EUR/USD Current Price: 1.1093
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As oil plummets below $30.00 a barrel, risk aversion trading takes over the financial boards. Stocks in Europe are diving, US futures trade sharply lower, and gold and the JPY advance firmly against its major rivals. The EUR/USD pair, for once, is losing ground, having advanced during the European morning up to 1.1177 and now around its daily low, below the 1.1100 figure. The calendar has been quite light so far today, with only a minor confidence indicator having been released in Europe, the EU Sentix Investor Confidence for February, down to 6.0 against previous 9.6 and expectations of 7.6. During the upcoming American session, the US will release its Labor Market Conditions Index for January, previously at 2.9.
EUR/USD's slide is limited, however, as the common currency sees some demand due to its funding currency condition. Nevertheless, seems last week rally has been a bit too much for the EUR, and the short term picture for the pair is currently bearish, given that in the 1 hour chart, the price has broken below a now bearish 20 SMA, which stands near the 23.6% retracement of the latest bullish run at 1.1145, offering an immediate resistance. In the same chart, the technical indicators hover directionless within bearish territory. In the 4 hours chart, the technical indicators head strongly lower, with the RSI indicator still above 50. Renewed selling interest below 1.1085, the 38.2% retracement of the same rally, should see the pair extending its decline down to 1.1025, the 200 DMA.
Support levels: 1.1085 1.1060 1.1025
Resistance levels: 1.1145 1.1180 1.1220
GBP/USD Current price: 1.4368
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The British Pound fell down to 1.4380 against the greenback, and maintains the short term negative tone, weighed by the decline in crude. The GBP/USD has corrected the 50% of its latest daily decline before resuming its slide, and is currently bouncing from the 23.6% retracement of the same ally, around 1.4360, the immediate support. In the 1 hour chart, the price has fallen far below its 20 SMA, while the technical indicators maintain strong bearish slopes, despite being in oversold territory. In the 4 hours chart, the technical indicators present a strong bearish momentum and approach oversold levels, with the 20 SMA having capped the upside around 1.4540. Further declines below the mentioned Fibonacci support should be expected, particularly if market's negative mood persists.
Support levels: 1.4360 1.4320 1.4285
Resistance levels: 1.4390 1.4435 1.4460
USD/JPY Current price: 116.46
View Live Chart for the USD/JPY
The USD/JPY pair extended its decline down to 116.11 ahead of the US opening, fueled by risk aversion, as crude oil prices fell below $30.00 a barrel, while US yields nose dive. The 10year yield is below 1.80%, leading to some Japanese yen demand. From a technical point of view, the pair is bearish, despite in the 1 hour chart, the technical indicators are posting modest bounces, particularly the RSI which reached oversold territory. In the same chart, the 100 SMA has accelerated its decline, and now stands at 118.00. In the 4 hours chart, the technical indicators have corrected the extreme readings reached last Friday, but are back heading lower, with the RSI about to break below the 30 level, in line with further declines. The key level to watch is 115.96, January's low, with a break below it fuelling the decline towards the 115.00 figure.
Support levels: 116.20 115.95 115.50
Resistance levels: 116.60 117.00 117.40
AUD/USD Current price: 0.7054
View Live Chart for the AUD/USD
The AUD/USD pair trades at its lowest since Feb 2, having accelerated its decline in the European morning. The 1 hour chart shows that the price is hovering near its daily low, below a bearish 20 SMA and with the technical indicators heading south within negative territory, all of which support some further declines. In the 4 hours chart, technical readings present an even stronger bearish tone, as the price is reaching fresh lows below the 200 EMA. The immediate support comes at 0.7040, a strong static level, with a break below probably leading to a decline below the 0.7000 figure.
Support levels: 0.7040 0.7000 0.6970
Resistance levels: 0.7100 0.7140 0.7185
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