The greenback pared gains at the end of last week

EUR/USD

The greenback pared gains at the end of last week, mostly due to the long Thanksgiving holiday in the US. The following pullback has been quite shallow, particularly against the EUR and the JPY, driven by profit taking rather than by diminishing interest in US assets. The EUR/USD pair closed the week around 1.0600, flat on the week, but has extended its yearly decline down to 1.0517. The Minutes of the FOMC meeting released last Wednesday, pretty much confirmed a rate hike next December, with the market having fully priced it in. During the upcoming days, the last of the month, focus will be on the November US jobs' report, to be released on Friday, and the final Markit manufacturing PMIs in the EU, alongside with the region's inflation.

After falling for two consecutive weeks, the EUR/USD pair has ended this past one with a doji, indicating that the market is now beginning to doubt about pushing the price further lower. Daily basis, however, the price has retrace barely 10% of its latest decline, while technical indicators are finally bouncing from extreme oversold levels, but remain deep in the red, as the 20 SMA accelerated its decline above the current level, all of which suggests that the upward potential remains well limited. In the shorter term, an according to the 4 hours chart, the price is still attached to a modestly bearish 20 SMA and well below the 100 and 20 SMAs, while the RSI indicator consolidates around 50, and the Momentum indicator aims modestly higher above its 100 level, suggesting the pair may extend its correction this Monday, up to 1.0700/10, the 23.6% retracement of its latest daily slump.

Support levels: 1.0550 1.0505 1.0460

Resistance levels: 1.0610 1.0650 1.0700

USD/JPY

After hitting a fresh 8-month high of 113.89, the USD/JPY pair retreated last Friday, to settle around the 113.00 figure. The rally was backed by a continued advance in US Treasury yields, and a modest improvement in Japanese core inflation, the BOJ's preferred inflation measure, to an annual rate of 0.3% in October. The pair has stalled its rally a few pips below a major long term resistance, the 23.6% retracement of the 2011/15 rally at 114.00, while technical indicators in the daily chart have lost upward strength and are turning south, but remain in extreme overbought territory, whilst the 100 and 200 SMAs are slowly turning higher, far below the current level. Nevertheless, and as long as the price holds above the 111.40/60 region, the downward potential seems quite limited, and chances will remain towards the upside. In the 4 hours chart, the Momentum indicator has turned sharply lower, while the RSI indicator consolidates near overbought levels and the moving averages keep advancing below the current level. Still, and given that the price remains in a tight consolidative range near the multi-month high, the risk of a steeper decline seems also limited in the shorter term.

Support levels: 112.70 112.30 111.90

Resistance levels: 113.55 114.05 114.40

GBP/USD

Following a sharp advance on Monday, the GBP/USD pair entered in a consolidative phase above the 1.2400 level, as political uncertainty surrounding the Brexit, has once again pushed investors away from the pair. Data coming from the UK gave little clues, as the second revision of the UK Q3 GDP came in as expected and previous at 0.5%. For the upcoming days, the most relevant macroeconomic release will be the November UK Markit Manufacturing PMI, but the calendar will remain light. Having closed the last three days with dojis, the daily chart shows that there's a modes upward potential, given that the pair is trading above a daily ascendant trend line coming from late October, currently around 1.2370, whilst technical indicators head modestly higher within neutral territory. Also, and in the same chart, the price is stuck around a slightly bullish 20 SMA, although no upward momentum is present. In the 4 hours chart, the technical picture is neutral, with the price hovering around horizontal moving averages and technical indicators having turned lower right above their mid-lines.

Support levels: 1.2410 1.2370 1.2320

Resistance levels: 1.2475 1.2520 1.2560

AUD/USD

The Australian dollar recovered against its American counterpart after bottoming at 0.7310 this last week, ending it around the 0.7450 Fibonacci level, which has played a major role as support or resistance for the last five months. The rally in the Australian currency found support in rising commodities' prices, with iron ore and cooper sharply higher on Friday, as the USD Index pulled back from a multi-year high. There were no major risk events in Australia, which may also helped the currency. By the end of the week, the AUD was among the best performers against the greenback, rallying up to 0.7468, but further gains will depend on the ability of the market to push the price beyond the mentioned Fibonacci resistance. Technically, the daily chart shows that the 20 SMA maintains a sharp bearish slope well above the current level, now around 0.7530, while technical indicators have kept correcting higher and maintain upward slopes, but hold within bearish territory. In the 4 hours chart, the pair is biased higher according to technical readings, given that the price is developing above a bullish 20 SMA, while technical indicators have bounced strongly from their mid-lines, maintaining their upward momentum.

Support levels: 0.7410 0.7370 0.7330

Resistance levels: 0.7450 0.7490 0.7530

Dow Jones

Wall Street rallied to fresh record highs on Friday, with the DJIA ending the day at 19,152.14, up by 0.36%, and the S&P up 8 points to 2,213.35, bolstered by gains in consumer stocks at the beginning of the holiday season. US stocks rallied for a third consecutive week, after Trump's victory triggered speculation of upcoming reduced corporate taxes and regulation, and greater infrastructure spending. The technology sector also advanced, although oil's decline sent energy-related equities lower, with the sector down 0.4%. The Dow extended its advance up to 19,180, where it stands ahead of the weekly opening. From a technical point of view, the daily chart shows that the benchmark remains far above a sharply bullish 20 SMA while the RSI indicator heads north around 79, supporting some additional gains, despite the Momentum indicator diverges lower. Shorter term, and according to the 4 hours chart, the risk remains towards the upside, as a modestly bullish 20 SMA below the current level keeps driving the index higher, while the RSI indicator resumed its advance, standing now at 80.

Support levels: 19,130 19,085 19,030

Resistance levels: 19,220 19,265 19,310

FTSE 100

The FTSE 100 closed at 6,840.75 after advancing 0.17% on Friday, limited by the decline in oil prices and thin volumes due to a US holiday. A flat reading in the UK Q3 GDP revision resulted in a mute reaction in the benchmark, which anyway posted gains for a third consecutive week. Mining related equities closed mixed, as iron ore and cooper edged higher, but gold plunged, with Glencore ending the day down by 1.84% and Anglo American shedding 1.48%, but Randgold Resources adding 0.70% and Rio Tinto 0.32%. Royal Dutch Shell fell 0.31% as oil prices retreated sharply. Daily basis, the benchmark has been developing around a modestly bullish 100 DMA, unable to clearly break above it, while the 20 DMA has crossed below the largest, but was unable to follow-through. Technical indicators in the same time frame hover within neutral territory, reflecting the absence of a clear trend. In the 4 hours chart, the index is above a bullish 20 SMA, but technical indicators lack directional strength within neutral territory, supporting a neutral-to-bullish outcome for the upcoming days.

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

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

DAX

European equities closed modestly higher on Friday, trading within tight ranges amid a US holiday that kept volumes low. The German DAX added 10 points, and settled at 10,699.27, roughly 5 points higher on the week. During the last day of the week, a retreat in the energy sector curved gains achieved by pharmaceuticals, with Merck up 1.41% and Fresenius Medical care adding 0.98%. Banks remained under pressure with Commerzbank shedding 1.84% and Deutsche Bank closing 0.38% lower. The benchmark has extended its consolidative phase for one more week, technically neutral, but not far from the year's high, which suggests that chances of a steeper decline are limited Daily basis, the index has been steadily finding buying interest around 10,600, but 10,830, October high, have rejected advances. Technical indicators in the mentioned time frame fail to provide clear directional signs, but remain within positive territory, while the 20 SDMA stands flat around the base of the range. In the 4 hours chart, the price is stuck around a flat 20 SMA, while technical indicators head nowhere around their mid-lines, giving no clues on what's next for the index.

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

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

Nikkei

The Nikkei 225 added 47 points or 0.26% on Friday, ending the week at 18,381.22, after posting a fresh 10-month high, underpinned by yen's weakness. Export oriented equities topped winners' list, with Casio Computer up 7.11%, followed by Mitsubishi Motors that added 5.96% and Panasonic which closed 3.99% higher. The index pulled back modestly on profit taking, but held near the mentioned close, and the daily chart shows that technical indicators have turned flat within overbought levels, while the index remains well above bullish moving averages, all of which maintains the risk towards the upside. In the 4 hours chart, Friday's intraday retracement met buying interest around a strongly bullish 20 SMA, currently at 18,307, while technical indicators have resumed their advances within positive territory after a limited downward move, in line with the longer term perspective.

Support levels: 18,342 18,370 18,270

Resistance levels: 18,452 18,496 18,560

Gold

Spot gold fell to its lowest since February 8th last Friday, trading as low as $1,170.90 a troy ounce before recovering some ground and settling at 1,183.93 at the end of the day. The selling spiral triggered by Donald Trump's victory in the US extended for a third consecutive week, fueled by increasing odds for a rate hike in the US next December. Daily basis, the decline seems a bit overstretched, although technical indicators maintain their bearish tone within extreme oversold readings, whilst the 20 SMA has extended its slide, currently standing around 1,237.00, with no signs suggesting that the bright metal has reached an interim bottom. In the 4 hours chart, the risk is also towards the downside, as the price develops below a bearish 20 SMA, currently at 1,193.15, while technical indicators lack directional strength, but remain well below their mid-lines.

Support levels: 1,178.60 1,170.90 1,162.10

Resistance levels: 1,193.15 1,202.90 1,210.60

WTI Crude Oil

Crude oil prices plunged on Friday, with West Texas Intermediate futures falling down to $45.87 a barrel, to close the week a few cents above this last. The commodity was hit my headlines announcing that Saudi Arabia will not attend talks with non-OPEC producers this Monday, as it wants to focus on having consensus within the organization first. The OPEC is scheduled to meet next November 30th and hopes that it will finish a deal by then have diluted, with the market getting ready for a disappointment and further oil slides. From a technical point of view, the daily chart shows that WTI erased all of its weekly gains and fell further, with the price breaking through its 100 and 200 DMAs, but holding above a flat 20 DMA at 45.70, the immediate support. In the same chart, technical indicators have turned sharply lower, with the RSI indicator having already entered bearish territory, heading south around 45. In the 4 hours chart, technical indicators maintain their sharp bearish slopes, despite being in oversold territory, supporting some additional declines on a break below the mentioned support.

Support levels: 45.70 45.10 44.60

Resistance levels: 46.50 47.10 47.80