EUR/USD Current price: 1.3041
Buying interest in the EUR/USD is quite firm this Monday, mounted on several positive news since the week opened, starting with improving Chinese PMI, passing through a Spanish bank bailout request, and ending just now with US Final Manufacturing PMI that improved to 52.8 from 52.4 the previous month. Stocks are strongly up in Europe, and although price eases from the 1.3073 daily high, the ruling trend continues to be bullish. In the hourly chart indicators are coming back from overbought readings, pointing for some correction/consolidation ahead. However, if price holds above the 1.3000/10 area, the upside continues to be favored towards 1.3170 over the upcoming sessions.
Support levels: 1.3035 1.3000 1.2970
Resistance levels: 1.3080 1.3110 1.3145
GBP/USD Current price: 1.6070
Dollar selloff sent GBP/USD above the daily descendant channel, and the pair trades right around it, in what could be a corrective pullback: if price bounces back higher from current level and extends beyond current high of 1.6085, the upward momentum may extend towards 1.6130 area today. The hourly chart, shows indicators still heading north above their midlines, while 20 SMA offers dynamic support around 1.6040. In the 4 hours chart technical readings remain strongly bullish, supporting the shorter term view.
Support levels: 1.6040 1.6010 1.5980
Resistance levels: 1.6085 1.6110 1.6150
USD/JPY Current price: 82.36
Yen gained some track this Monday, with the USD/JPY reaching a daily low of 81.98 before bouncing back to daily opening levels. For the short term, the hourly chart shows price recovering above 100 and 200 SMA’s despite indicators stand in negative territory, which suggest the bearish pressure is quite limited. In the 4 hours chart the upward tone is quite stronger, with momentum and RSI now bouncing from their midlines. Range will likely persist in the pair, with 81.50/82.85 as the main extremes to break to set a clearer trend.
Support levels: 82.20 81.80 81.50
Resistance levels: 82.60 82.85 83.10
AUD/USD: Current price: 1.0427
The AUD/USD trades mostly unchanged since early market opening, and even with a slightly bearish tone according to price action. Despite Chinese positive data, the AUD refused to advance, as market prices in up to a 90% chance of a rate cut in Australia during next Asian session. The pending data will likely keep the pair subdue until the release. If the RBA stays on hold, the pair will likely soar back towards the 1.0480 area, as the upside remains favored according to technical readings. Only below 1.0370 bears will gain control of the pair with 1.0300/30 as next big support area.
Support levels: 1.0400 1.0370 1.0330
Resistance levels: 1.0435 1.0480 1.0510