EUR/USD Current price: 1.2987View Live Chart for the EUR/USD
Greek debt buyback complete, nearing 31 billion Euro debt target; Spain and Italian yields are down from yesterday’s high; stocks post strong recoveries fueling risk appetite; market expects the FED to extend QE tomorrow. And yet the EUR/USD is having a hard time to establish above the 1.3000 level. And why should it? The ECB considered negative rates in its last meeting, and that should sum it all up: a strong euro is not good business to anyone in Europe. And while the dollar is far from strong, if market sentiment turns against the greenback, won’t be the EUR the one to outperform among majors. Better take a look at commodity currencies now, that may shine as China growth concerns ease.
Anyway and for the short term, the EUR/USD hourly chart shows a strong positive mood with price consolidating in between 1.2970/1.3000 ahead of the US opening, with indicators standing in positive territory yet losing some momentum. In the 4 hours chart there is also a positive bias, with 1.3020/30 area as immediate resistance level, to probably be reached over the upcoming hours. The downside remains limited by 1.2930/40 price zone.
Support levels: 12970 1.2935 1.2910
Resistance levels: 1.3000 1.3030 1.3065
GBP/USD Current price: 1.6093View Live Chart for the GBP/USD (select the currency)
The GBP/USD surged to 1.6100, finding short term resistance in the 78.6% retracement of the latest daily fall, holding a positive momentum according to the hourly chart. Price is finding short term support in the 20 SMA, currently around 1.6080, while indicators in the mentioned time frame hold the positive territory. In the 4 hours chart the upside momentum seems stronger although the pair has a strong static resistance level around 1.6115 that may attract sellers. Clear gains above it are now required to confirm further gains ahead for the GBP.
Support levels: 1.6080 1.6065 1.6025
Resistance levels: 1.6120 1.6150 1.6190
USD/JPY Current price: 82.35View Live Chart for the USD/JPY (select the currency)
The USD/JPY traded higher in range, finding short term support around 82.30 still trapped in range and with no signs of breaking anytime soon. In the hourly chart, price hovers between 100 and 200 SMA’s, while indicators head south near their midlines, putting some pressure on greenback. In bigger time frames however, the pair maintains a neutral stance that reflects recent range. The upside continues to be favored as long as 81.50 caps the downside.
Support levels: 82.10 81.80 81.50
Resistance levels: 82.30 82.60 82.85
AUD/USD: Current price: 1.0505View Live Chart for the AUD/USD (select the currency)
Australian dollar surges against the dollar, with the pair battling in the 1.0500/10 area and with a strong upward momentum according to the hourly chart. Still unclear if price will be able to extend to the upside, price needs to extend beyond 1.0510, maybe complete a pullback to the level, and regain the upside to be able to continue rising. In the 4 hours chart technical readings favor the upside with price above 20 SMA and indicators again bouncing north from their midlines.
Support levels: 1.0460 1.0430 1.0400
Resistance levels: 1.0510 1.0550 1.0570
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