EUR/USD and GBP/USD area trading near major support levels and USD/JPY is heading into a crucial resistance area near 111.30.
The Euro traded nicely this past week and it recently moved above the 1.1950 level against the US Dollar. The EUR/USD pair traded as high as 1.1960 and later corrected lower.
The pair traded near the 61.8% Fib retracement level of the last wave from the 1.1835 low to 1.1960 high. However, the downside move was protected by a major bullish trend line with support at 1.1880 on the hourly chart.
As long as the pair is above the trend line support and 1.1880, it might move higher in the near term.
Today in the Euro Zone, the Spanish Retail Sales report for Oct 2017 was released by the National Institute of Statistics. The forecast was slated for a rise of 2% in the sales in Oct 2017 compared with the same month a year ago.
The actual result was well below the market forecast as there was a decline of 0.1% in sales. This was also disappointing when compared with the last increase of 2.1%.
The report was negative, but EUR/USD managed to stay above the 1.1880 support area.
The pair is currently trading near two connecting bullish trend lines with support near 1.3310 on the hourly chart. These trend lines hold a lot of importance for the next move and if there is a break below 1.3300, the pair could trade back towards 1.3250.
On the upside, the pair faces resistance near 1.3340 and 1.3380.
The US Dollar remains in a downtrend and it recently moved below the 111.80 and 111.50 support levels against the Japanese Yen. The USD/JPY pair traded as low as 110.81 recently and is currently correcting higher.
However, the pair is facing a key bearish trend line with resistance at 111.30 on the hourly chart. The trend line resistance near 111.30 is important since it is near the 100 hourly simple moving average.
A break above 111.30 is required for USD/JPY to recover in the near term.
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