EUR/USD: saved by poor US data

EUR/USD Current Price: 1.1120

The EUD/USD pair fell down to 1.1071 during the European session, although quickly bounced back towards the 1.1100 region, where it held ahead of the release of US data. Equities fell in Asia and Europe during the first half of the day, but the common currency was unable to extend beyond the 1.1120 region against the greenback, the 23.6% retracement of the post-ECB rally. US data disappointed, with core retail sales declining by 0.1% in February, against a modest 0.1% advance expected. The PPI surged 1.2% yearly basis and fell by 0.2% compared to January, while core readings came out flat at 0.0%. The EUR/USD pair posted a modest advance after the news, still trapped within its latest range. The 1 hour chart however, suggests the pair may break above the mentioned resistance, as the price is currently recovering above its 20 SMA. The technical indicators in the mentioned time frame however, maintain a neutral stance. In the 4 hours chart, the technical indicators have turned higher, but are also stuck in neutral territory, lacking enough upward momentum to confirm a bullish breakout. Nevertheless, the downside will remain limited as long as the price holds above 1.1065, the 38.2% retracement of the mentioned rally.

Support levels: 1.1065 1.1020 1.0980

Resistance levels: 1.1120 1.1160 1.1200

GBP/USD Current price: 1.4299

View Live Chart for the GBP/USD

The Pound plummeted this Tuesday on renewed fears of a Brexit, fueled by news that voters supporting the Brexit are more willing to vote in the forthcoming referendum than those against it, giving a decisive edge to the final result. The GBP/USD pair fell down to 1.4146 before bouncing some ahead of US data, overall maintaining the negative tone, as short term, selling interest keeps surging on approaches to the 1.4180 region. Technically, the 1 hour chart shows that the price is now well below a sharply bearish 20 SMA, whilst the technical indicators have turned flat within oversold levels, rather reflecting the latest consolidation than suggesting the downside is exhausted. In the 4 hours chart, the price has accelerated lower after breaching the 200 EMA, while the technical indicators maintain their strong bearish slopes, all of which maintains the risk towards the downside.

Support levels: 1.4130 1.4090 1.4050

Resistance levels: 1.4185 1.4220 1.4260

USD/JPY Current price: 112.66

View Live Chart for the USD/JPY

Weighed by BOJ, poor US data. The Japanese yen strengthened at the beginning of the day, following the Bank of Japan economic policy announcement, in where the Central Bank maintained the status quo, but signaled the possibility of further easing and downgraded their outlook of the local economy. The pair accelerated further lower after the release of poor US retail sales figures for February, down by 0.1% compared to the previous month. The technical picture is clearly bearish in the short term, as in the 1 hour chart, the price accelerated its decline after breaking below the 100 and 200 SMAs, both around 113.45, whilst the technical indicators head sharply lower, despite being in oversold levels. In the 4 hours chart, the technical indicators also present a strong bearish momentum, although it would take a break below 112.10, the base of the latest range, to confirm a steeper decline towards the 111.00 region, the lows set last February.

Support levels: 112.10 111.70 111.25

Resistance levels: 113.00 113.50 113.90

AUD/USD Current price: 0.7452

View Live Chart for the AUD/USD

The AUD/USD pair has been under pressure ever since the day started, weighed by falling commodities rather than by Aussie weakness. During the Asian session, the Reserve Bank of Australia released the Minutes of its latest meeting, but gave no clues on upcoming economic policies, while maintaining the latest optimism over the local situation. The pair remains under pressure ahead of the US opening, having extended its decline down to 0.7443 so far today. The short term picture favors further declines, as in the 1 hour chart, the price is below a bearish 20 SMA, while the technical indicators have resumed their declines near oversold levels. The 4 hours chart also suggests a downward continuation, as the price is well below a now flat 20 SMA, while the technical indicators maintain bearish slopes within negative territory.

Support levels: 0.7430 0.7390 0.7345

Resistance levels: 0.7480 0.7530 0.7580

Share: Analysis feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.