EUR/USD Current price: 1.0934
View Live Chart for the EUR/USD
The American dollar trades higher ahead of the FED's latest meeting outcome, advancing mostly on sentiment rather than anything else. The pair traded as low as 1.0911 and recovered a handful of pips above the level, with the greenback holding into gains after the release of solid housing data. According to official data, new-home construction climbed 10.5% in November, to a 1.17 million annualized rate. The EUR/USD 1 hour chart shows that the price is currently struggling around the 20 SMA, which stands flat and converges with the 200 SMA, while the technical indicators aim slightly higher around their mid-lines. In the 4 hours chart, the price is below its 20 SMA, while the technical indicators hold horizontal below their mid-lines, maintaining the risk towards the downside. Nevertheless, whatever Yellen decides is what's going to determinate the pair's upcoming moves; a rate hike may have been already priced in, but that does not implies the dollar can't run. Overall, it's the market belief that what will decide the future of the greenback is any announcement regarding future movements.
Support levels: 1.0910 1.0880 1.0830
Resistance levels: 1.0950 1.0990 1.1045
GBP/USD Current price: 1.5032
View Live Chart for the GPB/USD
The GBP/USD pair is recovering ahead of the US opening, recovering from the daily low of 1.4981, reached after the release of the UK employment figures, showing a strong setback in wages. Wage growth excluding bonuses fell to 2.0% from 2.4%YoY while including bonuses fell to 2.4% from a previous 3.0% also YoY. The number of people filing for unemployment rose more than expected, although the unemployment rate fell to 5.2%. The 1 hour chart shows that dips below the 1.5000 figure are resulting in quick bounces, as short term buying interest surges, but that the general tone is still bearish for the pair, given that it holds below a bearish 20 SMA, while the technical indicators remain in negative territory. In the 4 hours chart, the bearish tone is even clearer, given that the pair is below a bearish 20 SMA, while the technical indicators maintain their strong bearish slopes below their mid-lines.
Support levels: 1.4980 1.4940 1.4890
Resistance levels: 1.5050 1.5090 1.5135
USD/JPY Current price: 121.90
View Live Chart for the USD/JPY
Nearing critical resistance at 122.20. The USD/JPY pair flirts with the 122.00 level this Wednesday, having extended its rally during the Asian session on hopes the US will raise rates and therefore favor some dollar demand. Despite the upcoming directional move will depend solely on how the market reacts to the FED, the technical picture is mildly positive in the short term, as in the 1 hour chart, the price extended further above its 100 SMA, and pressures the 200 SMA around the mentioned 122.00 figure. In the same chart however, the technical indicators have lost their upward strength and turned lower above their mid-lines. In the 4 hours chart, the price remains below its moving average, while the technical indicators lack directional strength, well above their mid-lines. The level to watch to confirm further gains is 122.20, as the level has been a major support for most of the past two months, and a break above it should revert the ongoing bearish tone.
Support levels: 121.70 121.30 121.00
Resistance levels: 122.20 122.60 123.00
AUD/USD Current price: 0.7191
View Live Chart for the AUD/USD
The AUD/USD pair trades flat daily basis, right below the 0.7200 figure and mostly range bound, as investors wait for the US Central Bank. Gold prices are recovering strongly ahead of the news, limiting the downside for the Aussie, as investors square positions ahead of the event. Technically speaking, the short term outlook is neutral, given that the price is now below a flat 20 SMA while the technical indicators head nowhere around their mid-lines. In the 4 hours chart, the technical indicators are biased lower around their mid-lines, while the price remains below its 20 SMA, with only a recovery above 0.7240 opening doors for further recoveries.
Support levels: 0.7160 0.7125 0.7090
Resistance levels: 0.7240 0.7285 0.7335
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