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Tuesday, December 27th
Today the EUR/USD pair breaks its 4-day winning streak and turns lower amid tightened trading activity on the market. Moreover, ongoing concerns around Italian banks which include the world’s oldest bank Monte Dei Paschi, are weighing moods around the common currency. However, the major currency pair has managed to rebound from its overnight lows posted at 1.0432 and now is trading around mid-point of 1.04 level as minor correction seen around the US dollar is lending support to the EUR/USD pair. Today the major will continue to track sentiments around the US dollar amid post-Christmas low trading volumes and minimal volatility across the market.
Seems that the dollar/yen pair is consolidating part of its today’s gains as the dollar turns slightly lower against basket of its major peers. This morning the pair refreshed its weekly highs at 117.46 spot on the back of upbeat sentiments around the dollar and poor data from Japanese economy. However, apparently US bulls have taken a breather allowing the pair to step down to the region of 117.30. Today the major will keep its positive mood in wake of insufficient Japanese reports and better tone around the US dollar while US CB Consumer Confidence will also be able to set up pair’s short-term direction during the NA session.
The GBP/USD pair continues to drive its recovery from session’s lows marked in the region of 1.2260. Another wave of offers came across the pair this morning as upbeat sentiments around the greenback seen during Asia provided pair’s bears with support. However, the pair managed to rebound from this day lows as the US dollar has lost its upside traction across the board allowing the major to retake the region of 1.2280. Moreover, in mid-term perspective the pound will remain pressured, as concerns around hard “Brexit” that will start in 2017, are negatively influencing the UK currency. In the day ahead, the pair will continue to float driven by US dollar’s price dynamics as UK markets are closed due to Christmas celebrations.
Seems that the Aussie has regained a smile against its American counterpart resuming its recovery from 7-week lows witnessed on Friday. Broad greenback’s correction against its major peers and higher copper prices seen during the last few hours have allowed the pair to pick up some northern traction. On Tuesday sentiment around the dollar will remain the sole driver for the pair's movement amid quiet trading due to a holiday in many countries including Australia. However, the release of CB Consumer Confidence might provide some trading opportunities for short-term traders.
The main events of the day:
US CB Consumer Confidence – 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0406 R. 1.0492
USDJPY S. 116.91 R. 117.79
GBPUSD S. 1.2200 R. 1.2338
USDCHF S. 1.0223 R. 1.0299
AUDUSD S. 0.7119 R. 0.7255
NZDUSD S. 0.6832 R. 0.6934
USDCAD S. 1.3444 R. 1.3600
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