EUR/USD Current price: 1.2991
As the US session comes to an end, so is doing a forgettable Monday in the forex market. Stocks in Europe and the US ended up barely positive, as well as high yielders, although barely changed intraday. Dollar saw a limited slide after, as The White House said Social Security has its will not be part of the fiscal cliff discussions, reinforced now after the EU FinMin finally come with a done deal in Greece: no haircuts at sight, and an acceptable 124 pct debt/DGP in 2020. Basically, they again just bought some time. From the technical point of view, there’s not much going on, except the fact that the EUR/USD found buyers around 1.2950, 61.8% retracement of the 1.3170/1.2660 rally. As long as the level holds, bulls will keep control of the pair, with a break above 1.3000, past Friday’s high, pointing for an advance towards 1.3040, 78.6% retracement on the same rally. Main support for the upcoming sessions is the 1.2890/1.2900 static support that limited the downside most of past October, converging now with the 50% retracement of the same rally.
Support levels: 1.2950 1.2910 1.2880
Resistance levels: 1.3000 1.3040 1.3085
GBP/USD Current price: 1.6031
Having topped at 1.6051 on Friday, Pound has been pressured most of this Monday against the greenback, falling as low as 1.5995 before the announcement Mark Carney, current BOC president, will be next BOE’s one. Usually a hawker, boost in GBP/USD was enough to erase the short term bearish tone the pair had, with the hourly chart now showing price back above the 20 SMA and indicators still hovering around their midlines. In the 4 hours chart, indicators turned north in positive territory, which suggest more gains ahead: the roof of the daily descendant channel is located today around 1.6080, probable target for the pair if local share markets undone yesterday’s negative start.
Support levels: 1.6000 1.5960 1.5920
Resistance levels: 1.6050 1.6080 1.6120
USD/JPY Current price: 82.06
The USD/JPY extended its bearish correction from past week high of 82.81, testing 81.91 daily low. Trading right above the level, the hourly chart shows price being capped by 100 SMA around 82.30 and immediate short term resistance; technical indicators moved inside negative territory, yet showing no actual strength either side of the board. In the 4 hours chart however, technical readings present a stronger bearish momentum, pointing for a test of the 81.50 level, 61.8% retracement of this year slide. COT report shows shorts have been building up in the pair, but nothing really game changing at this time. Steady gains above 82.80 high, will favor a continuation rally towards 84.17 this year high.
Support levels: 81.90 81.50 81.20
Resistance levels: 82.30 82.60 82.85
AUD/USD: Current price: 1.0472
AUD/USD jumped higher after the news feed risk on, trading right below the 1.0480 mark immediate resistance level. The hourly chart shows price above 20 SMA and indicators in positive territory, still not reflecting this latest spike. Price behavior over this Monday however, favors a break higher, as well as 4 hours chart technical readings that regain the upside as price overcomes yesterday’s high. A break above 1.0510 will likely trigger a stronger momentum in the pair, with 1.0600 area then at sight for the upcoming sessions.
Support levels: 1.0435 1.0410 1.0370
Resistance levels: 1.0480 1.0510 1.0550