EUR/USD hit fresh new eight-week high

On Wednesday session the single currency was trading higher against the US dollar without being affected by the positive US data on labor market and factories. Federal Reserve's meeting minutes additionally stirred the market spirit. 

According to Fed’s minutes, the members of the board left the door open for the next rate hike. It seems that some of the members need more positive data and others support the opinion that the time has come. However, we must consider this meeting as a warning sign for upcoming rate increase, as inflation data is getting closer to Fed’s target. 

As a consequence, the EUR/USD pair was trading elevated with around 0.45%, to $1.1366 and hit a new eight-week high. 

USD/JPY

On Wednesday for first time since June the US dollar dropped below the psychological ¥100 level. The current weakness of the US economy and the strong bearish trend in USD/JPY set selling pressure over the pair. The fact that USD/JPY still is standing around 100 and closed at its lowest daily level indicates that the direction is in favor of the Asian currency. 

Yesterday USD/JPY tried to push higher, reached an intraday high at ¥101.15, but later on plummeted down and closed lower at ¥100.24. During today’s early trading hours hit ¥99.63. 

The expectations are bearish for testing the area  99.50 - 98.80. The nearest resistance is seen at ¥101.15. A clear break above it could take price to neutral zone for testing ¥100.65 or higher, but yet at this phase bearish scenario is preferable.

GBP/USD

During yesterday’s trading the GBP/USD pair continued its momentum down and formed a bottom at $1.2865. Today is expected higher volatility on the pair as later on the day will be released July’s CPI data. In the early trading hours no significant change was marked and the pair is hovering around $1.2900 area.

The bias remains bearish for re-testing $1.2790. First resistance remains around $1.2950. A clear break above it could take price to neutral trading zone testing 1.3000 or higher, but we would better remain in the camp of bears in this phase. On the downside, a clear break and daily close below 1.2790 could lead to further bearish pressure for testing $ 1.2700 - $1.2650.

EUR/USD

EUR/USD was quite hesitant yesterday. The macro agenda  had nothing to offer in Europe, so the focus was on the US data release. The Empire State Manufacturing Index disappointed with weaker than expected numbers – 4.21 points in August, comparing with the expected 1.99 points. 

The single currency took the advantage of the US dollar weakness and was trading slightly higher, moving towards the two week high, marked on August 12 at $1.224. Anyway coudn’t reach it. The session opened at $1.1167 and closed only 15 pips higher.

Currently the bias remains neutral but with more likely bearish scenario. The intraday support is located at $1.1135, matching with the 55-day EMA. A clear break below that area could trigger further pressure over bears  to test $1.1050. On the upside, the trend line resistance and $1.1250 remain key resistance levels.

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USD/CHF possibly uptrending

The NFP release last week pushed higher the US dollar and this fuelled the USD/CHF pair upwards. The pair conquered the support lying at 0.9848, matching with the 38.2% Fibo, drawn from May’s 2015 low to November’s 2015 high. Now this level turned to be resistance and the CHF is somehow pressured and is marking lower highs. 

Meanwhile we are facing higher lows as well. May’s 2016 low is uptrending with June’s 2015 low and crossed the 61.8% Fico retracement. So in the long-term USD is fascinating and is showing strength above 0.9648.

In case of breaking below 50.00% Fibo retracement at  0.9700 most probably we must look around for touching the support line at 0.9630. Going below this level might drag the pair below 0.9500 area.

A rolling stone

The New Zealand dollar showed excellent performance during today’s trading against the greenback, ticked 1.3% higher during the London session and reached an intraday high at $0.7264, letting go all resistance levels. The main engine that powered today the NZD/USD pair was the expected meeting of RBNZ and the anticipation of rate cut to new historical low of 2%. 

RSI was showing overbought market in the early afternoon hours, but currently is indicating slight bearish trend. On the other hand momentum is welcoming bulls back. 

Major resistance remains 0.7030, even bulls conquered it for shortly. 

Still bulls are on run as long as hold above the 50-day moving average. Bears could kill with kindness the picture only if the pair near the support line at 0.7190.