Demand for the risk drops.
Asian and European trading sessions:Euro: The EUR/USD pair started Wednesday with a decrease to the $1,3300 mark. The euro was pressured by the announcement of Moody’s Investors Service that the credit rating of Spain would be possibly reduced. Minimums were reached at the $1.3284 mark.
US Dollar: Morning trading saw the stabilization of the US dollar. Expectations for the release of the positive US fundamentals later during the day supported the greenback. The speculations regarding the possible increase of the interest rate at the next FOMC meeting reinforced.
The released consumer price index turned out to be at the forecasted level of 1.1%.
British Pound: The sterling also decreased and the GBP/USD pair dropped to $1,5720 level. After the release of the UK employment data, the GBP/USD dropped to $1.5528. The jobless claims change decreased for 1.2K against the expected decrease for 3.0K.
Japanese Yen: The USD/JPY pair reached maximums at Y84.50 and stepped back to Y83.60 levels.
Swiss Frank: Today Swiss frank reached maximums against the euro due to the European financial crises.
Oil: Oil prices showed decrease to the level of $87.74 per barrel after the FRS commentaries regarding the slow-down of the US economy rehabilitation.
American trading sessions:
US Dollar: The demand for the save-heaven assets grew, as the uncertainty around the European countries increased.
The release of the strong US fundamentals supported the greenback. The Empire manufacturing index for December grew and reached 10.57 level against the forecasted level of 5.00. US industrial production increased as well and hit the 0.4% level against the expected 0.3%.
Technical analysis for 16/12
EURUSD
The pair has broken 1.33143 and aiming to Fibonacci retracement 38.2% at 1.31136.
Resistance: 1.33143, 1.34882, 1.35985
Support: 1.31674, 1.30277, 1.28630
GBPUSD
The pair wasn’t able to close above 1.58543. The pair declining to support level 1.54842.
Resistance: 1.56722, 1.58543, 1.60322
Support: 1.54842, 1.53482, 1.52063
USDCHF
The pair has declined to 0.96480. Lower is strong support at 0.95510.
Resistance: 0.96480, 0.97130, 0.97892
Support: 0.95510, 0.94661, 93831
USDJPY
The pair has risen to 83.933 and trying to reach 84.866.
Resistance: 84.866, 85.960, 86.861
Support: 83.933, 83.065, 82.219
AUDUSD
The pair has declined to support 0.98436. If this level is broken the pair may decline to 0.97423.
Resistance: 0.99207, 1.00067, 1.00907
Support: 0.98436, 0.97424, 0.96464