EUR/USD Current price: 1.2768
All hell broke loose today, when Europe published its economic growth forecast, triggering a strong risk aversion rally across the world. Shocking is the fact that someone was actually expecting good news, rather than the actual negative outlook for the year to come. Anyway, stocks and commodities nose dive, giving dollar a boost particularly against European rivals. With Greece Parliament finally passing the bill on more austerity measures, the EUR/USD sees a limited advance, but holds the overall bearish momentum. Mostly unchanged since early US session, the pair holds above 1.2740 area, 38.2% retracement of the 1.2040/1.3070 rally, that stands as immediate support. The upward corrective movement may continue towards 1.2800, yet if local share markets follow their overseas partners, we may see a retest of mentioned 1.2740, while a break below will surely signal further falls to come this Thursday. Corrective movements should hold below 1.2800 so as bears remain in control of the pair.
Support levels: 1.2740 1.2710 1.2680
Resistance levels: 1.2770 1.2810 1.2850
GBP/USD Current price: 1.5987
The GBP/USD found some bids around 1.5950 weekly low, having bounced as high as 1.6000 mid American session, where the 1 hour 20 SMA acted as dynamic resistance. In the mentioned time frame, the technical outlook remains bearish, as the MA heads lower while indicators stand in negative territory, although there’s a good chance market will stay away from the pair, ahead of upcoming BOE’s meeting; there’s has been loads of speculation on whether the bank will be announcing or not an extension of its facility program, and with markets overstressed with US elections and latest European developments, won’t be a surprise to see in investors a wait and see stance. As for the 4 hours chart technical readings had turned neutral after the pair recovered from mentioned 1.5950 low, giving no much clues on what’s next for the pair. Key levels to watch, stand at 1.6020 to the upside, and 1.5950 to the downside, as a break of either, will likely set the intraday trend.
Support levels: 1.5950 1.5910 1.5880
Resistance levels: 1.5990 1.6025 1.6065
USD/JPY Current price: 79.92
Pretty much unchanged since last update, the USD/JPY trades barely below 80.00, which at the end, suggest a great performance considering US Yields collapsed with stocks this Wednesday. Short term bearish, the longer term bullish tone remains present after today’s developments. The hourly chart shows price still below 100 and 200 SMA, with the latest offering short term resistance around 80.00, while indicators stand in negative territory, yet losing earlier bearish potential. In the 4 hours chart technical indicators also lost the bearish tone, and are slowing turning north, although still below their midlines. 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, while a return above 80.00 will signal a short term bullish continuation in the pair.
Support levels: 79.60 79.20 78.80
Resistance levels: 80.00 80.30 80.60
AUD/USD: Current price: 1.0402
Aussie trades near 1.0400 against the greenback, ahead of Australian employment data to be released in a couple of hours. The pair has a heavy tone after New Zealand reported unemployment rate rose to 7.3% from an expected 6.8%, which suggest its neighbor readings may also disappoint. Technical readings show an increasing bearish momentum in the hourly chart, with price still capped below 20 SMA and indicators nearing oversold readings. In the 4 hours chart however, price is actually finding support in its 20 SMA, while indicators turn flat in positive territory; if data disappoints and the pair losses 1.0370, expect further falls in Aussie towards the 1.0300 level. Encouraging data on contrary, may see the pair aiming back higher towards the 1.0480 highs.
Support levels: 1.0400 1.0370 1.0335
Resistance levels: 1.0445 1.0480 1.0510