EUR/USD Current Price: 1.1242

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The EUR/USD rallied up to 1.1337 this Tuesday, as the dollar keeps plummeting on risk-averse sentiment trading. Worldwide stocks extended their decline as oil prices fell over 4% mid American afternoon, and major pairs traded accordingly, with macroeconomic data being mostly ignored all through the day. This Wednesday, FED's head, Janet Yellen, is due to testify on the Semiannual Monetary Policy Report before the Congress, and the ongoing markets' turmoil and the risk it poses to future economic growth, anticipates a dovish stance. Earlier in the day, German's trade balance showed a decreasing surplus of €18.8B as exports and imports decreased by 1.6%, each. The country's industrial production decreased by 1.2% in December, also indicating shrinking growth. In the US, Job openings rebounded in December to 5.6 million, bringing the opening rate back to a series high of 3.8%. But wholesales inventories  in the same month fell for the third straight month, down by 0.1% to a seasonally adjusted $582 billion, while annualized growth in restocking slowed to 1.9% from a 6% pace early last year.

Trading at levels last seen in October 2015, the EUR/USD pair has advanced over 450 pips in less than a week, and the technical picture suggests the rally can extend further, up to 1.1460 a major static resistance for all 2015. Short term, the rally is slightly overstretched, and some intraday corrective movements can't be dismissed, but deeps will likely be seen as buying opportunities. In the 1 hour chart, the price has extended firmly above its moving averages, whilst the technical indicators are losing upward strength in overbought territory, in line with short term downward corrections. In the 4 hours chart, the price has met buying interest around a bullish 20 SMA, while the Momentum indicator heads sharply higher above its 100 level, and the RSI indicator consolidates above 70, in line with the shorter term view. 

Support levels: 1.1290 1.1245 1.1200

Resistance levels: 1.1340 1.1380 1.1420


EUR/JPY Current price: 129.80

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The EUR/JPY sunk to a daily low of 128.25, as the Japanese yen soared during the Asian session, tracking socks in their way lower. The currency has erased all of its latest losses against its major rivals, those triggered by the latest BOJ's decision to extend QE. Some market talks over a new possible intervention have surged back this week, but seems quite unlikely that the Bank of Japan will waste time, and money, in the ongoing environment. The pair recovered from the mentioned low on EUR's demand, advancing over 200 pips before losing upward steam. In the 1 hour chart, the latest recovery stalled around a bearish 100 SMA, while the technical indicators are turning south from near overbought levels, indicating some further short term slides for the pair. In the 4 hours chart, the price is currently developing above its 100 and 200 SMAs, both converging around 129.40, providing an immediate support, while the technical indicators have recovered from oversold levels and continue heading higher, but remain within negative territory, limiting chances of a stronger recovery ahead. 

Support levels: 129.40 128.95 128.60 

Resistance levels: 130.10  130.50 131.00


GBP/USD Current price: 1.4409

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The British Pound enjoyed from some limited demand in the US session amid broad dollar's weakness, but remains among the weakest currencies of the forex board. The GBP/USD pair saw a limited spike during the European session, following a better-than-expected UK trade balance for December, as it came in with a lower deficit, down to  £-2.709B from a previous revised £-4.031B. The pair however, eased below the 1.4400 level afterwards, and approached to its weekly low of 1.4350 before finally advancing up to 1.4514, where selling interest halted the advance. Now trading mid-range, chances of further advances seem limited in the short term, as in the 1 hour chart, the technical indicators have turned south while the price approaches a horizontal 20 SMA, currently around 1.4435. In the 4 hours chart, the daily spike stalled right around the 200 EMA, and the 38.2% retracement of the latest weekly slide, a major resistance in the 1.4520/30 price zone. Also in the same chart, the price was unable to establish itself above a bearish 20 SMA, while the technical indicators have bounced from near oversold levels, but are losing upward strength below their mid-lines, all of which maintains the risk towards the downside. 

Support levels: 1.4435 1.4395 1.4350 

Resistance levels: 1.4490 1.4530 1.4565


USD/JPY Current price: 114.76

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The USD/JPY pair traded as low as 114.20 this Tuesday, it lowest since November 2014, with the Japanese Yen higher amid increasing fears of a global economic slowdown triggering demand for safe-haven assets. The pair later attempt to recover some ground, as risk sentiment eased early Europe, but failed to hold above the 115.00 level and resumed its decline on poor dollar's performance. The pair maintains a clear bearish bias both short and long term, particularly as this last break has left price below the 115.80/116.20 region, where strong bounces were seen all through 2015. As for the 1 hour chart, the price is consolidating well below its moving averages, with the 100 SMA capping the upside now around 116.60, and the technical indicators lacking directional strength within neutral territory. In the 4 hours chart,  the technical indicators hover around oversold territory, while the price is far below its 100 and 200 SMAs, indicating the strength of the bearish move. The pair has scope now to extend its decline towards the 112.50 region, particularly if Yellen suggests any further rate hike will be on hold until June.

Support levels: 114.65 114.20 113.75

Resistance levels: 115.10 115.55 115.90 


AUD/USD Current price: 0.7054

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The AUD/USD pair fell as low as 0.6972, but bounced off its lows and recovered up to the 0.7100 during the American afternoon, where selling interest sent the pair back lower. The decline in the Aussie was highly linked to plummeting oil prices, as WTI futures flirted with $28.00 a barrel before Wall Street's closing bell. The Aussie has entered in a selling trend ever since topping at 0.7242 last week.  Now trading around 0.7060, the 1 hour chart for the pair shows that the price stands a few pips above a bearish 20 SMA, while the technical indicators are mostly flat around their mid-lines, lacking directional strength. In the 4 hours chart, the 20 SMA heads sharply lower above the current level, acting as an immediate resistance around the 0.7100 figure, while the Momentum indicator heads higher below its 100 level and the RSI indicator heads south around 44, maintaining the risk towards the downside. A break below 0.7040, the immediate support, should lead to a retest of the 0.7000 figure, en route to the daily low of 0.6972.

Support levels: 0.7040 0.7000 0.6970 

Resistance levels: 0.7100 0.7150 0.7200

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