EUR firm, GBP pressured

EUR/USD Current price: 1.3465

View Live Chart for the EUR/USD

The EUR/USD opened the week firmly trading around Friday’s close, maintaining the bullish bias set after the break above 1.3400. With not much news schedule for Asia, the pair will likely trade in between the 1.3400/1.3485 area this Monday. 1.3485 past 2012 yearly high, continues to be the level to break to confirm an upward extension in the pair, that may reach the 1.3600 area later this week. In the short term, the hourly chart shows price well above a strongly bullish 20 SMA, while momentum losses upward potential and RSI stands near overbought levels, which suggest some short term bearish corrective movement may come first: 1.3450 comes as immediate support and if below, the downside is expose up to the 1.3380 area, without really harming current bullish trend. An acceleration above 1.3485 on the other hand, will deny such possibility, and see another strong spike higher as stops got boosted. 

Support levels: 1.3450 1.3420 1.3380 

Resistance levels: 1.3485 1.3510 1.3545

GBP/USD Current price: 1.5764

View Live Chart for the GBP/USD (select the currency)
The GBP/USD gapped lower at the opening, near 1.5744 past week low and the  lowest level since August last year, as market continues to fear a triple-dip recession in the UK. Future BOE governor Mark Carney triggered the alarm at the ongoing Forum in Davos, stating that central banks should be ready to take aggressive measures to help economies recover. As for short term technical readings, the pair starts the week with a clear bearish tone in the hourly chart, although price may attempt to fill the gap and near 1.5800 before resuming the downside. If price tests the 1.5800/20 area yet quickly retraces back, chances of a break below 1.5740 and further fall increases, with 1.5660 then at sight for today. 

Support levels: 1.5740 1.5700 1.5660 

Resistance levels:  1.5810 1.5850 1.5885

USD/JPY Current price: 91.07

View Live Chart for the USD/JPY (select the currency)
The USD/JPY trades steady around 91.00, with the hourly chart showing indicators heading back north in positive territory, after erasing overbought readings. Overall, and despite the extreme readings in bigger time frames (weekly RSI stands above 85.00) there is nothing around to suggest a bearish move is nearby. Dips continue to be seen as buying opportunities, with 90.00/20 area now the level to watch. Steady gains above 91.20, should open doors for a test of 92.00 later today.

Support levels: 90.90 90.55 90.20 

Resistance levels: 91.20 91.60 91.95

AUD/USD: Current price: 1.0415

View Live Chart for the AUD/USD (select the currency)
Australian dollar remains weak against the greenback, as market prices in a rate cut in Australia for upcoming meeting early February. The pair still holds the 1.0400 level, although the bearish tone remains strong according to the hourly chart that shows price below 20 SM and indicators heading lower in negative territory. In the 4 hours chart indicators hold in oversold territory, with little aims to go higher at the time being: price needs at least to recover the 1.0450 level to erase the bearish tone, while once below 1.0390, the downside will be exposed up to 1.0300 area.

Support levels: 1.0390 1.0345 1.0300

Resistance levels: 1.0450 1.0490 1.0520 

  New to Forex? Visit our  Glossary!

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.