Sample Category Title

Apparently, despite various rumors, Italy hasn't submitted a revised Draft Budget Plan yet. Prime Minister Giuseppe Conte was quoted by la Repubblica daily that "if I have the chance to reduce the economic impact of some measures I'm here." He added, "I'm the one who is entitled to speak with the European Commission ... and I never halted discussions. Right now if I can recover some funds, tweak the final figure, change a few little things, it doesn't mean I'm backtracking."

European Budget Commissioner Guenther Oettinger repeated the urge for Italy to comply with EU rules. He said in a German radio interview that "We hope that a draft will come today that corresponds to the criteria for all euro countries". But he sounded tough and indicated that even bring down deficit target from the current plan's 2.4% to 2.2% of GDP, that "would be against all the commitments".

EUR/USD failed to recover above 1.1420 and declined recently. USD/JPY is currently correcting higher, but it could face resistance near the 113.20 level.

Important Takeaways for EUR/USD and USD/JPY

• The Euro is currently under pressure below the 1.1350 support level.
• There was a break below a key bullish trend line with support at 1.1345 on the hourly chart of EUR/USD.
• USD/JPY traded below a major bullish trend line with support at 113.45 on the hourly chart.
• The pair is currently recovering, but it could struggle near 113.20 or 113.40.

EUR/USD Technical Analysis

The Euro recovered nicely from the 1.1320 support area earlier this week against the US Dollar. The EUR/USD pair traded above the 1.1350 level, but the pair struggled to stay above the 1.1400 and 1.1420 resistance levels.

The pair formed a high at 1.1418 on FXOpen and later started a sharp downside move. Sellers pushed the pair below the 1.1350 support level and the 50 hourly simple moving average.

During the decline, the pair broke the 61.8% Fib retracement level of the last wave from the 1.1319 low to 1.1418 high. It opened the doors for more losses and the pair traded below a break below a key bullish trend line with support at 1.1345 on the hourly chart.

The pair even tested the last swing low at 1.1319. The current price action is very bearish and it seems like the pair could continue to move down below 1.1320.

The next major support is near the 1.1295 level, which is the 1.236 Fib extension level of the last wave from the 1.1319 low to 1.1418 high. If there are more losses, the pair may slide back towards the 1.1250 support level.

On the upside, an initial resistance is near the 1.1350 level, which was a support earlier and it could now prevent upsides in the near term along with the 100 hourly SMA.

USD/JPY Technical Analysis

The US Dollar started a major downside move from the 114.00 swing high against the Japanese Yen. The USD/JPY pair traded below the 113.80 and 113.50 support levels to enter a bearish zone.

An intermediate support was formed at 113.20 and later the pair bounced back. However, it failed near the 113.80 level and declined once again. The recent decline was such that the pair broke the 113.20 support level and the 50 hourly simple moving average.

Moreover, there was a break below a major bullish trend line with support at 113.45 on the hourly chart. The pair declined towards the 112.50 level and traded as low as 112.57.

The pair is currently correcting higher above 112.80 and the 23.6% Fib retracement level of the recent decline from the 113.70 high to 112.57 low. However, there is a strong resistance formed near the 113.20 level.

The 113.20 level was a support level earlier and now it could act as a resistance along with the 50% Fib retracement level of the recent decline from the 113.70 high to 112.57 low.

Therefore, if USD/JPY corrects higher in the short term, it is likely to face a lot of offers near the 113.20 and 113.40 levels. On the downside, an initial support is at 112.80, below which the pair could decline towards the 112.50 level.

Daily Pivots: (S1) 142.59; (P) 143.67; (R1) 144.51; More...

GBP/JPY's decline from 149.48 extends to low as 142.83 so far. Intraday bias remains on the downside and break of 142.76 will pave the way to 139.29/47 key support zone. On the upside, break of 145.51 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain cautiously bearish even in case of recovery.

In the bigger picture, as long as 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) holds, up trend from 122.36 (2016 low) would still extend beyond 156.69 high. However, decisive break of 139.29/47 will suggest that such up trend is completed and turn outlook bearish. In that case, next target is 61.8% retracement at 135.43.

For the 24 hours to 23:00 GMT, the EUR declined 0.11% against the USD and closed at 1.1343.

In economic news, the Euro-zone's producer price index (PPI) advanced 4.9% on a yearly basis in October, beating market expectations for a rise of 4.5%. The PPI had recorded a revised gain of 4.6% in the prior month.

In the Asian session, at GMT0400, the pair is trading at 1.1333, with the EUR trading 0.09% lower against the USD from yesterday's close.

The pair is expected to find support at 1.1295, and a fall through could take it to the next support level of 1.1257. The pair is expected to find its first resistance at 1.1395, and a rise through could take it to the next resistance level of 1.1457.

Looking ahead, investors would keep an eye on the Markit services PMI for November set to release across the euro bloc followed by Euro-zone's retail sales for October, scheduled to release in a few hours. Later in the day, the US ADP employment change and the Markit services PMI, both for November, will be on investors radar. Additionally, the Federal Reserve's Beige Book and MBA mortgage applications will keep traders on their toes.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

Daily Pivots: (S1) 127.35; (P) 128.19; (R1) 128.78; More....

EUR/JPY's breach of 127.83 minor support suggests that fall from 130.14 might be ready to resume. Intraday bias is turned back to the downside for 126.63 low first. Break there will then resume the whole decline from 133.12 to 124.08/89 support zone. And, even in case of recovery, outlook will stay bearish as long as 130.14 resistance holds.

In the bigger picture, as long as 124.08 key resistance turn supported holds, larger up trend from 109.03 (2016 low) is still in progress. Firm break of 137.49 structural resistance will target 141.04/149.76 resistance zone next. However, decisive break of 124.08 will argue that such rise from 109.03 has completed and turn outlook bearish. In that case, deeper fall would be seen to 61.8% retracement of 109.03 to 137.49 at 119.90.

For the 24 hours to 23:00 GMT, the GBP declined 0.08% against the USD and closed at 1.2716.

On macro front, UK's construction PMI unexpectedly climbed to a 4-month high level of 53.4 in November, cofounding market consensus for a decline to a level of 52.5. In the preceding month, the PMI had recorded a reading of 53.2.

Yesterday, the Bank of England Governor, Mark Carney in his parliament speech, defended the central bank's analysis that a no-deal Brexit would severely impact and cause recession in the economy. Further, he stated that the probability of the worst-case Brexit scenario was low. Meanwhile, he added that food prices could jump as much as 10% if there was a 25% plunge in the British pound due to a no-deal Brexit.

In the Asian session, at GMT0400, the pair is trading at 1.2706, with the GBP trading 0.08% lower against the USD from yesterday's close.

The pair is expected to find support at 1.2630, and a fall through could take it to the next support level of 1.2554. The pair is expected to find its first resistance at 1.2811, and a rise through could take it to the next resistance level of 1.2916.

Moving forward, traders would await UK's Markit services PMI for November, slated to release in a few hours.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD declined 0.76% against the JPY and closed at 112.74.

In the Asian session, at GMT0400, the pair is trading at 112.93, with the USD trading 0.17% higher against the JPY from yesterday's close.

Overnight data showed that Japan's Nikkei services PMI slid to a level of 52.3 in November, compared to a reading of 52.4 in the prior month.

The pair is expected to find support at 112.56, and a fall through could take it to the next support level of 112.18. The pair is expected to find its first resistance at 113.33, and a rise through could take it to the next resistance level of 113.72.

The currency pair is trading in between its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD declined 0.06% against the CHF and closed at 0.9974.

Data indicated that Switzerland's consumer price index (CPI) climbed 0.9% on an annual basis in November, undershooting market expectations for a rise of 1.0%. The CPI had recorded a gain of 1.1% in the previous month.

In the Asian session, at GMT0400, the pair is trading at 0.9990, with the USD trading 0.16% higher against the CHF from yesterday's close.

The pair is expected to find support at 0.9949, and a fall through could take it to the next support level of 0.9908. The pair is expected to find its first resistance at 1.0013, and a rise through could take it to the next resistance level of 1.0036.

With no macroeconomic releases in Switzerland today, investors would look forward to global macroeconomic releases for further directions.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

Daily Pivots: (S1) 0.8891; (P) 0.8919; (R1) 0.8948; More...

Intraday bias in EUR/GBP remains neutral as this point, as it's still cannot sustain above 0.8939 resistance yet. On the upside, firm break of 0.8939 resistance will confirm completion of the fall from 0.9098 and turn outlook bullish for this resistance. On the downside, below 0.8810 will turn bias to the downside for 0.8655 low instead.

In the bigger picture, EUR/GBP is seen as staying in long term range pattern started at 0.9304 (2016 high). Sustained break of 0.8939 resistance will confirm that it's in a medium term rising leg for 0.9098 and above. And for now, in case of another fall, downside will likely be contained by 0.8620/55 support zone to bring rebound.

For the 24 hours to 23:00 GMT, the USD rose 0.47% against the CAD and closed at 1.3261.

In the Asian session, at GMT0400, the pair is trading at 1.3280, with the USD trading 0.14% higher against the CAD from yesterday's close.

The pair is expected to find support at 1.3202, and a fall through could take it to the next support level of 1.3123. The pair is expected to find its first resistance at 1.3321, and a rise through could take it to the next resistance level of 1.3361.

Trading trend in the Loonie today is expected to be determined by the Bank of Canada's interest rate decision, scheduled to release later in the day.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.