EUR/USD Current price: 1.1243
View Live Chart for the EUR/USD
Two Central Banks have passed offering nothing really ground breaking, but helping the American dollar in recovering some ground after falling down to fresh weekly lows against the EUR and the GBP. In Europe, stocks opened with a soft tone, and remain quiet around their opening, waiting for the US Central Bank's minutes, to be released later in the American afternoon. Macroeconomic data coming from Germany disappointed once again, with the trade balance surplus well below previous month one at €19.6B in August, whilst export and imports posted a sharp decline.
The ECB released the Accounts of its latest meeting, with the Central Bank expressing its concern over the slowdown in emerging markets weighing in global growth, whilst the local recovery has been weaker than previously expected. The ECB also said that it has been front buying ever since September, and will continue to do so until November.
The EUR/USD pair pulled down from a daily high of 1.1314 and accelerated its decline after losing again the 1.1280, and falling as low as 1.1239. In the US, the weekly unemployment claims came out better-than-expected, down to 263K in the week ending October 2. The 1 hour chart shows that the price temporary broke above the daily descendant trend line coming form 1.1713, but is now below it, with the technical indicators heading sharply lower and the price below the 20 SMA, supporting a downward continuation short term. In the 4 hours chart, the price is now struggling around its 20 SMA, whilst the technical indicators also turned sharply lower, but hold above their mid-lines.
Support levels: 1.1200 1.1160 1.1120
Resistance levels: 1.1285 1.1335 1.1370
GBP/USD Current price: 1.5270
View Live Chart for the GPB/USD
The Bank of England left its economic policy unchanged, largely in line with market's expectations, with 1 out of 9 MPC members voting for a rate hike. The tone was mild dovish, as the BOE expressed its concern over the currency strength while downgrading its inflation expectations, now seen below 1% until 2016 spring. The GBP/USD pair retreated from a fresh weekly high of 1.5371, accelerating its decline below the 1.5300 level on the back of EUR decline, accelerating lower on the back of US employment data. The 1 hour chart shows that the indicators head sharply lower near oversold territory, whilst the 20 SMA is now turning south around 1.5315, the 38.2% retracement of the latest daily decline. In the 4 hours chart, the technical indicators retreat from overbought levels, but the price is well above its 20 SMA that now converges with the 23.6% retracement of the same rally around 1.5240.
Support levels: 1.5240 1.5210 1.5170
Resistance levels: 1.5315 1.5340 1.5390
USD/JPY Current price: 119.92
View Live Chart for the USD/JPY
Increasing bearish potential. The USD/JPY pair remains flat, but daily basis, it has posted a lower low at 119.62 whilst the upside remains capped by selling interest around the 120.00 figure. With the pair still within its recent range, the daily chart shows that the bearish potential increases as the price moves further below the 200 DMA, whilst the 100 DMA gains bearish strength above the other. Shorter term, the 1 hour chat shows that the price holds below its 100 and 200 SMAs, whilst the technical indicators have bounced and are about to cross their mid-lines towards the upside, on the recent dollar's momentum. In the 4 hours chart, the technical indicators also turned north, but remain below their mid-lines, whilst the price remains below its moving averages. The pair needs to break above 120.35, a Fibonacci resistance, to confirm additional intraday gains that anyway will hardly extend beyond 121.00
Support levels: 119.60 119.35 118.90
Resistance levels: 120.35 120.70 121.00
AUD/USD Current price: 0.7170
View Live Chart for the AUD/USD
The AUD/USD pair is easing from its Wednesday high, as dollar advances ahead of the American opening, weighed by a sudden decline in gold prices amid dollar's demand. The 1 hour chart shows that the price is being capped by a bearish 20 SMA, whilst the technical indicators turned south below their mid-lines. In the 4 hours chart, the technical indicators are pointing for a downward correction, heading south from extreme overbought levels, whilst the 20 SMA aims higher around 0.7145, providing an immediate support in the case of further declines.
Support levels: 0.7145 0.7110 0.7080
Resistance levels: 0.7200 0.7235 0.7280
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.