Today, the first round of the European QE will be operated, hurting the EURUSD which was already down, barely clinging to 1.0850. USA’s labor data on Friday came up better than expected as the NFP was reported up to 295k while the Unemployment Rate fell to 5.5%. The Average Hourly Earnings index is still declining, this time by 0.1%, the Trade Balance was close to expectations at -41.8 billion and the Consumer Credit decreased to 11.6 billion.
Suddenly, the American dollar repositioned to its counterparties, so the USDJPY is now trying to stabilize above the 120 support level, AUDUSD and NZDUSD marked new lower lows at 0.7700 and 0.7310, USDCHF broke the 0.9850 resistance level, respectively the 78.6 Fibonacci retracement level. Obviously, in relation with the minor and emerging currencies, the American dollar was, by far, declared the winner. The danger for the EURUSD is still in place so after the price corrects itself, the currency pair may go lower, to 1.0760, the nearest support level.
The most spectacular movements may be observed in the indexes markets. The German DAX retested the 11500 support level, having a more controlled reaction while the US30 (17811 low), US500 (2065 low), US100 (4388 low) and US2000 (1213 low) reached new local lows.
The political risks for leaving the euro zone are seriously weakening the sterling pound and cumulated with the neighbors’ still fragile situation, a short-term trend direction is probable to be on the way. The GBPUSD is currently trading above the support level at 1.5055 where the resistance level is given by 1.5090 and the support level is situated to 1.4950. EURGBP continues its declined undisturbed, leaving far behind the dreaded 0.7400 minimum and running now to the 0.7100 support zone.
Gold has clearly lost ground and left the lateral movement that was respecting before the NFP report. The ounce of gold is now resting at the 1170 support level and may be tempted to return to the 1180 resistance level.
Both WTI and Brent quotations lost ground as the dollar appreciated and the rising consumption perspective improved. After the WTI oil went down to 48.90 dollars and Brent shortly traded at 59.16 dollars, technically speaking, the two types of petroleum seem now determined to recover the losses. It may take a few days or even a week, but the price of oil will inevitably be attracted by its oldest resistance levels.
