EUR/USD: sentiment rules, uncertainty grows

EUR/USD Current Price: 1.0885

The EUR/USD pair reached the top of its latest range mid European session, posting a daily high of 1.0942 as European stocks plummeted after the opening. The pair however, retreated from the strong resistance level, helped by a strongly dovish Minutes from the ECB, showing some members voted for a 20bp rate cut. Anyway, the retracement was mostly technical, given that the price has been rejected from this region multiple times ever since the year started. Technically, the 1 hour chart shows that the price is currently hovering around a bullish 20 SMA, while the technical indicators have stabilized around their mid-lines, limiting slides ahead of the US opening. In the 4 hours chart, the technical indicators have turned south around their mid-lines, whilst the price is above its moving averages, which anyway lack directional strength. Market is being led by sentiment, meaning upcoming moves will depend mostly on stocks and oil.

Support levels: 1.0845 1.0800 1.0750

Resistance levels: 1.0925 1.0950 1.0990

GBP/USD Current price: 1.4391

View Live Chart for the GBP/USD

The British Pound advanced up to 1.4436 against the greenback, following the release of the latest BOE's economic policy decision, showing no changes, as expected, and with 1 out of 9 members voting for a rate hike. The result meeting was less dovish than expected, and that's why the Pound bounced, albeit the dominant bearish trend imposed itself, given that there were no actual surprises. The hour chart shows that the price was unable to extend beyond a bullish 20 SMA, while the technical indicators turned flat within bearish territory after correcting oversold readings. In the 4 hours chart, the price continues meeting selling interest on approaches to a bearish 20 SMA, today around 1.4450, while the technical indicators are hovering near oversold readings, lacking bearish strength but far from suggesting the pair may recover ground.

Support levels: 1.4350 1.4310 1.4260

Resistance levels: 1.4425 1.4470 1.4520

USD/JPY Current price: 117.71

View Live Chart for the USD/JPY

The USD/JPY pair is choppy around the 118.00 level this Thursday, unable to set a clear tone, as uncertainty rules. Stocks are still seeking for direction in Europe, so we may need to wait until Wall Street opening, to see if investors get some clues from there. In the meantime, the 1 hour chart shows that the price remained below a bearish 200 SMA, with the price moving back and forth around a horizontal 100 SMA, as the Momentum indicator heads higher above the 100 level. In the same chart, the RSI indicator has turned south and stands now around 49, anticipating some additional declines on a break below 117.30, the daily low. In the 4 hours chart, the price remains well below its moving averages, while the technical indicators are aiming slightly higher within neutral territory.

Support levels: 117.30 116.90 116.50

Resistance levels: 118.05 118.40 118.95

AUD/USD Current price: 0.6943

View Live Chart for the AUD/USD

The AUD/USD pair plummeted to 0.6909, a couple of pips above the multi-year low posted last September at 0.6906, despite Australian employment data released during the Asian session was slightly better-than-expected. Technically, the downside is favored, with the 1 hour chart showing that the price is around a strongly bearish 20 SMA, while the Momentum indicator aims higher around 1000 and the RSI indicator heads lower at 46. In the 4 hours chart, the price is well below its moving average, while the technical indicators head higher below their mid-lines, all of which limits chances of a stronger recovery, but without confirming a new leg south at the time being.

Support levels: 0.6905 0.6870 0.6830

Resistance levels: 0.7000 0.7040 0.7075

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