EUR/USD Current Price: 1.0818
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Dollar's recovery continues as market's mood recovered further this Wednesday, following positive news coming from China, which posted a larger-than-expected trade surplus for the past December. Stocks edged higher in Asia, supporting some gains in European indexes and pointing for a positive opening in Wall Street. The macroeconomic calendar remained light in Europe, although the EU released its Industrial Production data for November, showing that it fell by 0.7% monthly basis, while compared to a year before, rose by 1.1%, below the 1.3% expected. In the US, the most relevant piece of news will be the EIA report on US oil's stockpiles, as the commodity has been driven market's sentiment as much as China.
From a technical point of view, the EUR/USD presents a limited bearish tone in the short term, given that the price is now below its moving averages, whilst the technical indicators lack directional strength below their mid-lines. In the 4 hours chart, the technical picture is quite alike, with the 20 SMA turning south well above the current level and the technical indicators hovering within bearish territory. Buyers have surged on approaches to the 1.0800 figure, the level to break to confirm additional declines this Wednesday.
Support levels: 1.0800 1.0750 1.0715
Resistance levels: 1.0845 1.0880 1.0925
GBP/USD Current price: 1.4412
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The British Pound recovered some ground against the greenback at the beginning of the day, with the GBP/USD pair reaching a daily high of 1.4473, before turning back south and turning intraday negative ahead of the US opening. Now holding above the 1.4400 level, the 1 hour chart shows that the price is now below its 20 SMA, while the Momentum indicator remains horizontal below its 100 level and the RSI indicator bounces from near oversold readings, now around 41, all of which maintains the risk towards the downside, despite the lack of directional momentum. In the 4 hours chart the 20 SMA heads strongly lower around 1.4490 now, providing a strong dynamic resistance, while the technical indicators have corrected extreme oversold readings, but remain within bearish territory, in line with additional declines as long as below 1.4500.
Support levels: 1.4410 1.4380 1.4350
Resistance levels: 1.4455 1.4490 1.4545
USD/JPY Current price: 118.10
View Live Chart for the USD/JPY
Short term bullish above 118.40. The USD/JPY posted a shallow advance this Wednesday, rallying up to 118.37 during the Asian session. The pair however, has spent most of the first half of the day consolidating within a tight range, meeting buying interest on approaches to the 118.00 level. Technically, the 1 hour chart shows that the price extended above its 100 SMA, currently around 117.65, but stalled short from the 200 SMA, the immediate resistance around 118.40. In the same chart, the technical indicators hold above their mid-lines, but the Momentum indicator heads south whilst the RSI indicator consolidates around 55. In the 4 hours chart, the price is still far below its moving averages, suggesting a longer term recovery is yet to be confirmed, although the technical indicators are recovering their bullish slopes well above their mid-lines, and following some consolidation, indicating further gains are likely particularly on a break above 118.40.
Support levels: 117.65 117.20 116.65
Resistance levels: 118.40 118.95 119.35
AUD/USD Current price: 0.7016
View Live Chart for the AUD/USD
The AUD/USD pair advanced this Wednesday, helped by easing concerns over Chinese economic developments, although the advance has been quite limited, with the pair below a daily high set at 0.7048. Holding above the 0.7000 level, the 1 hour chart shows that the price is above a bullish 20 SMA, but that the technical indicators lack directional strength within bullish territory. In the 4 hours chart, the price is consolidating well above a flat 20 SMA, while the technical indicators also hold within positive ground, but fail to signal an upward continuation rally.
Support levels: 0.6955 0.6905 0.6870
Resistance levels: 0.7040 0.7075 0.7120
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