EUR/USD: lower lows supporting additional declines

 

EUR/USD Current price: 1.1196

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The bearish trend ruling the EUR/USD pair, took another step this Tuesday, with the pair falling down to 1.1154, a couple of pips below its previous low, whilst the upside was limited by selling interest around the 1.1210 level. Earlier in the day German Retail Sales surged 5.3% yearly basis, supporting the short lived spike to the mentioned daily high.  As the US session starts, the pair trades below its 20 SMA in the 1 hour chart, while the technical indicators aim higher below their midlines, reflecting the latest bounce from the daily low, but far from suggesting a strong advance on the makes. In the 4 hours chart, the price stands below a strongly bearish 20 SMA whilst the Momentum indicator lies flat below 100 and the RSI holds at 41, all of which should continue to keep the upside limited.

Support levels: 1.1140 1.1095 1.1050

Resistance levels: 1.1210 1.1250 1.1285 

GBP/USD Current price: 1.5357

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The GBP/USD trades near a daily low set at 1.5343 so far today, presenting a limited bearish tone in the short term, as the 1 hour chart shows that the price holds below a bearish 20 SMA, whilst the technical indicators remain directionless in negative territory. In the 4 hours chart the technical picture favors the downside, as the 20 SMA gained bearish slope, now coping the upside around 1.5400, while the technical indicators head lower below their mid-lines. Nevertheless, the 200 EMA offers a strong dynamic resistance around 1.5335, and it will take a clear break below it to confirm additional declines towards the 1.5290 price zone. 

Support levels: 1.5335 1.5290 1.5250

Resistance levels: 1.5400 1.5450 1.5490 

USD/JPY Current price: 119.68

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The USD/JPY pair eased back below the 120.00 level during Asian trading hours, back towards its weekly opening levels. Having failed once again to sustain gains beyond the critical figure, and having posted a lower high weekly basis, the risk of a new leg south has increased substantially. From a technical point of view and in the short term, the 1 hour chart shows that the price continues to develop above its 100 and 200 SMAs, but the technical indicators are now below their mid-lines, with the RSI heading south around 44, anticipating some further decline. In the 4 hours chart the indicators are heading lower and approaching their midlines, which means a break below 119.40 support is required to confirm the bearish extension, eyeing then the 118.80 price zone.

Support levels: 119.40 118.80 118.50

Resistance levels: 119.95 120.45 120.90 

AUD/USD Current price: 0.7820

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The Aussie surged on relief, after the RBA decided to keep rates on hold this month, with the AUD/USD surging to a fresh weekly high of 0.7831, and finding short term buying interest around the 0.7800 figure, now the immediate support. The 1 hour chart shows that the price stands well above a bullish 20 SMA, although the technical indicators lack upward strength but stand in positive territory. In the 4 hours chart, the pair presents a neutral technical stance, with the price above a bearish 20 SMA and indicators flat around their midlines, suggesting the upward strength may be over, but not yet confirming an upcoming leg lower.

Support levels: 0.7800 0.7755 0.7720 

Resistance levels: 0.7840 0.7890 0.7925