EUR/USD: stuck in range, heavy

EUR/USD Current price: 1.3319

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The EUR/USD refuses to move this Monday trapped in a 35 pips range since early Asian opening. Hovering around 1.3320, 23.6% retracement of the 1.3038/1.3403 rally, the pair lacks technical definitions both, in the 1 and 4 hours chart, as indicators in both time frame remain flat around their midlines. With the US closed on holidays, the only risk factor for today comes from ongoing EU finance ministers’ meeting, going on in Brussels. The meetings, that will continue this week, are meant to kick start the policies promised last year. However, they are not expected to made big announcements today. As for the short term the EUR/USD has been trading in between 1.3300 and 1.3335 with a slightly negative tone in the hourly chart: below 1.3290, the pair may attempt to revisit past week lows around 1.3255 while the upside seems well caped at the time being.

Support levels: 1.3290 1.3250 1.3220

Resistance levels: 1.3330 1.3350 1.3375 

GBP/USD Current price: 1.5867

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Pound maintains the heavy tone against the greenback, having been unable to reach 1.5900 before pulling back lower. Steadied around its 20 SMA in the hourly chart, technical readings show indicators barely positive yet flat, as lack of volume also keeps GBP/USD in a tight range. In the 4 hours chart,  indicators correct some of their oversold readings, but price remains well below a strongly bearish 20 SMA, which suggest there’s little room to go up. Key support remains to be the 1.5820 area, past November monthly low, and a stronger slide is expected if the level gives up.

Support levels: 1.5845 1.5820 1.5770 

Resistance levels: 1.5885 1.5915 1.5950 

USD/JPY Current price: 89.59

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The USD/JPY lost ground during Asian session, reaching a daily low of 89.32. The move came after one of Abe’s advisers warned about yen weakness could turn into a challenge for BOJ. A slow bounce from the mentioned low sees the pair stuck around 89.60, with short term time frames still holding a bearish bias, as momentum heads south below 100. However, strong buying interest on deeps remain intact: limited slides will offer buying opportunities, while a  move above 90.25 highs is needed to reassert upside pressure, with 92.50 still at sight for this week.

Support levels: 89.30 89.05 88.80

Resistance levels: 89.90 90.25 90.40 

AUD/USD: Current price: 1.0518

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Trading 10 pips above daily opening, the AUD/USD presents a neutral short term stance according to technical readings, although slightly bullish as the hourly chart shows price above 20 SMA and indicators in positive territory. In the 4 hours chart however, price is being capped by a bearish 20 SMA around 1.0520 immediate resistance level, while a bearish tone persists. Still, to confirm the downside, the pair needs to accelerate below 1.0490. 

Support levels: 1.0490 1.0450 1.0430

Resistance levels: 1.0520 1.0550 1.0580



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