EUR/USD Current Price: 1.0970
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The American dollar trades broadly lower across the board, with the common currency up to a fresh weekly high, around the 1.0980 level. Despite early data showed that growth in the services sector across Europe remains limited, and the EU Retail Sales in December grew by just 0.3%, market's concerns over the US economy, are behind the greenback's decline. The ADP private survey came out at 205K, better than the 195K expected, but growing at the slowest pace since October. Stocks are in the red, oil struggles to hold above $30.00 a barrel, while gold reaches fresh highs above $1,130 a troy ounce, all of which points for further declines in the greenback.
From a technical point of view, the EUR/USD pair is strongly bullish, given that the price has accelerated its advance beyond the daily descendant trend line coming from December high, while in the 1 hour chart, the technical indicators head higher near overbought levels as the price extends above its moving averages. In the 4 hours chart, the technical readings also present a strong upward momentum, albeit selling interest may surge around 1.1000. Nevertheless, if pullbacks towards 1.0945, the mentioned trend line, attract buyers, the pair continue advancing up to the 1.1040/50 region.
Support levels: 1.0954 1.0920 1.0880
Resistance levels: 1.1000 1.1045 1.1090
GBP/USD Current price: 1.4535
View Live Chart for the GBP/USD
The GBP/USD trades at fresh 3-weeks highs above 1.4335, boosted by a strong UK services PMI report for January, which showed that the sector grew beyond expected, posting 55.6 against the 55.5 previous. But the sell-off in the greenback is also supporting the pair, which has just broke above the 38.2% retracement of the latest daily decline. Technically the 1 hour chart shows that the technical indicators continue heading higher, despite being in overbought territory, while the 20 SMA gains upward strength below the current price. In the 4 hours chart, the technical indicators are also near overbought levels, while the price is breaking above its 200 EMA for the first time since early December. Further gains beyond it should see the rally extending up to 1.4810 during the upcoming days.
Support levels: 1.4530 1.4490 1.4450
Resistance levels: 1.4565 1.4600 1.4640
USD/JPY Current price: 119.21
View Live Chart for the USD/JPY
More slides below 118.85. The USD/JPY pair plummeted as investors seek for safety, with the pair down to 119.02 ahead of the US opening. The bearish tone is quite clear in the short term, given that in the 1 hour chart, the price is currently below the 100 and 20 SMAs, albeit the shortest stands above the largest. In the same chart, the technical indicators have turned sharply lower below their mid-lines, with the RSI indicator approaching oversold levels. In the 4 hours chart, the technical indicators present a strong bearish momentum near oversold territory, while the price stalled its decline around the 200 SMA. The immediate support comes at 118.85, the 38.2% retracement of the latest daily decline, and a break below it should fuel the slide, down to the 118.00 region during US trading hours.
Support levels: 118.85 118.40 118.00
Resistance levels: 119.35 119.75 120.10
AUD/USD Current price: 0.7078
View Live Chart for the AUD/USD
The AUD/USD pair approaches the 0.7100 figure as the dollar's sell-off intensifies, recovering a good part of its post-RBA losses. The pair is stalling around a major Fibonacci resistance, the 50% retracement of the latest daily decline, but the 1 hour chart supports some further gains, as the price is also above its 20 SMA, while the technical indicators head higher within positive territory. In the 4 hours chart, however, the pair lacks momentum, given that the technical indicators are flat around their mid-lines, while the price is barely above a bearish 20 SMA.
Support levels: 0.7040 0.7000 0.6970
Resistance levels: 0.7080 0.7105 0.7150
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