EUR, AUD: Dollar poised to advance this week

EUR/USD Current price: 1.3319

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The EUR/USD opened the week struggling to hold gains above the 1.3300 level, after failing for second week in a row to breach the 1.3400 mark. As for the short term, the outlook remains bearish according to the hourly chart, with indicators heading south below their midlines with the weekly opening and price capped below 20 SMA. Price however, holds around 1.3320, 23.6% retracement of the latest daily run, and further gains above will deny the downside in the short term, although only above 1.3350 the pair can gather some real momentum. On the other hand, 1.3260 stands as the key level to watch to the downside, 38.2% retracement of the same rally and neck of the double top under development. Stops are likely below, and if hit, the run may extend towards 1.3180 area today.

Support levels: 1.3290 1.3250 1.3220

Resistance levels: 1.3350 1.3375 1.3400

GBP/USD Current price: 1.5947

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Pound starts the day at fresh 10-week lows against the greenback, quite close to 1.5820 past November monthly low and immediate support. Recession fears in the UK along with continued talking of a triple dip, will likely see more GBP selling this week. In the short term and according to the hourly chart, bears remain in control as indicators head strongly south in oversold territory, while 20 SMA now offers short term resistance around 1.5880, also past American session highs. 4 hours chart also presents a bearish tone, and as long as below 1.5910/20 the downside is favored towards 1.5770 static support.

Support levels: 1.5820 1.5770 1.5720

Resistance levels: 1.5885 1.5915 1.5950 

USD/JPY Current price: 90.17

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Steady above 90.00, the USD/JPY maintains its bullish tone, despite the hourly chart shows indicators mostly flat, with a neutral stance. In the hourly chart, 200 SMA approaches fast to 100 one, reflecting latest consolidative stage, yet still the downside seems limited and pullbacks should be understood as buying opportunities, with 89.40/60 area now attracting buyers. In bigger time frames, the upward momentum seems more healthy, supporting the shorter term view. 90.40 comes now at resistance for the short term, with 92.50 at sight this week, as long as mentioned 89.40/60 area holds.

Support levels: 89.80 89.50 80.30

Resistance levels: 90.40 90.75 91.00

AUD/USD: Current price: 1.0507

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While slowly losing the upside potential, the AUD/USD holds above the 1.0500 mark, which suggest not enough selling pressure around yet. Short  term bearish, the hourly chart shows price hovering around a strongly bearish 20 SMA while indicators retreat from their midlines, heading back lower in negative territory. In the 4 hours chart bias is also negative according to technical readings, with chances of an extension towards 1.0430 if 1.0480/90 support finally gives up. 

Support levels: 1.0490 1.0450 1.0430

Resistance levels: 1.0520 1.0550 1.0580


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