EUR/USD Current Price: 1.0883
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The EUR/USD pair trades slightly lower this Monday, with the dollar mixed across the board. The week started with a stronger greenback amid some follow through of Friday's post-NFP rally, yet another 5% decline in Chinese stocks at the beginning of the week, is spurring concerns over investors that are now looking for fresh clues before taking firmer positions. In Europe, investors' confidence declined in January according to the Sentix index, down to 9.6 from a previous 15.7 reading. The US will release its December Labor Market Conditions Index ahead of Wall Street opening, with expectations being high, considering the strong employment report released last Friday.
From a technical point of view, the 1 hour chart shows that the price is being capped in the short term by its 20 SMA, whilst the technical indicators turned south below their mid-lines. The pair posted a daily high of 1.0969 before retreating, yet the main resistance continues being 1.0925, the 23.6% retracement of the December rally. In the 4 hours chart, the technical readings are also increasingly bearish, but above their mid-lines, while the 20 SMA maintains its bullish slope below the current price. It will take a break below 1.0845, the 38.2% retracement of the same rally, to confirm further declines towards the 1.0800 region.
Support levels: 1.0845 1.0800 1.0750
Resistance levels: 1.0925 1.0960 1.1000
GBP/USD Current price: 1.4574
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The GBP/USD pair corrects higher this Monday, with the pair having extended its decline down to 1.4493 during the past Asian session. The movement is so far corrective, particularly considering that the pair has closed in the red during the last eight trading days. Short term, the 1 hour chart shows that the price is currently above its 20 SMA, while the RSI indicator heads slightly higher around 60 and the Momentum indicator retreats from near overbought readings. In the 4 hours chart, the price is advancing towards a bearish 20 SMA, currently heading south and offering an immediate resistance at 1.4585, while the technical indicators head higher, around their mid-lines, in line with further advances should the dynamic resistance is finally broken.
Support levels: 1.4535 1.4500 1.4470
Resistance levels: 1.4585 1.4625 1.4660
USD/JPY Current price: 117.83
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Short term bullish. The USD/JPY pair plummeted to 116.69 during the Asian session, with the Japanese yen accelerating its advance against most of its major rivals amid another round of poor Chinese data. According to the latest release, China CPI in December rose 0.5% monthly basis, thus the year-on-year reading grew less than expected, up to 1.6%. The producer price index, however, remained extremely negative, printing -5.9% in the same month. The pair recovered from the low, accelerating its advance with the European opening and trading near its daily high of 117.91 ahead of the US opening. Nevertheless, the upside potential seems limited to the short term, with the bearish longer term trend still holding in place. Technically, the 1 hour chart shows that the price remains well below a bearish 100 SMA currently around 118.10, while the Momentum indicator is turning lower in overbought territory, while the RSI indicator hovers around 54. In the 4 hours chart, the technical indicators have bounced sharply from oversold territory, and maintain strong bullish slopes, supporting further gains on a break above the mentioned resistance.
Support levels: 117.60 117.25 116.80
Resistance levels: 118.10 118.45 118.80
AUD/USD Current price: 0.7018
View Live Chart for the AUD/USD
Commodity currencies are recovering ground against the greenback, with the AUD/USD back above the 0.7000 mark after falling down to 0.6926 at the beginning of the day. The pair retains the positive tone in the short term, given that in the 1 hour chart, the technical indicators are heading slightly higher, despite being around overbought territory, while the price is above a now bullish 20 SMA. In the 4 hours chart, the price is now above the 20 SMA, while the Momentum indicator heads higher above its mid-line, and the RSI indicator recovers from oversold readings and heads south around 46, all in line with further advances.
Support levels: 0.7000 0.6955 0.6905
Resistance levels: 0.7040 0.7075 0.7110
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