EUR/USD: correcting in thin trade

EUR/USD Current price: 1.0806

The EUR/USD pair fell down to 1.0795 in the European session, but holds above the 1.0800 level ahead of the US opening. The pair fell with the European opening, as stocks opened sharply higher, whilst German Industrial Production missed expectations, rising by 0.2% in October, against a 0.7% advance. The lack of volume however is quite strong across the board, and the pair trades in a tight range, with a mild negative tone in the short term, as the in the 1 hour chart, the price is well below a bearish 20 SMA, whilst the technical indicators head south below their mid-lines. In the 4 hours chart, the decline has stalled a couple of pips above a still bullish 20 SMA, while the technical indicators have corrected their extreme overbought readings, and are currently turning higher well above their mid-lines, limiting chances of a stronger decline as long as 1.0790 holds. A recovery above 1.0835 is now required to see the pair maintaining its bullish tone and attempting a retest of the 1.0900 region.

Support levels: 1.0790 1.0740 1.0700

Resistance levels: 1.0835 1.0880 1.0910

GBP/USD Current price: 1.5061

View Live Chart for the GPB/USD

The GBP/USD pair trades near a daily low set at 1.5053, with the European opening, having then met selling interest on attempts to advance beyond the 1.5100 level. There were no macroeconomic news in the UK, but will release some manufacturing and industrial data this Tuesday, expected to have advanced some during October. In the meantime, the short term technical picture is bearish, as in the 1 hour chart, the price is below a bearish 20 SMA, whilst the technical indicators head slightly lower below their mid-lines. In the 4 hours chart, the price holds a few pips above its 20 SMA, while the technical indicators have turned flat well above their mid-lines, limiting the downside.

Support levels: 1.5050 1.5020 1.4980

Resistance levels: 1.5125 1.5160 1.5190

USD/JPY Current price: 123.44

View Live Chart for the USD/JPY

Upside limited. The USD/JPY pair has gathered some momentum at the beginning of the day, extending up to 123.47 with dollar's strength. The pair has been trading between 122.20 and 123.75 since early September, and seems the range will remain in place for one more day, given the thin market conditions of this Monday. The short term picture is, however, mild bullish as in the 1 hour chart, as the price is holding well above its 100 and 200 SMAs, while the technical indicators are consolidating in positive territory, closed to overbought levels. In the 4 hours chart, however, the technical outlook is neutral, with the Momentum indicator stuck around its 100 level and the RSI also flat around 59.

Support levels: 123.00 122.60 122.20

Resistance levels: 123.75 124.10 124.50

AUD/USD Current price: 0.7274

View Live Chart for the AUD/USD

The AUD/USD pair accelerates its decline after triggering stops below the 0.7300 level, probably the most clearly bearish pair ahead of the US opening. Commodity currencies are under strong selling pressure, and the AUD/USD pair will face a critical support at 0.7240, as far declines below it could lead to a stronger decline during this Tuesday. Technically, the 1 hour chart shows that the price has accelerated below a bearish 20 SMA, whilst the technical indicators maintain their bearish slopes, despite being near oversold levels. In the 4 hours chart, the technical picture is also bearish, as the technical indicators head sharply lower below their mid-lines, whilst the price accelerated below its 20 SMA.

Support levels: 0.7240 0.7200 0.7165

Resistance levels: 0.7290 0.7335 0.7370

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