EUR/USD Current price: 1.3004View Live Chart for the EUR/USD
Market is largely anticipating some sort of QE from the FED tomorrow. Wouldn’t be funny if they stay on hold? Although possibilities of no action are low, there is a chance. Despite Operation Twist, which consists of swapping short-dated securities for longer-term ones, comes to an end, the so called QE3 remains it place: the FED will continue buying $40 billion of agency mortgage-backed securities each month, as decided past September. With QE3 in place, the FED may well skip one or two months before announcing more facilities. If Bernanke fails to deliver, the happy buying in stocks could reverse in a blink, risk aversion gain the stage and dollar surge across the board. Small chance, but still a chance.
The EUR/USD has struggled around 1.3000 most of the last few hours, holding barely above with Asian opening. The hourly chart maintains a positive tone, with momentum regaining the upside and price standing above a bullish 20 SMA, although the pair presents a strong static resistance area around 1.3030, and seems hard to see a break above it over current session. In the 4 hours chart technical readings are also aiming higher, supporting more gains. An advance seems possible as long as price stands above 1.2970 immediate short term support.
Support levels: 12970 1.2935 1.2910
Resistance levels: 1.3030 1.3065 1.3100
GBP/USD Current price: 1.6111View Live Chart for the GBP/USD (select the currency)
The GBP/USD surged to a 5-day high of 1.6121, finding short term resistance in the strong static level, and retracing almost 100% of the latest daily slide. The 78.6% retracement of the 1.6126/1.6001 rally is now offering short term support around 1.6100, with a strongly bullish 20 SMA also around the level, reinforcing it. In the 4 hours chart the upside momentum remains strong yet only a clear advance beyond 1.6126 high could open doors for an extension towards 1.6200 for this Wednesday.
Support levels: 1.6100 1.6065 1.6025
Resistance levels: 1.6125 1.6150 1.6190
USD/JPY Current price: 82.51View Live Chart for the USD/JPY (select the currency)
Yen crosses surged mid American afternoon, with the USD/JPY extending its recovery to 82.56. The pair presents now a limited upward momentum according to the hourly chart, but the range persists and unless a break above 82.80, there’s little room to the upside right now. In bigger time frames, the pair maintains a neutral stance as per mentioned range, and dips remain as interesting buying opportunities, as long as 81.50 holds. If this last gives up, chances are of a downside continuation towards the 80.80 strong static support.
Support levels: 82.30 82.10 81.80
Resistance levels: 82.60 82.85 83.10
AUD/USD: Current price: 1.0505View Live Chart for the AUD/USD (select the currency)
With not much follow trough so far, the AUD/USD surged finally above 1.0510, and even completed a pullback to the level, standing now near daily high of 1.0531. The hourly chart shows a strong upward momentum after a brief correction of overbought readings, while in the 4 hours chart the break of the wedge coming from late September also supports more advances with scope now to test the 1.0620 price zone, huge static resistance level. While is a bit early to start considering so, a reversal around the area if reached could be an interesting selling opportunity in the AUD/USD, as 1.0650 should cap the upside over the next few weeks.
Support levels: 1.0510 1.0460 1.0430 1
Resistance levels: 1.0550 1.0570 1.0620
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