The EUR/USD pair closed the day marginally higher

EUR/USD

The EUR/USD pair closed the day marginally higher, despite positive US data supported the case for a December hike, and EU macroeconomic figures were generally disappointing. German's harmonized inflation remained unchanged monthly basis in November, while the year-on-year figure missed expectations, printing 0.7%. Economic sentiment in the Union improved by less-than-expected in November, with the economic sentiment indicator up to 106.5, and consumer confidence holding steady at 6.1.

In the US, the first revision of Q3 GDP showed that the economy grew by 3.2% from 2.9% in the preliminary estimate while the Conference Board Consumer Confidence Index rose significantly in October, up to 107.1 from 100.8 in October, back above pre-recession levels. Still, and when considering that the spread between the 10-year Treasury and the 10-Y German Bund is still over 210 basis points, levels last seen in 1989, chances of a EUR recovery remain limited, not to mention divergent policies between Central Banks.

From a technical point of view, the pair has made little progress, as it remains well below the 1.0700 region, the 23.6% retracement of the latest daily slide. Technical indicators in the daily chart have kept correcting extreme overbought conditions, but with the price contained, seems that the market is just waiting for another excuse to resume dollar's buying. In the 4 hours chart, the price is currently above a modestly bullish 20 SMA, while the RSI indicator aims higher around 55 and the Momentum indicator lacks directional strength within neutral territory, not enough to confirm a steeper recovery, but good enough to maintain the downside limited.

Support levels: 1.0590 1.0550 1.0505

Resistance levels: 1.0650 1.0700 1.0740

USD/JPY

The Japanese yen was the worst performer against the greenback, with the USD/JPY pair ending the day up at 112.56, trimming most of its weekly losses. The pair recovered up to 113.33 following the release of a better-than-expected US Q3 GDP revision, but quickly retreated back below the 113.00 level. Data coming from Japan showed that the country's unemployment rate remained unchanged at 3.0% in October, while household spending in the same month came in at -1.0% against 0.1% expected. On the bright side, retail sales improved yearly basis, falling just by 0.1% against an expected decline of 1.2%. Investors will pay extra attention to the US ADP report this Wednesday, in anticipation to Friday's NFP report, and may rally on an upward surprise. In the meantime, the short term picture shows that the risk is towards the downside, as in the 1 hour chart, the price is back below its 100 SMA, while technical indicators have retreated from overbought territory, heading lower around their mid-lines. In the 4 hours chart, the price remains far above bullish moving averages, but technical indicators have turned back south, with the Momentum unable to recover above the 100 level, supporting the shorter term outlook.

Support levels: 112.30 111.90 111.40

Resistance levels: 113.10 113.55 114.05

GBP/USD

The Pound held within its latest range against the greenback, underpinned by improving UK data released during London trading hours. According to data released by the Bank of England, mortgage approvals rose by the most in October since last March, up to 67.518K from a revised September figure of 63.594K. Also, net consumer credit surged to £1.62bln, against the £1.5bln expected and well above the previous month. The intraday advance stalled right below the weekly high of 1.2530, with the pair struggling now around the 1.2500 figure, and the 4 hours chart shows that the price recovered above its 20 SMA and the 200 EMA that anyway remain horizontal, reflecting the ongoing neutral tone. In the same chart, technical indicators have regained positive territory before turning flat, also indicating the absence of directional strength. Anyway, the pair has held once again above the daily ascendant trend line coming from 12088, around 1.2390/1.2410 for this Wednesday. An extension beyond 1.2530, could see the pair recovering towards the 1.2600 region, although further gains seem unlikely for the upcoming sessions.

Support levels: 1.2460 1.2420 1.2385

Resistance levels: 1.2530 1.2565 1.2610

AUD/USD

The AUD/USD pair closed in the red this Tuesday, but off its daily low of 0.7432. The Aussie fell at the beginning of the day, weighed by retreating commodities futures in China, further extending its decline with the US upward revision of Q3 GDP. Nevertheless, the pair recovered ground after the OECD, raised its outlook for Australian economic growth for this year and next, while surging industrial metal prices, also underpinned the antipodean currency. Despite the lower low for the week, the pair presents a bullish tone heading into the Asian opening, as in the 4 hours chart, the price is holding above a clearly bullish 20 SMA, which stands now a few pips above 0.7450 a strong Fibonacci support, while technical indicators have bounced from their mid-lines, maintaining strong upward slopes. The pair needs to extend its advance beyond 0.7500 to be able to rally further, with scope then to test the 0.7600 region, the next Fibonacci resistance.

Support levels: 0.7450 0.7400 0.7365

Resistance levels: 0.7500 0.7540 0.7580

Dow Jones

Wall Street recovered some ground this Monday, although gains were moderate by oil woes, with investors side-lined ahead of Wednesday's OPEC meeting. The Dow Jones Industrial Average added 23 points, to close at 19,121.60, while the Nasdaq Compose advanced 0.21% or 11 points, to end at 5,379.92. The S&P added 0.135 and settled at 2,204.66. The Dow's daily chart shows that the Momentum indicator has lost part of its downward strength right above its 100 line, while the RSI indicator has corrected within overbought territory, aiming now modestly higher around 72 as the 20 DMA maintains a strong upward slope in the 18,830 region, all of which supports a bullish extension towards fresh highs. Shorter term, and according to the 4 hours chart, the neutral stance persists, with the index still stuck around a horizontal 20 SMA, and the Momentum indicator still stuck around its 100 level, while the RSI indicator turned modestly lower around 59, this last limiting chances of a steeper decline.

Support levels: 19,066 19,005 18,960

Resistance levels: 19,136 19,180 19,230

FTSE 100

The FTSE 100 extended its decline this Tuesday, shedding 27 points to close at 6,772.00, dragged lower by oil prices' slump. The downside, however, was contained by better-than-expected UK credit figures, which underpinned the housing sector. Barratt Developments was among the best performers, up 2.28%, while Persimmon added 1.95%. Antofagasta led decliners, shedding 2.91%, followed by Fresnillo that closed 3.44% lower and BHP Billiton, down by 3.03%. The index has posted a lower low and a lower high daily basis, now developing below a bearish 20 SMA, currently at 6,802, whilst technical indicators head south within bearish territory. In the 4 hours chart, the index continues developing below all of its moving averages, while technical indicators have turned modestly lower right below their mid-lines, with not enough downward strength to confirm a bearish extension. Renewed selling pressure below the 6,730 region, will likely result in the index falling down to 6,656, this month low.

Support levels: 6,735 6,693 6,656

Resistance levels: 6,802 6,835 6,876

DAX

European equities posted modest advances this Tuesday, with the German DAX adding 37 points and ending the day at 10,620.49. The latest report from the Organization for Economic Co-operation and Development said that economic growth in the euro area is expected to remain subdued, not actually a surprise, but the news added to the political woes the region is suffering this year, affecting local shares. Still, most of DAX's members closed in the green, with RWE AG leading the advance, up by 3.34%, and Deutsche Bank erasing its Monday's gain, ending up 2.38% higher. The index holds a few points above the key 16,000 mark, but according to the daily chart technical readings, chances of further gains are limited, as technical indicators are stuck within neutral territory, with the Momentum still heading south, and the index stuck around a horizontal 20 SMA. In the 4 hours chart, technical readings favor a downward move, with the index unable to advance above a bearish 20 SMA, and technical indicators retreating from their mid-lines.

Support levels: 10,530 10,470 10,425

Resistance levels: 10,647 10,710 10,758

Nikkei

The Nikkei 225 lost 49 points or 0.27% this Tuesday to close the day at 18,307.04, undermined by a stronger yen and the negative close of Wall Street. Investors took some profits out of the table, with energy-related and export-oriented equities edging lower. Nevertheless, the benchmark remains near the multi-month high set last week, maintaining the bullish stance seen during the last three weeks. From a technical point of view, the daily chart shows that technical indicators are turning modestly higher after partially correcting extreme overbought readings, while the 20 DMA keeps advancing below the current level, in line with another leg higher. Shorter term, and according to the 4 hours chart, the neutral stance persists, as the benchmark seesaws around a horizontal 20 SMA, while the Momentum indicator heads nowhere around its 100 level and the RSI indicator turned south around 57.

Support levels: 18,322 18,267 18,202

Resistance levels: 18,377 18,422 18,475

Gold

Gold prices turned south this Tuesday, with spot ending the day around $1,188.30 a troy ounce, weighed by improving market sentiment, as stocks reversed their Monday losses, while the dollar remained strong. The commodity bounced from a daily low of 1,180.97, with the downside now limited as the market has pretty much priced in a FED rate hike next December, and is starting to focus in other probable risk events, such as the upcoming referendum in Italy or Austrian elections this weekend. Spot gold maintains a bearish tone in its daily chart, as technical indicators seem to have completed their upward corrections and are back heading south, whilst the 20 SMA has continued falling, now acting as dynamic resistance around 1,220.70. In the shorter term, and according to the 4 hours chart, technical readings present a neutral-to-bearish stance, with the price hovering around a horizontal 20 SMA and technical indicators hovering around their mid-lines. In this last time frame, the 100 SMA heads lower well above the current level, leaning the scale towards the downside.

Support levels: 1,178.60 1,170.90 1,161.65

Resistance levels: 1,197.55 1,210.60 1,220.70

WTI Crude Oil

Crude oil prices fell to their lowest in two weeks, with West Texas Intermediate crude oil prices touching $44.81 a barrel, hit by OPEC woes ahead of this Wednesday's meeting. There were headlines all through the day surrounding a possible oil production cap, with discord among member countries probably resulting in another disappointing result. The US benchmark lost almost 4% daily basis, settling at $45.23 a barrel, and the daily chart shows that the price is back below all of its moving averages, while technical indicators turned sharply lower, anticipating some further declines for this Wednesday. In the 4 hours chart, oil retreated after failing to advance beyond a bearish 20 SMA, while technical indicators have lost downward strength but remain well into negative territory. Upcoming direction will depend of course on the outcome of OPEC meeting, which will probably extend all through this Wednesday, with a negative outcome probably seeing the price breaking below the 42.50/60 region, the base of these last months' range.

Support levels: 46.45 45.70 45.10

Resistance levels: 47.65 48.20 48.90