EUR/USD Current Price: 1.1405
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The EUR/USD pair held within its latest range in a lackluster start to the week, due to the absence of European and American macroeconomic data, which left traders clueless all through the day. During the Asian session, risk aversion led the way, favoring the most the JPY, as Chinese March inflation fell by 0.4%, while recording a softer-than-expected 2.3% compared to a year before. The Producer Price index, however, offered an upward surprise, as it fell less than expected, printing -4.3% year-on-year against previous 4.9%. But sentiment turned positive during the European morning, as local share markets opened with a strong footing to finally close in the green.
The common currency advanced up to 1.1447 against its American rival, but the pair was again rejected by selling interest around the 1.1460 region, a strong static resistance area. The short term picture is neutral, as the pair has been stuck between 1.1330 and 1.1460 for over a week now, but the longer term perspective still favors the upside. In the 4 hours chart, the pair is slightly above a horizontal 20 SMA, whilst the technical indicators have lost upward strength after entering positive territory, with no actual directional strength. Stop beyond the mentioned 1.1460 critical resistance are suspected to be large, which means that if they got triggered, the pair can rally up to 1.1500 beyond.
Support levels: 1.1370 1.1330 1.1280
Resistance levels: 1.1420 1.1460 1.1500
EUR/JPY Current price: 123.18
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The EUR/JPY pair ends the day around Friday's close, a handful of pips above the 123.00 level. The Japanese yen was buoyed during the Asian session, but the decline in the pair was limited to 122.82, as the EUR is lately responding as a safe-haven currency when risk aversion takes over the financial world. The 1 hour chart presents a neutral-to-bearish stance ahead of the Asian opening, as the technical indicators have turned slightly lower around their mid-lines, whilst the 100 SMA has accelerated its decline above the current level, now offering a strong dynamic resistance around 124.10. In the 4 hours chart, the RSI indicator has corrected oversold readings, but remains weak around 33, while the Momentum indicator lost its upward strength around its 100 level. Overall, the risk remains towards the downside, with a break below 122.50, Friday's low, required to confirm additional declines towards fresh year lows below the 122.00 level.
Support levels: 123.00 122.50 122.00
Resistance levels: 123.65 124.10 124.45
GBP/USD Current price: 1.4239
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The British Pound enjoyed of some strong demand after London's opening, tracking local share markets' positive opening, and the GBP/USD pair advanced up to 1.4285, erasing all of the previous week losses. The UK will release its CPI and PPI figures early Tuesday, generally expected to have improved in March, compared to the previous month. An uptick in inflation indeed can help the pair to recover further, as Pound's latest decline, blamed on Brexit fears, seems to be overstretched, considering the dollar's underlying negative tone. The pair retreated partially from the mentioned high, overbought in the short term after adding around 180 pips daily basis. The technical picture however, keeps favoring the upside, as in the 1 hour chart, the technical indicators are resuming their advances well into positive territory and after correcting extreme readings. In the 4 hours chart, the price is currently above a horizontal 20 SMA, while the 20 SMA is gaining bullish strength in the 1.4120 region, not enough to suggest a stepper recovery. In the same chart, the technical indicators have turned south within positive territory, but hold far above their mid-lines, suggesting the pair may enter a consolidative phase, and even retreat some, before attempting a new upward move.
Support levels: 1.4190 1.4150 1.4100
Resistance levels: 1.4285 1.4330 1.4370
USD/JPY Current price: 107.97
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The Japanese yen extended its advance to a fresh multi-month high against its American rival, with the USD/JPY bouncing from 107.62, after BOJ's Governor Kuroda said that the Central Bank is monitoring exchange levels, and that they will add further stimulus without hesitation if needed. The intraday recovery in the pair reached 108.43 in the American afternoon, but it retreated back below the 108.00 figure, where it stands ahead of the Asian opening. Overall, the downside remains favored, both short and long term, given broad dollar's weakness and limited expectations of a US rate hike. In the 1 hour chart, the technical indicators have corrected oversold readings whilst the price remained range bound, a clear sign that bears are still in the driver's seat. In the same chart, the 100 SMA heads sharply lower around 109.00, offering a strong dynamic resistance in the case of a sudden recovery. In the 4 hours chart, the Momentum indicator presents a strong upward slope around its 100 level, whilst the RSI indicator keeps hovering around 32, but only an extension beyond the mentioned 109.00 region will offer a more upward constructive outlook for the pair.
Support levels: 107.65 107.30 106.90
Resistance levels: 108.45 109.90 109.35
AUD/USD Current price: 0.7608
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Slowly but steadily, the AUD/USD ground higher this Monday, underpinned by the positive tone in European and American equities, and further recoveries in oil's prices. Australia will release its March NAB Business confidence and current conditions indexes during the upcoming Asian session, while more data will be out from China, all of which can give the pair a lift on positive surprises. The pair is up for second day in-a-row, after testing once again the 0.7500 region late last week the 23.6% retracement of this year bullish run. Still at risk of correcting lower, given the inability of the pair to advance beyond the 0.7700 level, the pair presents a mild positive tone in the short term, as in the 1 hour chart, the price is well above a bullish 20 SA, whilst the technical indicators have lost their upward strength, and consolidate within positive territory. In the 4 hours chart, the 20 SMA offers an intraday support around 0.7560, while the technical indicators are losing upward steam and turning slightly lower within positive territory. At this point the pair needs to settle at least above 0.7640, to be able to advance further this Tuesday, back towards its year highs in the 0.7700 region.
Support levels: 0.7560 0.7520 0.7470
Resistance levels: 0.7640 9.7690 0.7735
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