EUR/USD Current Price: 1.1027
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The US dollar traded steady against the euro and the pound on Thursday, receiving a mild, temporary boost on the back of better-than-expected US data. New orders for durable goods rose a seasonally adjusted 4.9% in January, beating expectations of a 2.9% increase while excluding transportation, orders grew by 1.8%, above the 0.2% rise of consensus. Separated data showed that even though initial jobless claims came in at 272,000 versus 270,000 expected, they have been below the 300,000 for almost a year, pointing to improvement in labor market. On Friday, US will release Q4 GDP revision, which is expected to show US economy expanded by 0.4%.
The dollar benefited briefly from data, dragging EUR/USD to a low of 1.0987 at the beginning of the New York session, only to give back gains afterward. Ending the day at the 1.1030 zone the short-term technical picture has turned slightly positive, as per indicators pointing higher above their mid-lines. However, the pair needs to regain the 1.1045/50 zone, where the 200-day SMA has been capping upside attempts over the last three days. On the other hand, a decisive break below the 1.0960/55 area, 61.8% retracement of the 1.0710/1.1376 rally and this week’s low, would put focus back on the downside, with the 1.0900 area as next bearish target
Support levels: 1.0960 1.0900 1.0880
Resistance levels: 1.1050 1.1090 1.1120
GBP/USD Current price: 1.3948
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The pound took a breather on Thursday following three days of sharp losses after UK scheduled an EU membership referendum for June 23rd. GBP/USD managed to move away a 7-year low of 1.3877 scored the previous day, as fears of a downward revision in the initial estimate of UK Q4 GDP did not materialize and stood at 0.5%. However, GBP/USD recovery lacked momentum and remained capped by the 1.4000 level. In the 1 hour chart, indicators head higher above their mid-lines reflecting today’s bounce while the pair trades slightly above the 20-SMA, suggesting room for further recovery. However, in the 4 hours charts indicators remain in negative territory and with the RSI having already corrected oversold conditions, limiting the upside potential. If GBP/USD breaks above 1.4000 it could extend the recovery to the 1.4080 zone, but the move will remain merely corrective as both technical and fundamental factors continue to favor the downside.
Support levels: 1.3877 1.3800 1.3700
Resistance levels: 1.4000 1.4080 1.4155
USD/JPY Current price: 112.92
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USD/JPY continued to recover from 2-week lows on Thursday as the dollar benefited from upbeat durable goods orders report, while broad JPY-weakness fueled the upside. The pair climbed to a high of 113.01 during the American session helped by the positive tone in stocks but failed to consolidate above the psychological level. From a technical perspective, indicators in 1 hour chart are heading higher above their mid-lines while spot hovers above a bullish 20-SMA, all of which suggests the pair might extend the bounce. Indicators in the 4 hours chart also favor a steeper recovery, with 113.50, 23.6% retracement of the 121.68/110.97 fall, as key level. A break above 113.50 will be a positive sign, confirming the double bottom at the 110.97/111.00 area.
Support levels: 111.90 110.97 110.10
Resistance levels: 113.05 113.50 114.15
AUD/USD Current price: 0.7241
View Live Chart for the AUD/USD
AUD/USD advanced on Thursday and reversed previous two day losses during the last couple of sessions, helped by stronger than expected Australian capex for fourth quarter 2015 and the positive tone in European and US stocks. The pair regained the 0.7200 level and climbed to a 2-day peak of 0.7242 before the Wall Street close. From a technical perspective, 1 hour chart shows indicators maintain their bullish slopes while spot trades above a bullish 20-SMA, suggesting further advances for Friday, although the RSI in overbought territory might limit gains. Bigger timeframes support the short-term view, with the 0.7260/70 zone as key resistance to overcome to signal resumption of the broader recovery from multi-year lows.
Support levels: 0.7150 0.7100 0.7070
Resistance levels: 0.7270 0.7300 0.7325
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