EUR/USD Current price: 1.2778
Market for once ignored stocks this Thursday, an temporarily forgot about Greece: US data was shockingly negative, with unemployment claims rising to 439K, highest since May 2011. Philly Fed Manufacturing Index also disappointed with a -10.7, while the American afternoon was fulfilled with more US QE supporters among FED members. The dollar ended up lower against European rivals, with the EUR/US flirting with the 1.2800 level. The hourly chart shows price holding above the ascendant trend line coming from 1.2660, and dips finding buyers on this new buoyant euro market mode. In the mentioned time frame, indicators head north above their midlines while 20 SMA gains bearish slope, supporting an upside continuation. In the 4 hours chart technical readings are also positive, giving the pair scope to test next key resistance around 1.2880.
Support levels: 1.2750 1.2725 1.2690
Resistance levels: 1.2810 1.2840 1.2880
GBP/USD Current price: 1.5866
Pound continues to look heavy against the greenback, still in consolidative mode around the base of the daily descendant channel coming from 1.6308. Dollar bearish momentum was not enough to lift GBP, hurt by UK negative Retail Sales figures. Technical readings in the hourly chart present a slightly bullish tone as price stands above 20 SMA while indicators bounce higher from their midlines, although with not enough momentum. In the 4 hours chart the pair holds a neutral stance that brings no light to the picture. Level to watch to the upside is 1.5920 area, as only above the pair mat attempt a stronger recovery towards the 1.60 area.
Support levels: 1.5850 1.5820 1.5770
Resistance levels: 1.5880 1.5915 1.5950
USD/JPY Current price: 81.15
Unlimited QE to fight deflation. That’s the idea of the Japanese party LP leader that the market heard today, sending USD/JPY to a fresh 7 month high of 81.46. Pullbacks so far have been limited with price holding the 81.00 level, while hourly indicators corrected most of their overbought state, which suggest there are not much sellers around and dips will likely be understood as buying opportunities. Bigger time frames hold a strong upward momentum that favor a continuation, now targeting 82.50 price zone.
Support levels: 81.10 80.80 80.35
Resistance levels: 81.45 81.70 82.00
AUD/USD: Current price: 1.0330
Aussie may have disappointed longs, as the AUD/USD broke below a daily ascendant trend line, and fell to 1.0307 before halting. Bounce from this latest however, remained limited with the pair now struggling to regain the 1.0330 price zone, which offered strong support since late October. The hourly chart shows 20 SMA right above current price offering short term resistance, while indicators turned flat in negative territory; in the 4 hours chart indicators are bouncing higher from oversold levels, yet if price did not manage to quickly extend near 1.0370, risk of further falls remains high with a break below 1.0290 accelerating the slide.
Support levels: 1.0290 1.0260 1.0220
Resistance levels: 1.0330 1.0370 1.0410
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