EUR/USD Current Price: 1.1025
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The euro managed to steady on Tuesday while the pound extended losses to fresh cycle lows against the US dollar as appetite for risk lost momentum and concerns over a possible ‘Brexit’ continued to weigh. EUR/USD came under pressure during the European session on the back of disappointing German IFO report which showed business climate index fell to 105.7 in February, below the 106.8 reading expected, while the expectations index hit 98.8, its lowest level since November 2014. During the American afternoon US data came in mixed, but the dollar barely reacted.
EUR/USD briefly fell below the 1.10 mark and posted its lowest level in 3 weeks at 1.0989 but managed to recover slightly and spent the last hours in a range just above 1.1010. Technically, the 1 hour chart shows indicators flat below their mid-lines while spot trades just below a flat 20-SMA, maintaining a slight negative tone. In the 4 hours chart, RSI has already corrected oversold conditions and but indicators remain in negative territory, favouring a downward continuation, with the 1.0900 area as next bearish target.
Support levels: 1.0990 1.0962 1.0900
Resistance levels: 1.1050 1.1090 1.1140
GBP/USD Current price: 1.4027
View Live Chart for the GBP/USD
Fears of a Brexit continued to weigh on the pound on Tuesday, with GBP/USD falling to fresh 7-year lows during the American afternoon. UK Prime Minister Cameron scheduled a EU membership referendum for June 23rd and growing uncertainty ahead of the vote might keep the Sterling vulnerable in the short-term. GBP/USD bottomed out at 1.4012, finding support a few pips ahead of major support at 1.4000. Short-term technical picture remains clearly bearish as per indicators heading south below their mid-lines, but both 1 hour and 4 hours charts exhibit oversold conditions, suggesting the pound might take a breather before resuming the slide. GBP/USD needs at least to regain the 1.4200 level to ease immediate bearish pressure and increase chances of a stronger recovery. On the downside, a break below 1.4000 will fuel the fall, with 1.3850 standing as next major support area.
Support levels: 1.4000 1.3900 1.3850
Resistance levels: 1.4200 1.4260 1.4305
USD/JPY Current price: 112.10
View Live Chart for the USD/JPY
USD/JPY fell sharply during the Asian session as the yen advanced after BoJ governor Kuroda expressed further doubts about their QQE programme’s ability to raise prices. The negative tone in stock markets fueled JPY strength and sent USD/JPY below the 112.00 level to an 11-day low of 111.77 before finding support. USD/JPY has steadied near daily lows over the last hours and even though indicators have lost bearish potential, the downside remains favoured. In 1 hour charts, indicators remain below their mid-lines, while the pair trades under a bearish 20-SMA. In 4 hours charts, RSI and Momentum hover in negative territory although with flat slopes suggesting some consolidation ahead. A break below 111.65 however, could increase the bearish pressure exposing the 2016 low at 110.97.
Support levels: 111.65 110.97 110.10
Resistance levels: 113.05 113.50 114.00
AUD/USD Current price: 0.7213
View Live Chart for the AUD/USD
AUD/USD extended gains to a fresh 7-week high on Tuesday, but the advance faltered during the American session as the negative sentiment surrounding equities got to the Aussie. AUD/USD retreated from a peak of 0.7259 and erased early gains, falling to the 0.7200 area before the downside was contained. However, despite the recent pullback the short-term technical picture remains overall bullish with indicators holding in positive ground in 4 hour charts and the pair well above a bullish 20-day SMA. In the shorter-term, AUD/USD has lost upward momentum as indicators hover around their mid-lines, leaving room for a deeper corrective movement over the next sessions.
Support levels: 0.7150 0.7100 0.7070
Resistance levels: 0.7250 0.7280 0.7300
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