EUR/USD Current price: 1.2970
Market was all about sentiment on Thursday and the greenback has been the most benefited, extending its gains across the board. While the movement stalled at several major support/resistance levels, the retracements have been uneven so far; particularly when it for the EUR/USD, the pair found support at the 1.2920/30 area, where the pair found the 61.8% retracement of this year fall, along with 38.2% retracement of its latest leg up. Buyers defended the area, but the following bounce remains so far limited, with the pair unable to clear current 1.2970 which has capped price most of the American session. Furthermore, the hourly chart shows price hovering around a flat 20 SMA while indicators hold in negative territory, while in the 4 hours chart, 20 SMA holds a strong bearish slope currently around 1.3030.
A short term descendant trend line, coming from 1.3170 offers now immediate resistance around 1.3010: price needs to clearly break and hold above, to convince traders the EUR/USD will continue moving higher. On the other hand, failure below 1.2910 may see the bearish pressure increase, with price looking then to retest 1.2745 July highs and strong static support. The level will stand as last support for bulls, and if below, the pair is set to continue tumbling in the days to come.
Support levels: 1.2930 1.29105 1.2880
Resistance levels: 1.2980 1.3010 1.3030
GBP/USD Current price: 1.6217
The GBP/USD ended the day pretty much unchanged, although having set a lower low and a lower high daily basis, which keeps the downside still exposed. Having advanced over 500 pips since the month started with no much corrections in the middle, the daily chart shows indicators turning lower from overbought levels, another signal of a probable correction lower. However, price stalled this Thursday at key 1.6160 static support level, and as long as above, bears will have a hard time to push price lower. For the short term and according to the hourly chart a slightly positive tone surges early Asia, with price pressuring 1.6120 price zone; in the 4 hours chart the stance is mostly neutral, giving no clear clues at the time being. Overall, bulls remain in controls yet hesitating at current levels: a break above 1.6270 will be the sign of more gains ahead.
Support levels: 1.6195 1.6160 1.6120
Resistance levels: 1.6240 1.6270 1.6310
USD/JPY Current price: 78.24
The USD/JPY dipped to 78.01 after worse than expected US unemployment claims, trading mostly range bound afterwards, capped y 78.40 static resistance zone. While the hourly chart shows technical readings mostly flat, the 4 hours one continues to favor the downside in the pair. As mentioned on previous updates, buyers may be aligned around 77.90, yet stops are right below: if the level fails, a retest of 77.12 past week low is the most likely scenario for Friday.
Support levels: 77.90 77.65 77.30
Resistance levels: 78.40 78.80 79.00
AUD/USD: Current price: 1.0430
The AUD/USD managed to recover after reaching 1.0366 on the back of disappointing Chinese data during past Asian session. The pair spent most of the day trading below 1.0400, managing to recover up to 1.0445 following late US indexes recovery. Still, the pair hovers around the neckline of a H&S figure clear in the 4 hours chart, with hourly indicators showing not much upward strength at the time being, and 20 SMA heading lower below current price. Price behavior over the next few hours will be key for next week movements, as steady gains above 1.0440/50 area, will deny the figure and likely advance another retest of the 1.0510 area. On contrary, failure to hold above 1.0400 will expose the downside even further, looking for the 1.0300 level in this last trading day of the week.
Support levels: 1.0400 1.0365 1.0335
Resistance levels: 1.0440 1.0470 1.0510
Today's new term is Ballooning Spreads.