EUR/USD Current price: 1.3064
Market was all about ECB this Thursday, with the EUR/USD holding pretty well around 1.3200 after a 0.25% rate cut and Draghi dovish statement. But when during the press conference he said that the Central Bank was “technically ready” to cut deposit rates to negative, the pair succumbed and fall as low as 1.3036 before bouncing slightly higher. While in the bigger picture, the pair maintains the range and trades in the 1.30/1.32 area, another failure at the high and the strong slide breaking below the Fibonacci level at 1.3115, increases chances of a break lower, again.
Far from the bottom of the range around 1.2970, the hourly chart shows a tight range, as investors are now waiting for the last major event of the week, US NFP figures on Friday. Expected around 146K after a disappointing 88K reading last month, a positive number may fuel dollar gains, as it will suggest QE may come to an end in the US this year. Another negative number will see the pair back nearing highs well into the 1.31 area. As for the short term, indicators remain in oversold territory, but the inability of price to recover, exposes the downside, with immediate support at 1.3040. Bears will lead now as long as price holds below mentioned 1.3115 level.
Support levels: 1.3040 1.3010 1.2970
Resistance levels: 1.3080 1.3115 1.3150
EUR/JPY Current price: 127.96
Will movements around early news ended up with the pair again stuck around 128.00. The hourly chart shows price below 100 SMA and indicators below their midlines, still favoring the downside in the short term. In the 4 hours chart technical readings remain flat, offering a neutral outlook, with 127.50, daily low now as key support ahead of the 126.00 area.
Support levels: 127.80 127.50 127.10
Resistance levels: 128.40 128.80 129.50
GBP/USD Current price: 1.5528
Pound suffered from dollar strength, easing against the greenback down to 1.5497, but finding some buying interest around. The hourly chart however has turned slightly bearish, with price now capped below 20 SMA and indicators heading lower below their midlines. In the 4 hours chart price stands right below its 20 SMA, while indicators turned flat in positive territory. Despite the daily fall, the pair is far from bearish, as only below 1.5420 bears will take control. However, a break above 1.5605 is now required to confirm a return of the upward trend.
Support levels: 1.5530 1.5490 1.5450
Resistance levels: 1.5580 1.5610 1.5650
USD/JPY Current price: 97.95
Having been as high as 98.38, the USD/JPY finally settle around the 98.00 level, maintaining a pretty positive stance despite the risk off environment. The hourly chart shows indicators retracing from overbought levels, but price steady in between 100 and 20 SMA’s, with the first offering dynamic support now around 97.20. In bigger time frames, the pair maintains the neutral stance seen on previous updates, with no clues on direction. US employment data may help the pair define a clearer trend with 97.20 and 98.40 as the extremes to break.
Support levels: 97.60 97.20 96.70
Resistance levels: 98.20 98.40 98.80