EUR/USD Current price: 1.2967
Cyprus downgraded by Moody’s, Greece asking for time to honor its debt, Portugal ready to receive next tranche of help up to €4.3 billion despite the country would likely miss the targets laid out in exchange for the bailout, and Spain still mute in the bailout request front. No wonder why market has shown little excitement today after the EU finally approved the ESM; no wonder either why despite dollar weakness the EUR remains capped to the upside, unable to sustain gains above the 1.30 mark. Having been as low as 1.2937 early Europe, the EUR/USD enters Asian session trading right below the 1.2970 level static resistance area with the hourly chart showing price being capped by a bearish 20 SMA and indicators heading north below their midlines. In the 4 hours chart, a slightly bearish tone exists, although the technical stance is mostly neutral; short term support comes at 1.2930 ahead of stronger 1.2880 area.
Support levels: 1.2930 1.2905 1.2880
Resistance levels: 1.2970 1.3000 1.3030
GBP/USD Current price: 1.6021
The GBP/USD trades at daily lows, having been unable to recover from the 4-week low reached this Monday and even aiming to break below it. The bearish momentum has increased in the pair, and the hourly chart shows a strongly bearish 20 SMA, capping the upside now around 1.6030, past session high, and indicators flat in oversold territory, with no aims of correcting higher. In the 4 hours chart RSI also turned flat around 30, yet momentum continues heading south: the bears will likely remain in control while price holds below the 1.6060 mark, with scope now to test 1.5940 static support zone.
Support levels: 1.6005 1.5980 1.5940
Resistance levels: 1.6030 1.6060 1.6090
USD/JPY Current price: 78.30
USD/JPY reached a daily low of 78.07, losing 100% of the gains added after Friday US NFP, as risk again took the lead; extreme amount of longs in the USD/JPY, according to COT report are only adding to the bearish tone that is set now to break again below the 78.00 area. The hourly chart shows price trading between 100 and 200 SMA, while indicators stand in negative territory; in the 4 hours chart, the technical outlook is a bit more neutral, with indicators standing flat in neutral territory. What actually ads to the bearish case, is the fact that the pair failed again at the 100 DMA, having been trading below it since late May; also the 100 DMA is now below 200 one, which will keep the upside limited around 78.80 static resistance zone.
Support levels: 78.10 77.90 77.65
Resistance levels: 78.30 78.50 78.80
AUD/USD: Current price: 1.0192
The AUD/USD found buyers around 1.0220, having again show a quite limited upside scope. Having been as low as 1.0148, the pair enters Asian session with the hourly chart showing indicators heading south right above their midlines, and price finding short term support at 20 SMA; in the 4 hours chart 20 SMA still bearish capped the upside at mentioned daily high while indicators retreat from their midlines, giving the pair scope to test parity if risk sentiment continues to lead the way this week. 1.0270 is seen now as the top resistance to keep the bears on track in the short term, while a break below 1.0150 will only exacerbate selling interest in the pair.
Support levels: 1.0150 1.0120 1.0080
Resistance levels: 1.0200 1.0235 1.0270
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