Forex: Pound revived and rose across the board

Cable was the best performer between majors on Tuesday. The pair rose across the board after falling sharply in the last three days. Stocks fell in Europe and the U.S. but rose in Asia. A year after the Dow Jones suffered the biggest point decline in history; markets fell at a moderate pace in Wall Street, following a surprise decline in consumer confidence. The stock index closed lower on five out of the past six sessions.

Cable revives :GPB/USD rose for the first time after four days with losses. The pair posted an intra-day high at 1.5989 and failed to get back above 1.6000 but managed to hold on top of 1.5910. Against the Yen, Cable recovered after falling to a 4-month low on Monday. GPB/JPY rose from 142.50 to 143.90; the pair is facing a strong resistance at 144.00. To the Euro, the Pound posted interesting gains. EUR/GBP continued to pull back from 5-month high and fell to 0.9100.Despite rising across the board, Cable still holds below key levels, suggesting that it could start falling again in the next sessions.

Dollar mixed:With the exception of the Pound, Greenback rose across the board. Dollar appreciated constantly through the Asian and European session but pull back, losing part of the gains during the American. EUR/USD closed below 1.4600 for the first time since mid September. The pair bottomed at 1.4525 posting a fresh 2-week low. The Yen lost ground on Tuesday across the board. USD/JPY rose above 90.00 to 90.36. If Greenback can not break the resistance zone at 90.35 in the next hours, the pair could regain the downside.

EUR/USD Current Price: 1.4588

EUR/USD Current Price: 1.4588. Slowly regaining the upside, pair remains capped under the 38.2% retracement of the last daily up leg 1.4190/1.4842, around 1.4600. with hourly charts slightly bullish, pair needs to clearly confirm above that level to extend the upside rally, thus next strong resistance area came around 1.4650; if the last gives up, pair could regain previous day bullish strength.

Under 1.4550 static support zone, next support came at 1.4515 area, 61.8% of the mentioned rally. Nikkei 225 opened up 0.1% and quickly turned to negative territory, limiting pair rises. “Price broke above 20 SMA yet it still has a bearish slope, while in bigger time frames pair is well under the indicator, yet with no clear bias for next hours,” said Valeria Bednarik, collaborator at FXstreet.com.

JPY crosses slightly higher in pre-Tokyo trade

EUR/USD is a little higher and USD/JPY is unchanged and dealers say that interest so far is muted. As stated earlier, there are said to be a lot of trailing stops above 132 in EUR/JPY which might attract attention. I'll hand over to Sam to guide you through the next few hours of market activity.

Forex: Dollar mixed pointing for more gains

Dollar closed he day mixed against major rivals, mostly gaining ground on fears about economic recovery. With Wall Street down, local shares are expected to fall also, thus limited mostly a consolidative day; watch Nikkei 225 key 10.000 points support level, as under that, risk aversion could gain strength and be reflected across the board. Euro started the day under 1.4600 level, 38.2% retracement of 1.4190/1.4842, with the 50% of that rally around 1.4510, next key support level to watch.

Under that zone, pair could reach key 1.4450 static area, also close to the 61.8% of the mentioned rally. GBP managed to close the day to the upside, yet movement remains mostly corrective after almost 700 pips straight fall in 4 days. As long as under 1.6060, bearish trend remain intact; corrections could even extend to the 1.6110 area, but price should retreat strongly from that zone, to consider bearish trend still healthy.

EUR/USD Current Price: 1.4588

EUR/USD Current Price: 1.4588. Slowly regaining the upside, pair remains capped under the 38.2% retracement of the last daily up leg 1.4190/1.4842, around 1.4600. with hourly charts slightly bullish, pair needs to clearly confirm above that level to extend the upside rally, thus next strong resistance area came around 1.4650; if the last gives up, pair could regain previous day bullish strength.

Under 1.4550 static support zone, next support came at 1.4515 area, 61.8% of the mentioned rally. Nikkei 225 opened up 0.1% and quickly turned to negative territory, limiting pair rises. “Price broke above 20 SMA yet it still has a bearish slope, while in bigger time frames pair is well under the indicator, yet with no clear bias for next hours,” said Valeria Bednarik, collaborator at FXstreet.com.
Support levels: 1.4555 1.4510 1.4480. Resistance levels: 1.4610 1.4645 1.4680