Ratings’ reduction pressures the euro.
Asian and European trading sessions:Euro: The EUR/USD started today’s trading with the maximum of $1,3200, as the Government of China confirmed its intentions to support the European Union with debt problems. Therefore, the euro was gaining strength.
But the announcement that Moody’s would probably reduce the Portugal credit rating pressured the euro, and the EUR/USD pair started to loose its previously won positions.
US Dollar: The greenback was weakening as the euro showed some temporary stabilization.
British Pound: The GBP/USD rate showed maximums as well, the pair reached the $1,5560 level during the Asian session. Later on the sterling was weakening following the euro dynamics.
Japanese Yen: The yen consolidated before the end of the year period. The USD/JPY pair traded in the range of Y83,55-Y83,80.
According to the expectations, the Bank of Japan left the principal rate unchanged at the level of 0.10%.
Canadian Dollar: The Canadian dollar was loosing its positions against the greenback. The released Canadian consumer prices indices turned out to be below expectations, which pressured the national currency. And even the release of the Canadian retail sales, which was above forecasts, could not support the Canadian dollar.
Oil: The oil prices showed increase to the level of $89.64 per barrel, as the US economical growth showed positive forecasts.
Gold: Gold rate grew and well and reached the $1,386.70 mark per ounce.
American trading session:
Euro: Threat of Greece debt downgrade by Fitch agency rendered additional pressure to the euro. As a result, the EUR/USD dropped to the $1,3071 minimums.
Technical analysis for 22/12
EURUSD
The pair has reached Fibonacci retracement 38.2% at 1.31136. If the pair stays above 1.31136 the pair will try to rise to 1.33143. If the pair stays below 1.31136 the pair will decline to 1.30277.
Resistance: 1.33143, 1.34882, 1.35985
Support: 1.30277, 1.28630, 1.26897
GBPUSD
The pair has broken 1.54842 and aiming to decline to Fibonacci retracement 23.6% at 1.53482.
Resistance: 1.56722, 1.58543, 1.60322
Support: 1.53482, 1.52063, 1.50594
USDCHF
The pair has broken 0.96480 and aiming to strong support at 0.95510. If 0.95510 is broken the pair may decline to 0.94661 low of 14.10.10.
Resistance: 0.96480, 0.97130, 0.97892
Support: 0.95510, 0.94661, 93831
USDJPY
If the pair stays below 83.933 the pair will decline to 83.065.
Resistance: 83.933, 84.866, 85.960
Support: 83.065, 82.219, 81.399
AUDUSD
The pair nearly touched 1.00067 and rolling back to 0.99207.
Resistance: 1.00067, 1.00907, 1.01744
Support: 0.99207, 0.98436, 0.97424