EUR/USD Current Price: 1.0898
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The American dollar trades generally lower against its major rivals, in anticipation of a dovish stance from the US Central Bank, which will announce its latest economic policy decision in the US afternoon. The EUR/USD pair advanced beyond the 38.2% retracement of its December rally at 1.0845 during Asian hours, and found support in the level during the European morning, and is currently trading near its daily high of 1.0911. In Germany, the GFK consumer confidence survey came out better-than-expected, at 9.4, matching previous month result, underpinning the common currency. After Wall Street opening, the US will release the New Home Sales data for December, but investors will likely remain side-lines ahead of the FOMC statement later in the day. Current greenback weakness, is also due to investors pricing in a dovish stance, as no news are expected from the FED, beside the acknowledgment of Chinese woes.
Technically and for the short term, the 1 hour chart for the EUR/USD pair supports some further advances, as the technical indicators hover within positive territory, lacking momentum, but that the price has broken above its moving averages. in the 4 hours chart, the technical indicators present bullish slopes above their mid-lines, while the price is above its 20 SMA, supporting the shorter term view.
Support levels: 1.0845 1.0810 1.0770
Resistance levels: 1.0925 1.0960 1.1000
GBP/USD Current price: 1.4334
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The GBP/USD pair trades around its daily opening, having been unable to rally beyond the 1.4360 region, last week and this week highs. The short term picture shows that the upside is still limited, given that in the 1 hour chart, the price is unable to advance beyond its 20 SMA, while the technical indicators head lower around their mid-lines. In the 4 hours chart, however, buyers have surged around a mild bullish 20 SMA, now around 1.4285, while the Momentum indicator has bounced from its mid-line, and the RSI indicator heads higher around 56. The pair needs an upward correction after shedding over 850 pips during the last 4 weeks, but the movement is still uncertain, and there are no confirmation still that an interim bottom has been reached. Should the pair end the day above 1.4400, the upside will look more constructive for the rest of the week.
Support levels: 1.4285 1.4250 1.4220
Resistance levels: 1.4365 1.4400 1.4440
USD/JPY Current price: 118.34
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Directionless ahead of the FOMC. The USD/JPY remains in wait-and-see mode ahead of the US FOMC announcement later in the American afternoon, having traded in a 20 pips range ever since the day started. The pair presents a slightly positive tone, as in the 1 hour chart, the price is holding above a bullish 100 SMA, while further above the 200 SMA, and as the technical indicators head north, crossing their mid-lines towards the upside. In the 4 hours chart, the price is above is 100 SMA but the technical indicators lack enough upward momentum to confirm further gains. The key resistance remains at 118.90, the 38.2% retracement of the latest bearish run and last Friday high, as it will take a break above it to confirm further gains. Below 118.15 however, the risk will turn towards the downside, with 117.30 as a probable bearish target for the day.
Support levels: 118.15 117.70 117.30
Resistance levels: 118.90 119.35 119.70
AUD/USD Current price: 0.7059
View Live Chart for the AUD/USD
The Aussie trades at its highest in three weeks, helped by better-than-expected Australian inflation figures in the Q4 of 2015. The pair presents a short term bullish tone, given that the price accelerates above a bullish 20 SMA, while the technical indicators head sharply higher above their mid-lines. In the 4 hours chart, the price is above a bullish 20 SMA while the technical also head north above their midlines in line with further gains. The pair is pressuring its 200 EMA, still capping the upside in the 0.7065 region, and a break above it should lead to some a steadier recovery in the commodity related currency, particularly if the greenback remains week.
Support levels: 0.7040 0.7000 0.6960
Resistance levels: 0.7065 0.7110 0.7150
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