EUR/USD Current price: 1.1017
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Monday is seeing limited action in the forex board, with the EUR/USD pair confined to a 1.1000/50 range ever since the day started. The American dollar is under some pressure, correcting part of its latest gains, albeit both, the EUR and the CHF remain under pressure, with the Swissy at multi-month lows against its American counterpart, weighing on the EUR. Sentiment in Germany remains weak according to the latest IFO Survey, particularly when it comes to assessing the current situation which resulted at 112.6 against previous 113.5.
The EUR/USD pair retreated from a daily high set at 1.1055, and trades flat around Friday's close, presenting a short term bearish tone, given that the 1 hour chart shows that the price is hovering around a mild bearish 20 SMA, whilst the technical indicators have turned south after correcting oversold readings. In the 4 hours chart, the Momentum indicator aims higher, but the RSI indicator has resumed its downward strength, both in extreme oversold territory, whilst the 20 SMA maintains a sharp bearish slope in the 1.1150 price zone. The 1.1000 level is quite a strong psychological support, yet a break below it should trigger stops, and open the doors for a continued decline down to 1.0840 for the upcoming sessions.
Support levels: 1.1000 1.0960 1.0920
Resistance levels: 1.1050 1.1080 1.1120
GBP/USD Current price: 1.5343
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The GBP/USD pair is trading slightly higher in the day, but showing little directional strength at the time being. News coming from the UK showed that mortgage approvals for house purchase fell to 44,489 in September from 46,567 in August, but were 14% up from the same time a year ago, according to the British Bankers' Association, hardly affecting the pair. Technically, the 1 hour chart shows that the price is above a horizontal 20 SMA, currently a 1.5320, whilst the technical indicators stand flat above their mid-lines. In the 4 hours chart, the bearish tone prevails given that the pair is well below a bearish 20 SMA and the 200 EMA, whilst the technical indicators head south below their mid-lines. The pair has flirted with the 1.5300 level last Friday, and the figure is now the immediate support, with a break below it exposing the pair to a quick decline down to the 1.5250/60 price zone, a strong midterm support.
Support levels: 1.5300 1.5250 1.5210
Resistance levels: 1.5370 1.5415 1.5450
USD/JPY Current price: 120.95
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Buying the dips. The USD/JPY pair retreated from the highs set late last week at 121.47, weighed by comments made by PM Abe's adviser Hamada. He said that there's no need for the BOJ to ease, as long as market expectations for a FED rate hike keep the yen weak. Investors have been pricing in additional stimulus in Japan given that inflation remains subdue, and the news forced some profit taking, albeit the pair remains near its recent highs ahead of the Central Bank meeting. Also, the pair has been steadily rising for the past two weeks, and the movement can be considered corrective, with a critical support at 120.35, as the downside will remain well limited as long as the price remains above it. The short term picture is bearish, as despite the price is well above its moving averages, the technical indicators head lower below their mid-lines in the 1 hour chart. An early dip has met buying interest around 120.77, so a break below it can lead to a test of the mentioned 120.35. In the 4 hours chart, the technical indicators are retreating partially from extreme oversold territory, but are far from suggesting a deeper downward movement at the time being.
Support levels: 121.75 121.35 121.00
Resistance levels: 121.05 121.40 121.85
AUD/USD Current price: 0.7255
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The AUD/USD pair advances this Monday, up to 0.7266 so far today and holding nearby ahead of the US opening. The pair is receiving some support from commodities, which are posting tepid bounces after Friday's losses. The short term technical picture is positive, as in the 1 hour chart, the price is above a mild-bullish 20 SMA, whilst the Momentum indicator lacks directional strength above the 100 level and the RSI indicator heads higher around 57. In the 4 hours chart, the technical stance is neutral, with the price above a flat 20 SMA, and the technical indicators going nowhere above their mid-lines. The pair has a strong static support at 0.7240, and it will take a clear break below it to confirm a short term reversal.
Support levels: 0.7240 0.7190 0.7150
Resistance levels: 0.7290 0.7335 0.7330
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