EUR/USD: selling interest strong on spikes

EUR/USD Current price: 1.0665

Majors are having a hard time to find some direction, and even to attract speculative interest this Wednesday, trading in tight ranges near Tuesday's closes. The EUR/USD pair managed to bounce some from the multi-month low set at 1.0630 as European stocks opened lower but the rally stalled at 1.0691, where selling interest quickly rejected the advance. Investors are waiting for the FOMC Minutes of the latest meeting, to be released in the American afternoon. In the meantime, the 1 hour chart shows that the price is above its 20 SMA, whilst the technical indicators aim slightly higher above their mid-lines, in line with some further advances. In the 4 hours chart, however, the price remains below a bearish 20 SMA, while the technical indicators turned lower in negative territory after correcting oversold readings, maintaining the risk towards the downside.

Support levels: 1.0630 1.0590 1.0550

Resistance levels: 1.0690 1.0720 1.0750

GBP/USD Current price: 1.5210

View Live Chart for the GPB/USD

The British Pound enjoyed some limited demand, advancing against the greenback up to 1.5248 following BOE's member Broadbent comments who said that the Central Bank´s inflation forecast is not as relevant as the economic behavior when it comes to determinate when to rise rates. The pair however, returned to its comfort zone around 1.5210 where it's actually waiting for a clearer trigger. The intraday charts maintain the neutral stance seen ever since the week started, with the price stuck around a horizontal 20 SMA, and the technical indicators heading nowhere around their mid-lines. In the 4 hours chart, the technical readings also remain neutral, with only a clear break above 1.5265, favoring additional gains for this Wednesday.

Support levels: 1.5160 1.5120 1.5070

Resistance levels: 1.5265 1.5320 1.5355

USD/JPY Current price: 123.46

View Live Chart for the USD/JPY

The dollar advances against the Japanese yen ahead of the US opening, as speculation that the FED will finally raise rates in December maintains the pair bid. Holding near its highs, the pair is still 10 pips shy of the monthly high posted at 123.59 earlier this month, and will take a break above it to confirm a more sustainable bullish run. In the meantime, the technical picture favors the upside, as in the 1 hour chart, the moving averages have accelerated higher below the current levels, although the 200 SMA is crossing above the 100 SMA, implying a decreasing upward momentum. In the same chart, the technical indicators aim slightly higher above their mid-lines, not yet confirming further advances. In the 4 hours chart, the Momentum indicator has turned lower near overbought territory, but the RSI indicator heads higher around 63, limiting chances of a downward move, at least from a technical perspective.

Support levels: 123.20 122.80 122.30

Resistance levels: 123.60 123.95 124.40

AUD/USD Current price: 0.7098

View Live Chart for the AUD/USD

The Australian dollar weakens against the greenback ahead of the US opening, with the pair struggling to hold gains above the 0.7100 level. Commodity-related currencies are having a hard time this Wednesday, with cooper plummeting to fresh multi-year lows, and generally weaker metals. As for the AUD/USD pair, the 1 hour chart shows that a bearish 20 SMA has contained the upside earlier today, and that the technical indicators have turned south below their mid-lines, in line with further declines. In the 4 hours chart, the technical readings also favor the downside, although a break below 0.7070 is required to confirm further intraday declines.

Support levels: 0.7070 0.7030 0.6990

Resistance levels: 0.7150 0.7190 0.7240

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