EUR/USD: Someone has to do something with the US session

EUR/USD Current price: 1.2749

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Positive US data, irrelevant rhetoric from Mario Draghi from the ECB, and nose diving stocks and US yields; nothing is enough to make the EUR/USD move in the US session lately, as the pair  enters in a comatose consolidation as soon as New York opens. While the pair posted a lower low of 1.2716, keeping the dominant bearish trend alive, there was no follow through, and we start Asian session still hovering around 1.2740 static Fibonacci level, 38.2% retracement of the 1.2040/1.3170 daily run. For the short term, the hourly chart shows price contained by a slightly bearish 20 SMA while indicators retrace from their midlines, supporting the negative stance; in the 4 hours chart technical readings are also bearish, with plenty of room to extend and with no aims to signal a reversal or even an upward correction. The big news for the week are over, but Chinese PMI and RBA Minutes may bring some entertainment. Most likely, sentiment will lead the Asian session: if local share markets come under pressure, a break below 1.2710 will favor a quick fall towards 1.2660 area. The upside will remain capped as long as price stands below 1.2785 price zone.

Support levels: 1.2710 1.2680 1.2650

Resistance levels: 1.2750 1.2785 1.2810 

GBP/USD Current price: 1.5981

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Limited by 1.6000, the GBP/USD surged after BOE left its economic policy unchanged, disappointing those expecting an extension of the APP. Negative market sentiment however, prevented the pair from advancing further, and the GPB/USD spent the rest of the day consolidating in a tight 20 pips range. While short term technical readings are mostly flat as seen in the hourly chart, repeated failure around 1.6000/20 continues to be a bearish sign for the pair. However, a confirmation for further slides will come only if price manages to break below 1.5912, past October monthly low, opening doors for a continuation towards the 1.5770 area, next big midterm support.

 

Support levels: 1.5970 1.5950 1.5910 

Resistance levels: 1.5995 1.6025 1.6065 

USD/JPY Current price: 79.42

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The USD/JPY finally surrendered to market sentiment, and a strong US bond auction was enough to make the pair close the day below its 200 DMA, first time since October 22nd.The hourly chart shows indicators aiming higher from oversold levels, although price remains still near daily low. 100 SMA approaches to 200 one around the 80.00 area, which turns it into a strong resistance for the short term. In bigger time frames, the bearish momentum has gained track: next support comes at 100 DMA, currently around 78.80, also strong static support level. 

Support levels: 79.20 78.80 78.35

Resistance levels: 79.70 80.00 80.30 

AUD/USD: Current price: 1.0402

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Despite maintaining the overall bullish trend, the EUR/USD pressures the 1.0400 support level, mounted on dollar demand and risk aversion rather than self weakness. The pair has tested levels sub 1.0400 past Asian session, and enters current one looking bearish in the hourly chart: indicators head south below their midlines, while price stands below 20 SMA. RBA Minutes after the Central Bank left rates unchanged will bring more light over the economic situation; latest macro readings were pretty positive, so a hawkish stance should not be a surprise, but surely AUD supportive. While market sentiment prevents the pair to gain, the downside continues to be limited, with supports at 1.0370 and 1.0335, this last, the last defense of bulls.

Support levels: 1.0400 1.0370 1.0335 

Resistance levels: 1.0445 1.0480 1.0510


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