THE EURO PRICE RESTORING POSITIONS AGAINST THE USD
The common currency is growing today against the US dollar on the background of a weakening greenback and the recent publication of the consumer price index in the Eurozone. The inflation figure for November grew by 1.5% which was in line with forecasts but is still below the target inflation level at 2.0%. Investors are in no hurry to build up positions ahead of the release of important statistics on the housing market in the US which is key for the development of the nation’s economy. We should also note that on Friday the report on national GDP growth in the US will be released and that may trigger growth in volatility for the long weekend ahead. At the same time the, pace of economic expansion in the US may significantly influence the views of the FOMC concerning the possible rate increase in March. At the center of attention also remain the talks on tax cuts in the US.
The aussie price is restoring positions after the recent downward correction. Some support in the morning came from the new motor vehicle sales in Australia that have grown by 0.1% in November. Some growth of volatility is possible tomorrow after the release of the monetary policy meeting minutes of the Reserve Bank of Australia at 00:30 GMT.
The USD/JPY was not able to continue the rising impulse due to stronger than anticipated news on the trade balance in Japan the surplus of which was 0.36 trillion yen in November compared to 0.27 trillion yen forecasted. Support for the yen as a defensive asset may increase ahead of the holiday season.
The EUR/USD is confidently growing and may soon reach the important resistance range of 1.1800-1.1825. In case of the price overcoming this range, we may see further price increases up to 1.1925 and 1.2000. Currently the RSI on the 15-minute chart is near the overbought zone, which points to the increased probability of the price rollback within the correction.
The AUD/USD quotes are trying to restore the upward impulse after the recent descending correction. The price fixing above 0.7635 may be a strong basis for continued growth with the nearest targets at 0.7740 and 0.7800. On the other hand, we do not exclude the price breaking through 0.7635 which may become a trigger for a fall to 0.7600 and 0.7565.
The USD/JPY is consolidating within the 112.0-113.00 range after it has broken through the important inclined support line. In case of decline and breaking the important 111.70 mark, we may see the price decline to 110.30 and 109.60. The RSI on the 15-minute chart is close to the oversold zone that points to a possible price rebound to 113.00 and above it.