EUR/USD: tracking oil's prices

EUR/USD Current Price: 1.0825

Markets have been pretty quiet during the first half of the day, with no news in Asia or Europe able to affect currencies. As usual, oil prices led the way, with the commodity briefly falling below $30.00 at the beginning of the day, and leading to some EUR and JPY gains, but recovering partially during the European morning, and therefore sending both currencies back down against the greenback. The US will release some relevant macroeconomic figures during the upcoming session, including the Markit services PMI, Consumer Sentiment and the Richmond FED manufacturing index.

The EUR/USD pair traded as high as 1.0873 before retreating, now trying to recover from a low set at 1.0818. The 1 hour chart shows that the price is below its moving averages, while the technical indicators aim slightly higher, but within bearish territory, limiting chances of a stronger advance. In the 4 hours chart, the price struggles around a bearish 20 SMA, while the technical indicators lack directional strength around their mid-lines, all of which maintains the upside limited. Nevertheless, some further gains can be seen, particularly if US data disappoints and oil extends its recovery.

Support levels: 1.0780 1.0745 1.0710

Resistance levels: 1.0845 1.0890 1.0925

GBP/USD Current price: 1.4237

View Live Chart for the GBP/USD

The British Pound found some support in oil's prices recovery, although unable to run, as the bearish trend prevails, moreover after BOE's Governor Carney said that rates could go down, rather than up. The 1 hour chart for the pair shows that the price is above a flat 20 SMA, while the technical indicators are turning lower around their mid-lines, still indicating that short term selling interest surges on spikes. In the 4 hours chart, the price has been so far unable to establish itself above its 20 SMA, while the Momentum indicator heads south below the 100 level, and the RSI hovers around 49, in line with further declines, maintaining the risk towards the downside, particularly on a break below 1.4190.

Support levels: 1.4190 1.4160 1.4120

Resistance levels: 1.4280 1.4325 1.4360

USD/JPY Current price: 118.30

View Live Chart for the USD/JPY

More gains above 118.90 The USD/JPY pair fell down to 117.65 during the Asian session, having however, recovered the 118.00 level during the European morning. The Japanese yen remains confined to tight intraday ranges, mostly following oil's lead when it comes to direction, with the currency appreciating as the commodity grinds lower, and easing as the black gold recovers ground. Technically, the 1 hour chart shows that the price bounced from around its 100 and 200 SMAs, both with a slightly bullish tone, and the 23.6% retracement of the latest daily fall. In the same chart, the technical indicators head slightly higher above their mid-lines, all of which should maintain the downside limited, at least in the short term. In the 4 hours chart, the price briefly deep below its 100 SMA while the technical indicators head nowhere above their mid-lines. The key is the 118.90 level, the 38.2% retracement of the same decline, as it will take a clear break above it to see a more sustainable bullish rally in the pair, particularly if US upcoming data surprises to the upside.

Support levels: 118.15 117.70 117.30

Resistance levels: 118.50 118.90 119.35

AUD/USD Current price: 0.6996

View Live Chart for the AUD/USD

The AUD/USD pair advances this Tuesday after falling down to 0.6918 at the beginning of the day, tracking oil's decline. Now trading at fresh daily highs, the 1 hour chart shows that the price has advanced above a flat 20 SMA, while the technical indicators head higher well into positive territory, as the price approaches the 0.7000 figure. In the 4 hours chart, the price is currently breaking above a bullish 20 SMA, but the technical indicators hover around their mid-lines lacking enough strength to confirm a continued advance. The pair has a strong resistance around 0.7040, where selling interest has been containing rallies ever since the month started.

Support levels: 0.6960 0.6920 0.6870

Resistance levels: 07000 0.7040 0.7075

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