EUR/USD Current price: 1.3073
Italian elections came out as the worst scenario possible, a probable 3-way tie that points for a hung in Parliament, and therefore a halt in the reforms required by ECB to get financial aid. The OTM are now pretty much useless, at least to help Italy. The EUR fell the blow, nose diving across the board: after being as high as 1.3318, the EUR/USD trades now near the daily low set at 1.3046 with the hourly chart showing a strong bearish momentum as indicators head south in oversold levels. The 4 hours chart also presents a technical bearish tone, although the fall is now beyond technical readings: expect the pair to extend its slide once 1.3035 immediate support gives up.
Support levels: 1.3035 1.2990 1.2950
Resistance levels: 1.3120 1.3150 1.3185
EUR/JPY Current price: 119.90
Profit taking turned into a huge selloff in yen crosses, as Japanese monetary policy woes moved to the background. The pair fell over 650 pips from its daily high of 125.20, where a daily descendant trend line halt the upside early Monday. The hourly chart shows extreme oversold levels, yet attempts of recovery found resistance in the 120.40 price zone, and with the pair below the 120.00 mark, I won’t be expecting much gains today, yet on contrary, spikes will likely provide selling opportunities. The 4 hours chart shows a strongly bearish bias, and a retest of the lows around 118.70 seem likely for today.
Support levels: 119.45 119.00 118.70
Resistance levels: 120.40 120.90 121.50
GBP/USD Current price: 1.5163
Pound was benefited by EUR weakness, as the EUR/GBP lost over 200 pips with Italian news, helping GBP/USD to erase daily losses and approach 1.5200. However, the pair maintains its overall bearish tone, trading now around 1.5160 price zone. In the hourly chart, technical readings remain neutral, with indicators approaching their midlines and price barely above a flat 20 SMA, while the 4 hours chart shows 20 SMA again capped the upside, currently around mentioned daily high. Indicators head back south, retracing from their midlines which supports the dominant bearish trend.
Support levels: 1.5120 1.5070 1.5030
Resistance levels: 1.5160 1.5210 1.5265
USD/JPY Current price: 92.00
The USD/JPY finally found buyers in the 90.87 level, bouncing back towards current 92.00 area as market settles down. The hourly chart shows indicators aiming for an upward corrective movement, heading slightly higher from extreme oversold readings, although some stability above 92.20 is required to see price correcting higher. In the 4 hours chart, there’s a strong bearish tone persisting, although current candle opened above 200 SMA, around 91.50 and immediate support: renewed selling pressure below this last should lead to a bearish continuation with key 90.00 level then at sight.
Support levels: 91.80 91.40 91.00
Resistance levels: 92.20 92.70 93.10
AUD/USD: Current price: 1.0260
RBA Assistant Governor Guy Debelle said RBA can cut rates to counterbalance AUD pressures, putting the AUD/USD back in the bearish track: having been rejected from 1.0330 resistance area, the pair trades now around 1.0260 area, with the hourly chart supporting the bias, as price broke below 20 SMA while indicators head south below their midlines. In the 4 hours chart technical outlook is also bearish, yet 1.0220 base of these last days’ range stands in the way: only a clear break of this last should favor a stronger bearish continuation in the pair.
Support levels: 1.0220 1.0180 1.0150
Resistance levels: 1.0330 1.0370 1.0410