EUR/USD Current price: 1.3066
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The EUR/USD closed in red for second day in a row, setting a daily low this Wednesday at 1.3036, but managed to recover some ground amid improving stocks: US indexes posted some gains mid American afternoon. The pair however, was choppy, as market players await the ECB meeting next European morning: talks of a rate cut, and even moving deposits rates below 0.00% have been around since last meeting and those are the main focus of the upcoming meeting. In the meantime, the hourly chart shows price still caped below 20 SMA and the 23.6% retracement of its latest daily fall, both around 1.3070 and immediate resistance level, while indicators hover in neutral territory. Despite the lack of follow through the downside continues to be exposed in the short term, as long as price holds below 1.3110, 38.2% retracement of the same rally.
Support levels: 1.3040 1.3000 1.2950
Resistance levels: 1.3070 1.3110 1.3145
GBP/USD Current price: 1.6020
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The GBP/USD tested 1.5990 static support, bouncing then from the strong area, yet unable to change the short term bearish tone according to the hourly chart: indicators head in negative territory, while 20 SMA offers dynamic resistance right above current price. In the 4 hours chart, the bearish tone gains momentum, while lower low daily basis also support the downside. The pair however, needs to clearly breach mentioned support to confirm more slides today.
Support levels: 1.5990 1.5940 1.5900
Resistance levels: 1.6025 1.6065 1.6100
USD/JPY Current price: 87.88
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The USD/JPY recovery from 87.03 weekly low extended up to 88.00 where the pair halted its run. Trading a few pips below, the hourly chart presents a strong upward momentum with price back above 200 and 100 SMA’s, and bigger time frames showing extreme overbought readings already corrected, and heading back north. Above 88.40, the pair may extend its run towards the 89.30 area, next big midterm resistance level. Once above and in the long ride, there’s not much up to 92.50 area.
Support levels: 87.40 87.05 86.80
Resistance levels: 87.90 88.40 88.80
AUD/USD: Current price: 1.0509
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Aussie continues its’ slow advance, having reached a high at 1.0533 during the US session. Despite the neutral stance seen in hourly indicators, the pair presents a bullish tone, lead by a short term ascendant trend line coming from 1.0468 Friday low. With Australian building approvals and Chinese trade balance, the pair won’t lack action over current session: watch for 1.0525 area to the upside and 1.0490 to the downside, to offer some follow through if broken. Still bearish movement will more likely be buying opportunities.
Support levels: 1.0490 1.0460 1.0430
Resistance levels: 1.0525 1.0550 1.0600
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