the price is above a now modestly bullish 20 SMA while technical indicators are aiming modestly higher within positive territory, although below their daily highs, indicating limited buying interest. In the four-hour chart, however, technical readings present a strong bearish potential, given that the price is developing well below a bearish 20 SMA, while technical indicators have resumed their slides after correcting oversold readings.
Support levels: 1.0870, 1.0840, 1.0800.
Resistance levels: 1.0910, 1.0950, 1.1000.
The pound/dolar pair trades within a tight range some 20 pips either side of the 1.2200 figure, unable to find direction. The release of the CBI quarterly industrial trends survey showed that manufacturing output and orders grew over the last quarter with export volumes growth being the strongest in over 2½ years, due to a weaker pound.
Still uncertainty over the economic future of the kingdom due to the upcoming Brexit weighs more. The short-term picture shows a modest positive tone as the price is developing above a bullish 20 SMA, currently around 1.2220, while technical indicators lack directional strength but hold within positive territory. In the four-hour chart, the price is unable to advance beyond a horizontal 20 SMA, while technical indicators head higher below their mid-lines, losing upward strength.
The upside potential seems well limited, although discouraging U.S. data can see the pair retesting the 1.2330 region, a major static resistance level where selling interest is expected to surge.
Support levels: 1.2190, 1.2160, 1.2125.
Resistance levels: 1.2250, 1.2290, 1.2330.
The dollar/yen is modestly higher ahead of U.S. data. The dollar/yen pair traded as high as 104.05 ahead of the U.S. opening, unable however, to get rid of the neutral tone seen last week, as the pair keeps trading in tight intraday ranges. The one-hour chart shows that the price is above its 100 and 200 SMAs but also that technical indicators are retreating toward their mid-lines within positive territory, at least suggesting no selling interest around the pair.
In the four-hour chart, however, the pair presents a modest positive tone, as the price remains well above a bullish 100 SMA, while technical indicators are recovering from around their mid-lines. The immediate resistance comes at 104.20, with a break above it supporting a retest of the monthly high in the 104.60 region.
Support levels: 103.70, 103.25, 102.90.
Resistance levels: 104.20, 104.60, 105.00.
The Australian dollar/U.S. dollar pair trades near a daily high of 0.7640, retreating modestly alongside oil prices. Nevertheless, the market was extremely quiet this Monday, and as the rest of the major pairs, it's confined to a tight intraday range. The short-term picture is modestly bullish, as the price is above its 20 SMA that turned north during the European morning while technical indicators are also turning higher within positive territory, although with no momentum.
In the four-hour chart, the pair presents a clear bearish stance, as technical indicators have resumed their slides within negative territory after correcting oversold readings, while a sharply bearish 20 SMA caps the upside around 0.7640.
Support levels: 0.7600, 0.7560, 0.7525.
Resistance levels: 0.7640, 0.7690, 0.7720.
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