EUR/USD Current price: 1.3621
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A couple things outstood in markets on Monday, and they were not certainly currency related: stocks edged higher in Europe and the US, with DJIA at fresh all time highs and gold nosedived near $1300/oz, on the back of easing concerns over Portugal banking woes. However, problems are not over in that front, as on Tuesday, $1 billion lent to troubled Espirito Santo group should be repair. If not, default will sound loud, yet not as loud as risk aversion across the boards.
As for the EUR/USD early positive sentiment help the pair reach a daily high of 1.3640, but lack of self strength push the common currency back down against its American rival. In the short term, the pair continues to lack direction with the hourly chart showing price hovering around 20, 100 and 200 SMAs all together at current price zone, a clear reflection of the absence of trend. In the 4 hours chart the picture repeats, with moving averages in a 20 pips range also around current levels. The immediate range is 1.3570/1.3650 and unless a clear break of any of such extremes, the pair will hardly see any directional move over the upcoming days.
Support levels: 1.3570 1.3530 1.3500
Resistance levels: 1.3650 1.3680 1.3725
EUR/JPY Current price: 138.32
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Yen gave back most of the ground added late past week as stocks advanced: all American indexes advanced strongly albeit Dow Jones fresh high took center stage, helping EUR/JPY returning 138.40 price zone. The pair however, halted around the strong static resistance, and the hourly chart shows price was also rejected from its 200 SMA, while indicators correct their overbought readings. In the 4 hours chart however, technical readings maintain the positive tone, with a break above mentioned resistance probably signaling a continuation towards 138.90 price zone.
Support levels: 137.90 137.50 137.00
Resistance levels: 138.40 138.90 139.35
GBP/USD Current price: 1.7077
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The GBP/USD tripped stops below 1.7095 with little behind, extending down to 1.7068 on the day. Having bounced some, the overall tone is still bearish in the short term, as per 20 SMA presenting a strong bearish slope above current price while indicators turn flat in oversold levels, far from suggesting an upward correction. In the 4 hours chart a mild bearish tone is also present, although a break below 1.7060, 23.6% retracement of the latest bullish run, is required to confirm a downward continuation.
Support levels: 1.7060 1.7020 1.6990
Resistance levels: 1.7095 1.7150 1.7180
USD/JPY Current price: 101.57
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The USD/JPY advanced on yen weakness, with the pair stalling at 101.60 strong static resistance zone. Consolidating right below early Asia, the BOJ will have an economic policy statement with a press conference included, which may bring some action to the pair, albeit chances are limited as no news are expected there. Technically, the short term picture shows indicators losing upward strength in positive territory, with 100 SMA now offering some intraday support around 101.40. In the 4 hours chart however, the pair presents a strong upward momentum, which supports an upward continuation in the pair on a break above mentioned resistance.
Support levels: 101.40 101.20 100.70
Resistance levels: 101.60 101.95 102.35
AUD/USD Current price: 0.9390
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With no changes, the AUD/USD stands right below the 0.9400 figure, having shown little progress all through the day, confined to a tight 30 pips range. Technical readings in the hourly chart are neutral, with moving averages horizontal right above current price, reflecting the lack of direction in the pair, while the 4 hours chart shows a slightly bullish tone coming from indicators, still quite weak. As commented on previous updates, either a break above 0.9420 or below 0.9370 is required to set a more directional move in the pair.
Support levels: 0.9370 0.9330 0.9300
Resistance levels: 0.9420 0.9460 0.9500
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