GREENBACK RESTORES POSITIONS

The EUR/USD price is falling today due to the US dollar appreciating. The increase of yields in American Treasuries is increasing trader interest in the greenback. On the other hand, pressure for the USD is coming from the lower than expected pace of US economic expansion of only 2.6% in the fourth quarter against the 3.0% forecasted. Today, the mood of traders has been influenced by macro statistics, on personal income in the US which increased by 0.4% in December, 0.1% more than forecasted. But on the flipside, personal spending grew by only 0.4% compared to the 0.5% expected.

Tomorrow some volatility growth is possible after the release of the French and Spanish Gross Domestic Product reports. Moreover, the main impact is likely to come from the news on the European economic expansion during the previous quarter. The central event of the week, which may restrain investors from making any active moves will be the NFP labour market report in America that will be published on Friday.

The USD/JPY is consolidating after a confident descending movement of the previous weeks. The course of trading today is likely to be impacted by reports from Japan on household spending and unemployment rate at 23:30 GMT and retail sales at 23:50 GMT.

The aussie price is consolidating today due to the lack of new drivers for any strong price movements. Among the macro statistics, we should pay attention to is the NAB business confidence index in Australia at 00:30 GMT. Volatility is expected to increase for the NZD/USD tonight after the trade balance data release from New Zealand at 21:45 GMT.

EUR/USD

The EUR/USD has broken through the important support level at 1.2400 and fixing below it will support the bears in their intention to pull quotes further down to the nearest target levels at 1.2300 and 1.2200. The RSI on the 15-minute chart approached the oversold zone, which may be the basis for the price to rebound soon to 1.2400 or even higher.

USD/JPY

The USD/JPY is testing the important support level at 108.50 and in case of gaining a foothold under it, we may see the price drop to the next target levels at 108.00 and 107.00. On the other hand, breaking through the resistance at 109.60 may be the completion of the reversal pattern “double bottom” and as a result, the next objectives may be located at 110.30 and 111.00.

AUD/USD

The AUD/USD price has rolled back after an unsuccessful attempt to fix above the 0.8125 resistance line. In case of further descending movement, the closest targets will be 0.8000 and below the lower limit of the rising channel. Volatility is likely to rise slightly tomorrow after the release of macro statistics on business confidence in Australia.