EUR/USD: dollar gains with US QE end talks

EUR/USD Current price: 1.3047

The EUR/USD lost over 150 pips this Thursday, as what started as a dollar correction due to some profit taking ended up being dollar strength. Early US ADP readings above expectations triggered some optimism in the US, while later FOMC Minutes, showing some of the 12 voting members felt that bond purchases should be slowed or stopped altogether before the end of 2013. Stocks managed to close with gains, although far from daily highs, while gold felt the heat, giving up strongly towards current $ 1660/oz area. And with US NFP data to be release next Friday US session, the EUR/USD trades at daily lows with a strong short term bearish tone: the hourly chart shows price well below its 20 SMA while indicators hold in negative territory, nearing oversold levels. In the 4 hours chart the bearish momentum turned stronger with latest fall, as price tests strong static support in the 1.3040 area. Usually a slow session ahead of employment data, current Asian one could see further dollar gains if the pair breaks below the psychological 1.3000 mark.

Support levels: 1.3040 1.3000 1.2970

Resistance levels: 1.3080 1.3110 1.3145

GBP/USD Current price: 1.6098

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Pound was dragged lower against the greenback by market sentiment, struggling now around 1.6100. Despite the hourly chart shows indicators in oversold territory, price continues pushing lower, which suggests the pair is not yet ready for a recovery. In the 4 hours chart, technical readings head strongly south, supporting a test of key 1.6065 static support level that will be key for the latest bullish trend, as a break below will expose the 1.5940 area for the upcoming sessions. The upside now is limited by 1.6140 static resistance level, and unless a clear recovery above, further falls are to be expected.

Support levels: 1.6065 1.6025 1.5985

Resistance levels: 1.6140 1.6175 1.6220

USD/JPY Current price: 87.31

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A temporal kneejerk in USD/JPY so the pair falling to 86.76, yet investors quickly jumped to buy the pair, that trades again near recent highs of 87.34. The hourly chart shows a shy upward tone coming from indicators, yet the lack of momentum is far from signaling a top: the pair has room to continue advancing, although lower volumes ahead of the US employment figures may see a slow advance today. In bigger time frames and despite overbought, technical readings are still heading north, supporting the bullish bias of the pair.

Support levels: 87.05 86.80 86.50 86.25

Resistance levels: 87.60 87.95 88.15

AUD/USD: Current price: 1.0465

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Aussie stalled again in the 1.0525 region against the greenback, losing ground with stocks fall and gold slide during past American session. The hourly chart shows an increasing bearish momentum, although the bigger picture shows the upward tone remains pretty much intact: current bearish run could be understand as corrective, up to 1.0330 support area. For the short term, price struggles around 1.0470 static level, and seems ready for a test of 1.0400 where first line of strong buying is aligned.

Support levels: 1.0440 1.0400 1.0370

Resistance levels: 1.0490 1.0525 1.0550