EUR/USD Current price: 1.2736
US FOMC Minutes triggered a dollar kneejerk across the board, as the Committee said the central bank may need to expand its monthly purchases of bonds next year after the expiration of Operation Twist; rally was however short lived, as risk aversion took over markets: stocks sunk after the news, with DJIA and S&P down over 1.4%. The EUR/USD enters Asian session pretty much where it was with US opening: struggling around the 38.2% retracement of the 1.2040/1.3170 daily run at 1.2740. In the hourly chart, a slightly positive tone persists, as the pair stands right above a short term ascendant trend line that along with 20 SMA offer some support; indicators are in positive territory, although turning lower, showing not enough strength at the time being. In the 4 hours chart earlier upward momentum vanished, and indicators turned flat right above their midlines; overall, bears continue to dominate the pair as latest approach to 1.2780 area was taken as a good selling opportunity, but lower lows and continued pressure on the Fibo level may see sellers finally giving up: further confirmation will be seen if price manages to take the 1.2780/90 resistance area, with scope then for a run towards 1.2840/80 area.
Support levels: 1.2725 1.2690 1.2660
Resistance levels: 1.2745 1.2790 1.2820
GBP/USD Current price: 1.5838
Things in the UK are not better according to the latest inflation report, as Governor Mervin King stated that economy may contract further in the last quarter of this year, and growth will be subdued for the foreseeable future, blaming it on EU crisis shrinking export demand. The GBP/USD trades at its lowest level since early September, breaking below the base of the daily descendant channel, sign of bearish acceleration in the pair. The hourly chart shows strong bearish momentum persists, while price is being limited to the upside by its 20 SMA. In the 4 hours chart technical readings also support the downside; quite close to 1.5850/60 immediate resistance level, failure to overcome it will expose 1.5770 support over the upcoming hours.
Support levels: .5820 1.5770 1.5830
Resistance levels: 1.5850 1.5880 1.5915
USD/JPY Current price: 80.25
Elections in Japan put the yen under pressure across the board, with the USD/JPY reaching a daily high of 80.32, and spending most of the day consolidating nearby. The hourly chart shows price above 100 and 200 SMA, while indicators hold in overbought territory, keeping the downside limited despite ongoing risk aversion environment. In bigger time frames, the picture is quite the same, with indicators slightly exhausted in overbought territory. 80.60 will be the big challenge for USD/JPY bulls as break above the level should open doors for further advances towards the 82.00 price zone.
Support levels: 80.05 79.60 79.20
Resistance levels: 80.60 80.90 81.10
AUD/USD: Current price: 1.0369
Aussie surrendered to falling stocks, sinking against the greenback to 1.0365 and trading at the time being, right above the daily ascendant trend line coming from 1.0150. The hourly chart shows indicators exhausted to the downside in oversold territory, although price continues to push lower. The trend line will tests latest bulls determination, as once below, the dip may extend near the 1.0300 price zone before buying results again attractive. In the 4 hours chart technical readings also head south pointing for a downward continuation, yet to be confirmed with the break of the trend line.
Support levels: 1.0360 1.0330 1.0300
Resistance levels: 1.0400 1.0445 1.0480
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