EUR/USD Current price: 1.1002
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Markets were all about the yen and the Aussie at the beginning of the day, with Japan unveiling a 28 trillion yen stimulus plan, and Australian trimmed inflation beating expectations, trimming chances of a soon-to-come rate cut in Australia. Europe released some minor data, among which, German CFK consumer confidence stood out, printing 10.0, against the 9.9 expected. Nevertheless, the EUR/USD pair remained confined to a tight 25 pips range ever since the day started, maintaining the bearish bias seen on previous updates.
Ahead of the US FED´s economic policy announcement, the dollar was marginally higher across the board, but turned lower after the release of poor US Durable Goods orders figures for June, down by 4.0% against a 1.1% drop expected. The core reading came in at -0.5%, from previous -0.3% and expectations of 0.3%. The 1 hour chart for the EUR/USD pair shows that the price is a few pips above its 20 and 100 SMAs, whilst the technical indicators turned higher around their mid-lines, in lacking enough momentum to confirm any directional move. In the 4 hours chart, the price is holding a few pips above a bearish 20 SMA, while the technical indicators remain around their mid-lines, also lacking directional strength.
Support levels: 1.0955 1.0910 1.0840
Resistance levels: 1.1000 1.1050 1.1090
GBP/USD Current price: 1.3106
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The GBP/USD pair hovers around the 1.3100 level, having erased most of the tepid gains posted on Tuesday. The release of the UK second quarter GDP failed to motivate investors, as it was mostly pre-Brexit data. Nevertheless, the figures surprised to the upside, with the economy growing by 0.6% in the three months to June, up also compared to a year before by 2.2%, against previous 2.0%. The pair is trading within 1.3071 an 1.3160, and with short term technical readings supporting a downward extension, given that in the 1 hour chart, the price is below a bearish 20 SMA, whilst the technical indicators head modestly lower within bearish territory. In the 4 hours chart, the price is a handful of pips below a horizontal 20 SMA, while the technical indicators keep hovering around their mid-lines, with no directional strength.
Support levels: 1.3070 1.3030 1.3000
Resistance levels: 1.3120 1.3175 1.3230
USD/JPY Current price: 105.62
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Wild swings on stimulus package. The USD/JPY pair saw some wild moves during the past Asian session, surging up to 106.53, on news that Abe was planning a 28T yen stimulus package, alongside with the emission of 50-year bonds. The Minister of Finance, Taro Aso, denied that they were considering such long term bonds, sending the pair down to 105.95, from where it then recovered back, after the amount of the stimulus package was confirmed. The pair however, stands below the 106.00 level ahead of the US opening, shedding some ground after the release of poor US Durable Goods Orders figures for June. Technically, the 1 hour chart shows that the price is struggling around a modestly bearish 100 SMA, whilst the technical indicators have turned lower within positive territory, having already corrected extreme overbought readings. In the 4 hours chart the pair extended its recovery after bouncing from its moving averages, while the technical indicators present modest bullish slopes, but are still below their mid-lines, not enough to confirm further gains for today.
Support levels: 104.60 104.20 103.70
Resistance levels: 106.10 106.60 107.00
AUD/USD Current price: 0.7476
View Live Chart for the AUD/USD
The Australian dollar surged to a daily high of 0.7565 against the greenback, following the release of much-better-than expected Q2 trimmed CPI, up by 1.7% against expectations of a 1.5% advance. However, the AUD/USD pair was unable to hold on to gains, plummeting to 0.7456 on a sudden dollar recovery after Japanese news, holding below the 0.7500 level ahead of US opening. The inability to retain the 0.7500 level, in spite of strong inflation data should be worrisome for long term bulls. Now bouncing on poor US data, the 1 hour chart retains a negative tone, as the 20 SMA heads lower above the current level, whilst the technical indicators head lower within bearish territory. In the 4 hours chart, technical indicators present a neutral stance, whilst the price remains below the 20 SMA and the 200 EMA, both flat in the 0.7490 region.
Support levels: 0.7450 0.7410 0.7330
Resistance levels: 0.7490 0.7530 0.7580
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