EUR/USD Current price: 1.1198
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The EUR/USD pair fell sharply on Thursday as the dollar staged a rally across the board following a batch of mixed US data. Even though January US consumer prices declined more than expected, core figures beat expectations rising by 0.2% MoM and 1.6% YoY. Meanwhile, durable goods orders bounced strongly in January after 2 months of falls, rising 2.8% versus 1.7% expected. On the other hand, initial jobless claims rose to 313,000 last week versus 290,000 of consensus.
From a technical perspective, daily indicators have turned neutral as spot trades below a flat 20 SMA. In the 4-hour charts, the pictures has turned bearish although, with the RSI signaling oversold conditions, EUR/USD might take a breather before another push lower. The pair needs to at least regain the 1.1270 area (former support zone) to ease the short-term pressure.
Support levels: 1.1183 1.1130 1.1097
Resistance levels: 1.1270 1.1355 1.1379
GBP/USD Current price: 1.5409
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The GBP/USD pair also suffered on the back of a stronger dollar, surrendering most of its weekly gains. GBP/USD pulled back sharply from an 8-week high of 1.5551 high scored during the European session and briefly dropped below the 1.5400 level. Daily charts hold the bullish tone despite today’s setback, although indicators have lost strength. In the 4-hour chart, both the Momentum indicator and the RSI have crossed their midlines to the downside turning short-term focus to the downside. A decisive break below 1.5400 could send the pair to 1.5330/10, which is next support area. On the flip side, Cable needs climb back above 1.5475 to regain short-term bullish strength.
Support levels: 1.5330 1.5310 1.5240
Resistance levels: 1.5475 1.5500 1.5551
USD/JPY Current price: 119.36
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USD/JPY rose sharply and reached a 2-day high of 119.50 during the New York session, supported by US economic data. Technical speaking, indicators have turned flat in the daily chart, following big swings this week, triggered by Fed’s Chairwoman Janet Yellen testimony. In the 4-hour chart, the bias is positive, suggesting a rise toward 119.85, this week’s high, en-route to 120.00 shouldn’t be ruled out. On the downside, the 118.25 area is key support with a break below this latter, targeting February’s low at 116.85.
Support levels: 118.25 118.00 116.85
Resistance levels: 119.50 119.85 120.00
AUD/USD Current price: 0.7795
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The AUD/USD gave up its daily gains to print a sizeable bearish outside day after an abrupt reversal off 0.7910, suggesting a potential change of the recent corrective bullish dynamics seen over the last 2 weeks. While weaker-than-expected Australian capex numbers initially led the pair to dip towards sub 0.7850 in the last Asian session, leveraged names emerged in early London seeking higher liquidity, fading the bear-induced capex move, however, a major surprise in US real wage growth saw USD strengthen across the board as odds of a Fed rate 'liftoff' mid this year firmed up. On the hourly chart, the 1.2 cents drop has distorted bullish technicals, with price breaking back down the 100 and 200-EMA, with focus now shifted towards lower quotes, expecting rallies to be seen as sell value propositions as long as 0.7850/60 resistance holds. On the 4-hour chart, price was strongly rejected by the 200-EMA, with bears also reclaiming the 100 and 20 EMAs, implying that at the bare minimum, a period of consolidation with potential lower levels are expected, although losses will only accelerate should price break below an ascending trendline coming off this year's low.
Support levels: 0.7775 0.7750 0.7700
Resistance levels: 0.7840 0.7860 0.7900
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