EUR strong, AUD lags, GBP lags even further

EUR/USD Current price: 1.3372

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Main event this Thursday, was US housing and employment data showing strong signs of improvement. And those are not minor events: the crisis that started back in 2007 there, and the following recovery, was 100% dependant on both sectors of the economy. In fact, both housing and employments are the reason of QE and low rates in the US. Continued improvement in both, will ultimately be translated in dollar strength, yet for now, is only feeding risk appetite: American indexes closed at 5 years highs, helping drove the greenback and the yen lower against most rivals. True, politicians have been coming and going with statements, with European ones fighting on whether the euro should be strong (or not), and US ones jawboning about the convenience of QE (or not). However, market is now being lead by risk sentiment, and positive news will likely continue boosting high yielders. For the short term, the EUR/USD hourly chart shows indicators still heading higher in positive territory, as price consolidates near daily high set at 1.3370. As long as above 1.3320 area now, the upside continues to be favored, with a break above 1.3410 signaling and advance towards 1.3485, 2012 high.

Support levels: 1.3350 1.3320 1.3290 

Resistance levels: 1.3410 1.3440 1.3480

GBP/USD Current price: 1.5963

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Pound continues to be the main laggard trading below the 1.6000 mark and having reached 1.5954 against the greenback, early US session. The GBP/USD trades around the 1.5990 mark, and still looking heavy in the 4 hours chart, with price limited by a strongly bearish 20 SMA currently around 1.6010. For the short term, the hourly chart maintains a more neutral stance, with indicators around their midlines and 20 SMA flat. Still unless a clear recovery above 1.6020/30 price zone, the upside will likely remain limited.

Support levels: 1.5950 1.5920 1.5880

Resistance levels: 1.5990 1.6020 1.6060 

USD/JPY Current price: 89.90

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The USD/JPY skyrocketed after positive US data and soaring stocks, breaking above 90.00 and reaching 90.13 before pulling slightly lower. The unstoppable bullish upward momentum will now find short term support around 89.65 former high, and despite extreme overbought readings in the hourly chart, there’s little scope for falls. Both, 4 hours chart and daily one show that indicators corrected extreme overbought readings only to accelerate north. Sustained gains above 90.00 will expose the 92.50 level, next big target for the pair. 

Support levels: 89.65 80.30 89.00

Resistance levels: 90.10 90.40 90.75

AUD/USD: Current price: 1.0542

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Negative Australian employment readings past Asian session, sent AUD/USD as low as 1.0490, the base of these last days range, from where the pair slowly grinded higher. The hourly chart shows that despite a nice bullish tone coming from technical readings, price is unable to clearly extend beyond the 1.0550 area, immediate resistance level. In the 4 hours chart, technical readings remain neutral, giving not much clues on next move.

Support levels: 1.0520 1.0490 1.0450

Resistance levels: 1.0550 1.0580 1.0600 


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