The EUR/USD pair fell to a fresh yearly low of 1.0525 early US session

EUR/USD

The EUR/USD pair fell to a fresh yearly low of 1.0525 early US session, on renewed dollar demand, later fueled by impressive US October Durable Goods Orders that jumped 4.8% in the month. The core reading that excludes transportation equipment demand, which is often volatile from month to month, advanced 1.0% against the expected 0.2%  gain. Additionally, the preliminary Markit  Manufacturing PMI came in at 53.9, beating expectations of 53.4, while the Michigan Consumer Sentiment index printed 93.8, its highest in six month. On the downside, weekly unemployment claims rose to 251K in the week ending November 18, while New Home Sales fell in October, down by 1.9%.

The pair posted a moderated recovery ahead of the release of FOMC Minutes, which failed to motivate investors. As the market already knew, that most FED officials saw a rate hike appropriate 'relatively soon.' From a technical point of view, the pair is poised to extend is slide, given that it remains below the 1.0600 level, and below its moving averages in the 4 hours chart, with the 20 SMA offering an immediate resistance around the level. Technical indicators in the mentioned chart has posted a modest bounce within bearish territory, but clearly reflecting the lack of buying interest around the pair. A rate hike for December has been fully priced in, yet the greenback has not yet seen its top. December 2015 low is the immediate support, at 1.0505, with followed by March 2015 low of 1.0461. 

Support levels: 1.0505 1.0460 1.0420 

Resistance levels: 1.0590 1.0640 1.0675 

USD/JPY

The Japanese yen was among the worst performers, falling against the greenback to levels last seen in April this year. The dollar index accelerated its advance mid US afternoon, rallying up to 101.91, the highest since April 2003, weighing on the Japanese currency. Also, US short-end bond yields spiked to a six-and-a-half year high, with the 2-year yield up to 1.14%. The pair has reached extreme overbought conditions in the daily chart, but technical indicators keep heading higher with the RSI indicator currently at 83. The pair has added over 1,100 pips ever since bottoming at 101.18 following US election's result, but there's still room for further advances up to the 114.00 region, the 23.6% retracement of the Abenomics rally between 2011 and 2015. In the short term, the 1 hour chart shows that technical indicators have corrected partially from extreme readings, but turned flat in overbought territory, whilst the price continues well above a bullish 100 SMA, all of which limits chances of a downward move. In the 4 hours chart, technical indicators have pared gains, but hold far above their mid-lines, while the moving averages maintain their bullish slope well below the current level, also maintaining the risk towards the upside. 

Support levels: 112.30 111.90 111.45

Resistance levels: 112.95 113.40 113.85

GBP/USD

The Pound has been the best performer against a broadly strong USD, with the GBP/USD pair settling around  1.2440/50  after the release of the uneventful FOMC Minutes, late in the US afternoon. There were no macroeconomic releases in the UK, although Chancellor Philip Hammond  delivered an Autumn Budget Statement. As expected, the document highlighted the probable risks for the UK economy following the Brexit. The Office for Budget Responsibility updated its GDP forecasts, now seeing the economy expanding 2.1% in 2016, 1.4% in 2017 and 1.7% in 2018, while, in order to boost productivity, Mr. Hammond said the UK will prioritize investment in infrastructure and innovation, funded through combined tax and spending measures. A daily descendant trend line coming from November 11th high of 1.2673, stands a few pips above the current level, while the price is struggling around a flat 200 SMA and above the 20 SMA in the 4 hours chart, indicating that the pair may recover further on a break above 1.2475, the mentioned trend line. In the mentioned chart, technical indicators head higher above their mid-lines, also supporting an upward extension. Still, the pair needs to stabilize above 1.2520 to be able to advance further this Thursday. 

Support levels: 1.2395 1.2350 1.2310

Resistance levels: 1.2475 1.2520 1.2560

AUD/USD

The AUD/USD pair advanced up to 0.7444 this Wednesday, with the Aussie outperforming its major rivals during the past Asian session, fueled by a sharp advance in iron ore prices, and improved Chinese business sentiment, as the indicator jumped to 53.1 in November from previous 52.2. Investors ignored a disappointing Australian data, as Construction Word Done fell by 4.9% against an expected decline of 1.7% in Q3. The pair retreated on dollar's strength, bottoming on the day at 0.7372, retreating from a major resistance, as 0.7450 stands for the 38.2% retracement of this year's early rally. Short term, the 1 hour chart shows that the price is developing below a modestly bearish 20 SMA, while technical indicators head south within bearish territory, but also that the price has spent most of the last session consolidating. In the 4 hours chart, the 20 SMA offers an immediate support around the mentioned daily low, while the Momentum indicator heads south above its 100 level and the RSI stands flat around 45, limiting chances of a steeper decline. 

Support levels: 0.7370 0.7330 0.7290 

Resistance levels: 0.7420 0.7450 0.7500 

Dow Jones

Wall Street's rally continued this Wednesday, with the Dow and the S&P extending to fresh record highs, for a third consecutive session. The Dow Jones Industrial Average added 59 points and closed at 19,083.18, while the S&P added 0.08% and closed at 2,204.72. The Nasdaq Composite, however, pulled modestly back, down by 0.11% or 5 points, to close at 5,380.68. Stocks head into a long weekend, given that the US market will remain close this Thursday due to the Thanksgiving holiday, while it's due to an early close on Friday. Volumes were low and stocks will see little action until next Monday, but the bullish potential remains intact given that in the daily chart, technical indicators continue heading north, despite being in overbought territory. Shorter term, the 20 SMA heads higher below the current level, although with limited upward strength, while the RSI indicator ticked north around 72 and the Momentum indicator remains flat above its 100 level, indicating that the benchmark still has room to go higher during the upcoming sessions. 

Support levels: 19,014 18,952  18,910

Resistance levels: 19,085 19,130 19,175 

FTSE 100

The FTSE 100 closed the day pretty much unchanged, 2 points lower at 6,817.71, trimming its early gains after the release of the UK Autumn Statement that revised down the kingdom growth prospects. The mining-related sector was mixed, with strong iron ore prices lifting BHP Billiton that closed 2.17% and Rio Tinto that ended up 2.2%. A slump in gold prices, however,  made of Randgold Resources the biggest loser, down by 5.33%, followed by Fresnillo that shed 2.96%. The technical picture for the index shows a modest upward potential, given that the index has been posting higher lows daily basis for at least two weeks, while the Momentum indicator aims north around its 100 level and the RSI consolidates around 48. Still, the benchmark is stuck around the 20 and 100 SMAs, both converging around the current 6,830 region. In the 4 hours chart,  with the 20 SMA heading north below the current level, but advances being contained by a bearish 100 SMA, and technical indicators heading nowhere around their mid-lines. 

Support levels: 6,815 6,772 6,734

Resistance levels: 6,876 6,925 6,970

DAX

European equities closed the day generally lower, undermined by a decline mining and banking shares. The German DAX fell 0.48% or 51 points to settle at 10.662.44, despite the release of encouraging PMI readings, which showed that he rate of economic growth accelerated in the Euro zone. Continental AG was the worst performer, shedding 2.47%, followed by Daimler that lost 1.83%, and Commerzbank that closed 1.62% lower. Infineon Technologies topped the winner's list, up by 2.62%, followed by Volkswagen that added 1.60%. The index remained within its latest range, falling intraday down to 10,601, still finding buyers around the critical figure. In the daily chart, this last level converges with a horizontal 20 DMA, while technical indicators remain horizontal within positive territory, reflecting the absence of directional strength. In the 4 hours chart, the benchmark maintains the neutral stance, given that technical indicators have turned flat around their mid-lines, while it trades within horizontal moving averages. 

Support levels: 10,648 10,603 10,555    

Resistance levels: 10,728 10,786 10,834 

Nikkei

A bank holiday in Japan, the observance of Labor Thanksgiving day, kept banks closed in the country this Wednesday. The Nikkei's latest registered close was at 18,162.94, but the benchmark is poised to start the day above 18,400 this Thursday, having advanced in electronic trading, amid fresh record highs in Wall Street and a rally in the USD/JPY pair up to ¥112.97. The Japanese index is at its highest since early January this year, and the daily chart maintains the bullish bias alive, given that technical indicators have resumed their advances within overbought territory, with no signs of changing course. In the shorter term, and according to the 4 hours chart, a bullish 20 SMA keeps leading the way higher, now acting as dynamic support at 18,157, while technical indicators have lost their upward strength, but remain well above their mid-lines, suggesting some consolidation ahead, before a new leg higher. 

Support levels: 18,342 18,270 18,232

Resistance levels: 18,435 18,496 18,560

Gold

Dollar's strength sent spot gold below the 1,200.00 mark for the first time since July 2nd, with the commodity trading as low as $1,181.65 a troy ounce before finally paring losses. Following a brief upward correction on Monday, gold resumed its decline on the back of renewed dollar's demand, ending the day around 1,188.70. Strong US economic data, alongside with FOMC Minutes, further reaffirmed the case for a US interest-rate hike next December. Technically, the commodity is still biased lower, given that in the daily chart, technical indicators have resumed their declines, heading now south in oversold territory, whilst the 20 SMA maintains its bearish slope far above the current level, in the 1,250.00 region. In the 4 hours chart, the latest upward correction has turned technical indicators flat within oversold territory, while the price has fallen below a bearish 20 SMA after reiterated failures to surpass it, all of which supports another leg lower. 

Support levels: 1,181.60 1,174.50 1,162.40    

Resistance levels: 1,192.15 1,202.90 1,210.60

WTI Crude Oil

Crude oil prices closed the day marginally lower, with West Texas Intermediate futures settling around $47.90 a barrel, despite encouraging US stockpiles data. According to the EIA, US crude inventories fell by 1.3 million barrels in the last week, compared with analysts' expectations for an increase of 671,000 barrels. The API report, released late Tuesday, reported a 1.27 million-barrel decline. Still, oil was unable to rally, undermined by lingering doubts over an OPEC deal to cut output. The daily chart shows that the commodity posted a lower high, but remain above Tuesdays low, and still well above its moving averages, while technical indicators have turned modestly lower, holding, however, within bullish territory. In the 4 hours chart, the 20 has extended its advance, and now approaches the 200 SMA, this last at 47.70, an immediate support, while technical indicators continue pulling back from overbought territory. Price´s behavior has been quite choppy this Wednesday suggesting the commodity may consolidate ahead of the OPEC's meeting, next November 30th.

Support levels: 47.70 47.10 46.50    

Resistance levels: 48.65 49.20 49.95