EUR/USD: Dollar decline to extend in US session

EUR/USD Current price: 1.1359

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The dollar is under pressure this Tuesday, hit initially by SNB’s vice chairman Dantine, stating the Central Bank is ready to intervene in the FX market if required, and that their watching the franc against both, EUR and USD. The news triggered a quick depreciation of CHF crosses, lifting EUR/USD to a fresh weekly high circa 1.1340. US data released shortly afterwards showed Durable goods orders plunge 3.4% in December, and the core reading also disappointed printing -0.8%. Ahead of the opening, US indexes are sharply lower, with the DJIA almost 300 points down, with yields also near 2014 lows, all of which maintains the greenback in selling mode against most rivals. The EUR/USD pair holds to its intraday gains, trading near fresh daily highs at 1.1383, and with the 1 hour chart showing a mild positive tone as per price finding intraday support around its 20 SMA, and indicators are heading higher above their midlines. Furthermore, the pair holds above the 38.2% retracement of its post ECB QE announcement slide, immediate support at 1.1310. The 50% retracement of the same rally stands at 1.1365, and if the price advances again above it, chances are of an upward continuation towards the 1.1400 figure.

Support levels:  1.1310 1.1250 1.1200 

Resistance levels:  1.1365 1.1400 1.1440

GBP/USD Current price: 1.5192

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The GBP/USD pair maintains a strong positive tone, having been flirting with the 1.5100 level earlier on the day. Worse than expected UK GDP readings triggered a temporal kneejerk in the pair sending it down to 1.5054, from where it sharply bounced on the back of weak US data. The pair trades near the 1.5200 figure, and the 1 hour chart shows indicators heading strongly higher well into positive territory as the price advances above its 20 SMA. In the 4 hours chart the technical picture is also clearly bullish, with price having erased all of last Thursday’s losses. 

Support levels: 1.5170 1.5125 1.5080

Resistance levels:  1.5200 1.5240 1.5285

USD/JPY Current price: 117.50

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The USD/JPY trades back in the base of its latest range, having eased down to 117.33 early US session, and maintaining a strong bearish tone in the short term, as per the price holding below its moving averages and indicators heading south well into negative territory. The 4 hours chart shows indicators also biased lower, albeit near their midlines, presenting a more neutral stance as the pair has traded between 117.00 and 118.80 for a week already. A break below any of both extremes is required to set some directional strength, with the downside favored towards 116.60 on a break below 117.00

Support levels:  117.30 117.00 116.60

Resistance levels: 117.60 118.00 118.40

AUD/USD Current price: 0.7956

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The AUD/USD pair trades in positive territory albeit with limited intraday gains, supported by dollar weakness rather than Aussie self strength. The 1 hour chart shows that the price holds above a mild bullish 20 SMA although indicators are flat in neutral territory, showing no directional strength. In the 4 hours chart indicators are losing their upward strength right below their midlines, further limiting advances, as price struggles around a strongly bearish 20 SMA. Some follow through above critical long term resistance at 0.7965 should favor a test of the 0.8000 level, albeit failure at the level will maintain the pair in the bearish track.

Support levels: 0.7930 0.7900 0.7860 

Resistance levels: 0.7965 0.8000 0.8040