EUR/USD Current Price: 1.1029
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The dollar traded higher across the board on Monday, posting sharp gains against the pound and the euro amid renewed fears of a Brexit. The shared currency was further weighed by disappointing PMIs readings and advances in stocks amid higher oil prices. During the New York session, data showed US national activity improved, with the Chicago Fed index rising to 0.28 in January versus -0.34 the previous month, while Markit manufacturing PMI for February came in at 51.0 slightly below the 52.0 expected.
EUR/USD fell sharply and bottomed out at 1.1003, where the 200-day SMA halted the decline at the beginning of the American session. The pair closed the day with losses after a short-lived bounce seen on Friday. Technically, short-term indicators favour a downward continuation as in the hourly chart the pair consolidates at daily lows and indicators remain flat well below their mid-lines. However, in 4 hours chart, the RSI remains in oversold territory which might signal further consolidation or even a limited bounce before the next leg lower.
Support levels: 1.1000 1.0962 1.0903
Resistance levels: 1.1050 1.1090 1.1140
GBP/USD Current price: 1.4148
View Live Chart for the GBP/USD
The pound was among the worst performers in the FX space on Monday as the currency was hit by growing fears of a Brexit. Prime Minister David Cameron scheduled a UK referendum for June 23rd for Britons to vote on whether they want to remain in or leave the European Union. He later defended EU deal before the Parliament and said Britain will have a ‘special status’ following his renegotiation. However, London Mayor Boris Johnson and six of the 23 members of Cameron's Cabinet continue to campaign for the exit. GBP/USD plummeted and broke below January’s lows to hit its lowest level since March 2009 at 1.4056, although it managed to trim losses during the American afternoon to end around 1.4150. In the 1 hour chart, the RSI has already corrected from oversold levels, while the pair hovers below a bearish 20-SMA. In the 4 hour chart indicators have bounced from lows but are far from suggesting a lasting recovery. Next downside targets stands at the 1.4000 zone with a break exposing the 1.3840 area.
Support levels: 1.4050 1.4000 1.3900
Resistance levels: 1.4200 1.4260 1.4305
USD/JPY Current price: 113.14
View Live Chart for the USD/JPY
USD/JPY finished the day higher, posting its first gain in 3 days, as the dollar strengthened broadly, although the USD rally was tempered during the New York session following softer-than-expected US manufacturing PMI. The pair pulled back from a peak of 113.38, but the downside was contained around 112.90 during the American afternoon. From a technical point of view, the 1 hour chart shows indicators have turned south, with Momentum crossing the 100 level upside-down which suggests upside potential might be limited. In the 4 hours chart, the pair remains limited by the 20-SMA while indicators have turned flat below their midlines, supporting the shorter-term view. A decisive break above 113.50 is needed to pave the way for further gains over the upcoming sessions.
Support levels 112.30 111.65 111.00
Resistance levels 113.50 114.00 114.30
AUD/USD Current price: 0.7234
View Live Chart for the AUD/USD
The Australian dollar broke above the 0.7200 level and advanced to its highest level since January 4th against the greenback, underpinned by higher oil prices and the rise in global stocks. AUD/USD recovered nearly 180 pips from Friday’s lows and peaked at 0.7246 before losing steam. However, the pair clings to a daily gain of more than 1% as it finishes the day around 0.7230. The short-term bullish tone persists as the pair has broken above the 200-day SMA and indicators point sharply higher in the daily chart. In the 4 hour charts RSI indicator has turned flat near overbought levels, while Momentum began to correct lower following Monday’s sharp rise, suggesting a phase of consolidation might precede another leg higher. AUD/USD is close to completely retrace its 2016 fall, which saw the pair hitting a 7-year low a month ago.
Support levels 0.7150 0.7100 0.7070
Resistance levels 0.7250 0.7280 0.7300
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