EUR/USD Current price: 1.2965
As expected, FOMC closed the day with an uneventful monetary policy meeting that hardly moved majors 20 pips. Early Europe, disappointing PMI’s in the UE trigger some risk aversion sending EUR/USD to a daily low of 1.2920, although good earnings reports in the US along with a good PMI helped stocks to bounce off lows. FOMC shed no light over the forex market, and majors enter the Asian session mixed, with commodity currencies stronger across the board. Despite stocks and commodities are strongly down, dollar seems incapable to regain the upside. The EUR/USD hourly chart shows a failure attempt to break below the daily ascendant trend line, still offering support around 1.2960, while 61.8% retracement of latest daily run lays at 1.2950. All in one the area turned quite messy and buyers and sellers are battling around it, with no visible winner yet. Technical readings in the mentioned time framed turned flat, while in the 4 hours chart technical readings hold mostly bearish. Price needs to clearly establish above the 1.2980/1.3000 area to be able to erase those bearish readings and attempt further gains.
Support levels: 1.2950 1.2910 1.2870
Resistance levels: 1.3010 1.3045 1.3070
GBP/USD Current price: 1.6035
Pound surged this Wednesday, supported by UK Prime Minister David Cameron that got an early release of tomorrow’s GDP numbers, and hinted a strong reading. However, the pair stalled again below 1.6065 resistance area, and spent most of the US session consolidating early gains. The hourly chart shows indicators turning flat in positive territory after correcting overbought readings, while price stands above a strongly bullish 20 SMA. In the 4 hours chart upward momentum is also building up as indicators aim to cross their midlines and price stands well above 20 SMA. Steady gains above 1.6065 is what it takes to expose a retest of the daily descendant trend line coming from 1.6308 this year high.
Support levels: 1.6000 1.5970 1.5920
Resistance levels: 1.6065 1.6095 1.6120
USD/JPY Current price: 79.82
Unchanged since last update, the USD/JPY traded in a tight 30 pips range for the past 3 days, which leaves the hourly chart indicators flat, giving no clues on direction for the short term. Still above its 100 and 200 SMA’s in the mentioned time frames, bigger ones show bearish pressure building up, anticipating a downward correction ahead. Dips towards 79.40 will likely be seen as buying opportunities yet once below this last, the 78.80 area is exposed on renewed selling interest. Steady gains above 80.00 may deny chances of a downside correction and price will likely extend near 80.50 before finding resistance.
Support levels: 79.70 79.40 79.10
Resistance levels: 80.00 80.30 80.60
AUD/USD: Current price: 1.0344
Aussie was among the winners today, surging above the 1.0335 level, 38.2% retracement of the latest bearish daily leg. The hourly chart shows 20 SMA now converging with the Fibo strengthening the support in the short term, while indicators lost early upward momentum still in positive territory. In the 4 hours chart the technical readings are still bullish and the stance will hold as long as mentioned support attracts buying interest. 1.0410 past week high is immediate target if price continues is slow advance.
Support levels: 1.0335 1.0300 1.0260
Resistance levels: 1.0370 1.0410 1.0445
Today's new term is Convertibility Risk.