EUR/USD: steady at lows, risking further declines

EUR/USD Current price: 1.0631

The dollar trades generally higher this Monday, despite an intraday decline against commodity currencies on the back of a sudden advance in oil prices. The EUR however, is unable to benefit from short term dollar declines, with the EUR/USD pair trading near a fresh 7-month low of 1.0599 posted at the beginning of the week. The macroeconomic figures released in Europe beat expectations, signaling some continued growth in the EU particularly in the services sector. Nevertheless, the pair met selling interest on advances towards 1.0650, the immediate resistance, and the 1 hour hart shows that the price is unable to settle above a bearish 20 SMA, whilst the technical indicators have bounced from oversold territory and continue advancing, but below their mid-lines. In the 4 hours chart, however, the bearish tone is clearer with the Momentum indicator heading sharply lower below its 100 level and the RSI indicator steady around 39.

Support levels: 1.0590 1.0550 1.0510

Resistance levels: 1.0650 1.0690 1.0730

GBP/USD Current price: 1.5138

View Live Chart for the GPB/USD

The GBP/USD pair fell down to 1.5124 on the back of dollar's demand, but has managed to bounce some, following a sharp recovery in oil prices, due to some comments coming from Saudi Arabia's producers, which are willing to do whatever it takes to stabilize the oil market. The GBP/USD 1 hour chart shows that the technical indicators are correcting from oversold territory, but remain deep in the red whilst the 20 SMA heads sharply lower above the current level, maintaining the risk towards the downside. In the 4 hours chart, a bearish tone prevails, as the price has fallen further below its 200 EMA, whilst the technical indicators lack directional strength near oversold levels.

Support levels: 1.5120 1.5085 1.5050

Resistance levels: 1.5160 1.5190 1.5220

USD/JPY Current price: 123.16

View Live Chart for the USD/JPY

The USD/JPY pair regained the 123.00 during the Asian session, and despite Japan banks were closed on holidays, limiting volatility at the beginning of the day. The pair however, has lost its upward strength and is currently consolidating around its 100 SMA in the 1 hour chart, where the technical indicators have turned slightly lower, but are still well above their mid-lines, far from suggesting a downward move. In the 4 hours chart, the Momentum indicator is aiming higher around its 100 level, whilst the RSI stands horizontal around 53, all of which limits chances of a bearish movement during the American session, although lacks enough strength to confirm an upward continuation.

Support levels: 123.05 122.60 122.20

Resistance levels: 123.40 123.75 124.10

AUD/USD Current price: 0.7176

View Live Chart for the AUD/USD

The Aussie was among the most affected by oil prices' decline during the Asian session, falling down to 0.7158 against the greenback. The AUD/USD pair bounced back towards the 0.7200 level on Saudi's authorities comments, yet selling interest surged around the 0.7200 level. Short term, the 1 hour chart shows that the price remains below a bearish 20 SMA, whilst the technical indicators have resumed their declines below their mid-lines, pointing for additional declines, particularly on a break below 0.7150, a strong static support. In the 4 hours chart, the technical indicators have erased all of their overbought readings and are about to cross their midlines towards the downside, whilst the price is hovering around a mild bullish 20 SMA, in line with the shorter term view.

Support levels: 0.7150 0.7110 0.7070

Resistance levels: 0.7200 0.7240 0.7285

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