EUR/USD Current price: 1.2847
After failing twice around 1.2910, Fibonacci resistance level, the EUR/USD surrendered late US session, falling back below the 1.2880 area as American indexes nose dive. Rating agency cutting Spanish rating to BBB- from BBB+, matching now Moody, is only one factor weighting in the pair: the little market confidence so hardly acquired after the announce of OTM by the ECB early September, is being quickly eroded by Spain denial to the bailout request, and the fact that Greece is unable to face its obligations. Europe has been just winning time, and is now running short of it. In the meantime, the EUR/USD trades heavy early Asian session, falling sharply from the mentioned Fibonacci resistance and looking for a test of the 1.2834 low set early Wednesday. The hourly chart shows a strong bearish momentum building up, while in the 4 hours chart, indicators head back south after correcting oversold readings, all of which supports further falls. Keep an eye on past week low of 1.2803, as once below, the pair may attempt to test the 38.2% retracement of the latest daily bullish run around 1.2745.
Support levels: 1.2835 1.2803 1.2745
Resistance levels: 1.2880 1.2910 1.2950
GBP/USD Current price: 1.5999
GBP/USD attempt of recovery stalled at the 1.6033 level, from where the pair retrace back to current price zone. Tight range for the GBP/USD, the pair continues consolidating according to the hourly chart that shows price around a flat 20 SMA, and indicators also flat in neutral territory. The 4 hours chart shows some bullish divergences, with momentum aiming strongly up and nearing 100, while price remains capped below 20 SMA and remains under pressure. Failure of momentum indicator to extend beyond its midline on next candle opening, will deny any chance of recovery and put the bears back in control, with 1.5970 weekly low, as immediate support. Once below, the pair has scope to extend its slide near 1.5900 this Thursday.
Support levels: 1.5970 1.5940 1.5910
Resistance levels: 16000 1.6040 1.6065
USD/JPY Current price: 78.13
Risk aversion is seeing a fresh advance in the USD/JPY that trades right above 78.10 static support zone. After failing early week at its 100 SMA around 78.80, the hourly chart shows price now trading below both 100 and 200 SMA while indicators head lower below their midlines, pointing for a downside continuation in the short term; dollar demand may see the slides limited in the pair, although upward movements are seem even more limited. In the 4 hours chart technical readings hold a neutral stance, but turning slightly lower, supporting the shorter term view.
Support levels: 78.10 77.90 77.65
Resistance levels: 78.50 78.80 79.10
AUD/USD: Current price: 1.0213
The AUD/USD set a weekly high at 1.0261 before also falling strongly amid dollar demand, gaining bearish momentum and with the hourly chart showing price extending below 20 SMA nearing 1.0200, and indicators crossing south their midlines. In the 4 hours chart price is now testing 20 SMA, while indicators aim higher in positive territory without reflecting recent slide: a break below 1.0200 will probably mean a retest of the 1.0150/60 area that has seen buyers surge over the past few days. If below this last the downside is exposed towards 1.0000 for the upcoming sessions.
Support levels: 1.0200 1.0160 1.0120
Resistance levels: 1.0235 1.0270 1.0300
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