EUR/USD Current price: 1.2869
An eye blink: that’s how long Obama’s victory euphoria lasted in the forex market. Attention shifted quickly to Europe, where Greece will be deciding today whether to approve, or not more austerity measures and the latest EU growth forecast report that painted a doom future for Europe. ECB’s president Mario Draghi, did not helped much stating also that Germany is being dragged down with the rest of the euro zone. Sentiment shifted to risk aversion, and dollar soars across the board, but when it comes to the EUR/USD, seems bears are just starting to warm up: the pair tested and holds quite close to a key support area around 1.2740, 38.2% retracement of its latest daily bullish run from 1.2040 to 1.3170. The level also stands for past June monthly high, so a final break below it, will open doors for a continuation of current selloff. Worth noticing, when Obama won 2008 elections, US indexes and the EUR where under heavy selling pressure for a couple of weeks. Technically speaking the hourly chart shows a strong downward momentum, while it the 4 hours chart indicators are barely starting to reverse previous bullish tone. As long as below 1.2770/1.2800, the downside is favored in the short term, with another attempt below 1.2740 pointing for a test of the 1.2680 price zone today.
Support levels: 1.2740 1.2710 1.2680
Resistance levels: 1.2770 1.2810 1.2850
GBP/USD Current price: 1.5967
The GBP/USD is also being pressured by market sentiment, finding short term support at the strong static level around 1.5950, which capped the downside earlier this week. The hourly chart presents a clear bearish momentum, with price below 20 SMA and indicators heading south below their midlines, although mentioned supports needs to be clearly broken to confirm more falls ahead. In the 4 hours chart the technical outlook is also bearish, with the upside limited in the short term by the 1.6000 area.
Support levels: 1.5950 1.5910 1.5880
Resistance levels: 1.5990 1.6025 1.6065
USD/JPY Current price: 79.90
The USD/JPY broke below the 80.00 level showing an important increase of the bearish pressure; failure to break above the 80.60 area is discouraging yen sellers that seem ready to take profits out of the table. The hourly chart shows price standing below 100 and 200 SMA, while indicators head strongly south below their midlines, suggesting more slides to come. In the 4 hours chart technical indicators also stand in negative territory and heading lower, which supports the shorter term view: immediate support now comes at 79.60, 200 DMA, followed by recent daily lows around 79.20. Daily close below mentioned DMA will set the tone for a possible retest of the 78.80 area over the upcoming sessions.
Support levels: 79.60 79.20 78.80
Resistance levels: 80.00 80.30 80.60
AUD/USD: Current price: 1.0422
Aussie holds pretty well on current market environment, as AUD/USD stands barely below Asian opening levels. The hourly chart turned bearish, as price broke and advances below 20 SMA, although only below 1.0410 immediate support the bearish tone will get confirmed. In the 4 hours chart technical readings hold in positive territory, turning slowly lower but not signaling yet a strong bearish momentum; US stocks will lead the way as further slides in indexes will put extra pressure on AUD towards the 1.0360 price zone.
Support levels: 1.0410 1.0360 1.0335
Resistance levels: 1.0445 1.0470 1.0500