EUR/USD is slowly moving lower from the 1.1860 high, GBP/USD remains in an uptrend and USD/JPY is facing a major resistance near 112.60.
The Euro traded above the 1.1850 level against the US Dollar, but failed to hold gains and started a downside move from the 1.1860 high. The EUR/USD pair has moved below the 50% Fib retracement level of the last wave from the 1.1636 low to 1.1860 high.
It seems like there is a major declining channel forming with resistance at 1.1765 on the hourly chart. The channel resistance at 1.1765-70 is positioned along with the 100 hourly simple moving average to act as a barrier for an upside move.
On the downside, a break below the 61.8% Fib retracement level of the last wave from the 1.1636 low to 1.1860 high at 1.1721 would open the doors for more declines in the near term.
The British Pound started an upside move after consolidating for some time around the 1.3100 handle against the US Dollar. The GBPUSD pair is slowly moving higher and recently broke the 1.3180 and 1.3200 resistance levels.
The pair seems to be following an ascending channel forming with current support at 1.3235 on the hourly chart. On the downside, the channel support also coincides with the 50% Fib retracement level of the last leg from the 1.3168 low to 1.3279 high.
Therefore, the pair remains well supported on the downside near 1.3235-30 for more gains in the near term.
Today in the UK, the Net Borrowing for Oct 2017 was released by the National Statistics. The forecast was slated for the Net Borrowing to be £6.600B.
The US Dollar made a nice downside move from the 113.80 resistance against the Japanese Yen. The USD/JPY pair traded below the 112.80 and 112.50 support levels and a low was formed at 111.87 from where a recovery was initiated.
It has moved above the 23.6% Fib retracement level of the last decline from the 113.32 high to 111.87 low, but the USD/JPY pair is facing a key bearish trend line with resistance at 112.60 on the hourly chart.
A successful close above 112.60 and the 100 hourly SMA is required for buyers to gain momentum towards 113.00 in the near term.
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