A continued advance in US yields, and the dollar index trading pass 102.00

EUR/USD

A continued advance in US yields, and the dollar index trading pass 102.00 for the first time in fourteen years, pushed the EUR/USD pair down to a fresh yearly low of 1.0517 this Thursday. The pair, however, managed to bounce modestly during the London session, helped by the release of German data, which was generally positive. German's GDP in Q3 came in at 0.2%, in line with markets' expectations, while the IFO survey for November printed 110.4, slightly below October's reading of 110.5 in. The assessment of the current situation improved according to the survey, up to 115.6 from previous 115.1, while expectations declined to 105.5 from a downwardly revised 105.9. Finally, the GFK Consumer confidence survey printed 9.8 for December, above previous 9.7.

With the US on holidays, the pair has made little progress during the past session, settling around the 1.0550 level at the end of the day. US stocks are due to an early close on Friday, which will likely keep volumes lows also on Friday. Daily basis, the pair has posted a lower low while closing at the lower end of Wednesday's range, indicating that the bearish trend remains firm in place. Technical indicators in the mentioned time frame have been consolidating within oversold for most of this week, suggesting that the pair may correct higher, but unless the pair recovers above 1.0840, the advance will be understood as corrective. In the 4 hours chart, the price has been developing below a bearish 20 SMA, while technical indicators have turned lower within bearish territory after bounding modestly, supporting further slides on a break below 1.0505, December 2015 low and the immediate support.

Support levels: 1.0505 1.0460 1.0420

Resistance levels: 1.0590 1.0640 1.0675

USD/JPY

Japanese yen's sell-off continued on Thursday, sending the USD/JPY pair to 113.53, the highest in eight months, undermined by rising yields and tepid Japanese data released during the past Asian session. The Japanese Nikkei Manufacturing PMI missed expectations, with the preliminary estimate for November printing 51.1, below previous 51.4 and the expected 51.7, although the Japanese leading economic index for September, printed 100.3, in line with market's expectations. The pair held on to gains for most of the day, consolidating near the high for most of the European and American sessions. Despite Wall Street was closed, futures extended their rally to fresh record highs, further supporting the advance in the pair. Japan will release its National and Tokyo inflation figures during the upcoming session, with inflation expected to remain subdued. From a technical point of view, the short term picture presents a bullish bias, as the price keeps advancing beyond a sharply bullish 100 SMA, currently around 111.60, while technical indicators are neutral-to-bullish within positive territory. In the 4 hours chart, technical indicators have turned modestly higher within overbought readings, lacking upward momentum, but with no signs of a bearish upcoming move. The pair has the 23.6% retracement of the 2011/15 rally at 113.95, and a break above it will likely favor a continued advance, with the market then thinking on the 120.00 mark.

Support levels: 112.30 111.90 111.45

Resistance levels: 112.95 113.40 113.85

GBP/USD

Brexit concerns are no longer the dominating motor for the Sterling, although political woes worldwide remain at center stage. The GBP/USD pair has been confined to a tight range this Thursday, posting some modest gains but still trading within Monday's range, closing the day around 1.2460. The UK released the BBA monthly report this Thursday, which showed that consumer credit grew at its fastest rate since November 2006, reflecting strong retail sales growth, with mortgage approvals up to 40.851K from previous 38.690K. Attention now shifts towards the release of the preliminary GDP for the third quarter this Friday, with the economy expected to have grew 0.5% in the three months to September. The short term picture for the pair is neutral, as in the 4 hours chart, the price is struggling around a flat 200 EMA, while technical indicators are hovering around their mid-lines with no certain directional strength. In the same chart, the 20 SMA heads modestly higher, although the price has been drifting below it for most of the past two days. The pair seems to have found a comfort zone between 1.2300 and 1.2520, and it will take a break of any of such extremes to see the pair finding some directional strength.

Support levels: 1.2410 1.2370 1.2320

Resistance levels: 1.2475 1.2520 1.2560

AUD/USD

The Australian dollar recovered the ground lost against the greenback on Wednesday, settling around the 0.7400 level against the American dollar in a quiet US afternoon. The AUD/USD pair has bounced from a key long term support this week, the 50% retracement of this year's early rally, around 0.7330, and seems to have now entered a consolidative phase, with the downward potential somehow easing. Nevertheless, this week's recovery stalled right below the next Fibonacci level, the 38.2% retracement of the same rally at 0.7450, and steeper gains are unlikely unless the price stabilizes above it. In the meantime, and for the short term, the pair presents a modest bullish tone in the 1 hour chart, with the price developing above a bullish 20 SMA and technical indicators heading north within positive territory. In the 4 hours chart, the price has been hovering around an also bullish 20 SMA, ending the day a handful of pips above it, although technical indicators lack directional strength, stuck around their mid-lines.

Support levels: 0.7370 0.7330 0.7290

Resistance levels: 0.7420 0.7450 0.7500

Dow Jones

Wall Street remained closed this Thursday due to the US Thanksgiving holiday, but that didn't prevent indexes from extending their rallies to fresh record highs in electronic trading. US markets will be opened this Friday, although they are due to an early close. The DJIA enters the Asian session quoting around 19,141, after closing at 19,083 on Wednesday, whilst the S&P stands at 2,208 from previous close of 2,204. Technically, the daily chart shows that the Momentum indicator diverges lower, but remains within overbought levels, while the RSI indicator keeps heading higher, despite being at 78. In the same chart, the 20 SMA maintains its sharp bullish slope below the current level, in line with further gains. Shorter term, and according to the 4 hours chart, the Momentum indicator has ticked modestly higher from its 100 level, while the RSI heads also north, but around 78, while the 20 SMA extended its advance below the current level, now offering a dynamic support around 19,030, all of which supports a bullish extension for this Friday.

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

Resistance levels: 19,175 19,220 19,265

FTSE 100

The FTSE 100 added 11 points, to close at 6,829.20, with gains limited by the poor performance of gold prices. Further weighing on the Footsie was Pound's resilience, as the UK currency held above the 1.2400 mark against its American rival. Direct Line Insurance Group was the best performer up by 2.84%, after broker Morgan Stanley upgraded the stock to 'overweight' from 'equalweight' and lifted the price target to 465p from 414p. Easy Jet, on the other hand, topped losers' list, down 2.29%. From a technical point of view, the index has made little progress, given that it remains below its 20 and 100 DMAs, although it also posted a higher low daily basis, while the Momentum indicator heads north above its mid-line and the RSI indicator consolidates around 50, all of which limits chances of a downward move. In the 4 hours chart, the 20 SMA remains below the current level, but is losing its upward strength, while technical indicators keep hovering within neutral territory with no clear directional strength.

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

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

DAX

European equities edged modestly higher this Thursday, with the German DAX ending the day at 10,689.26, up by 26 points. The German benchmark found support in positive local data, although figures failed to surprise, limiting chances of a stronger rally. Nevertheless, business confidence held near October's highs, with the figures showing that investors are still wary about the future of the region. Among the DAX, Volkswagen was the best performer, up by 1.35%, followed by SAP, a technology company that added 1.32%. Banks closed in the red, with Commerzbank down 1.26% and Deutsche Bank shedding 0.16%. The index has posted a modest recovery in after-hours trading, but remains within its latest range, holding above a flat 20 DMA around 10,600 and with technical indicators heading north within positive territory, indicating that further gains are likely, although on a firmer advance beyond 10,800. In the 4 hours chart, the neutral stance persists, with the index having stalled its recovery around a flat 20 SMA and technical indicators heading nowhere around their mid-lines.

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

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

Nikkei

The Japanese Nikkei advanced 170 points or 0.94% to settle at 18,333.41, up for the sixth consecutive day, as the sell-off in the JPY extended to levels last seen late March this year. Export oriented equities were the most benefited, with Kobe Steel leading the way higher, closing up 9.86%. The automaker sector also posted strong gains, with Mazda up 5.04% and Toyota adding 4.79%. Despite Wall Street was off, the benchmark extended its advance in electronic trading, and is poised to open the day at above 18,400. From a technical point of view, the daily chart shows that the index remains far above a sharply bullish 20 SMA, while technical indicators have barely lost upward steam within extreme overbought territory, indicating that the risk remains towards the upside. In the 4 hours chart, the RSI indicator has turned flat around 70, the Momentum indicator remains neutral above its 100 line, while a sharply bullish 20 SMA keeps leading the way higher, currently at 18,246.

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

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

Gold

Spot gold extended its decline to $1,180.36 a troy ounce, level last seen early February this year, bouncing modestly to settle around 1,184.00 at the end of the day. Prospects of a US rate hike next December have taken their toll on the bright metal, while speculation that upcoming US president, Donald Trump, will focus on measures that will result in a rapid rise in US inflation, hurt the safe-haven, non-yielding asset even further. From a technical point of view, and according to the daily chart, the metal is oversold, given that the Momentum indicator hovers at levels last seen in November last year when it traded around 1,050, and the RSI indicator keeps heading south around 23. Still, there are no signs that spot has found an interim bottom. In the shorter term, and according to the 4 hours chart, the commodity has been consolidating near the mentioned low for most of the last two sessions, well below a strongly bearish 20 SMA, and with technical indicators heading south well below their mid-lines, in line with further declines on a break below the mentioned daily low.

Support levels: 1,180.35 1,174.50 1,162.40

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

WTI Crude Oil

West Texas Intermediate crude oil futures closed the day flat around $48.00, with the commodity confined to a tight range amid reduced daily volumes and increasingly cautious mood among investors, ahead of the OPEC meeting scheduled for next November 30th. From a technical point of view, WTI has closed with a doji for a second consecutive day, reflecting the ongoing uncertainty over a possible production cap. Nevertheless and according to the mentioned time frame, the risk remains towards the upside, as the price continues developing well above its moving averages, whilst technical indicators have turned flat within positive territory, after partially correcting from overbought readings. In the shorter term, and according to the 4 hours chart, oil presents a neutral stance, with the price hovering between its 20 and 200 SMAs, the Momentum indicator flat right below the 100 level, while the RSI is also flat, but around 59, limiting chances of a downward move.

Support levels: 47.70 47.10 46.50

Resistance levels: 48.65 49.20 49.95