EUR/USD Current Price: 1.0843
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Euro weakness has been the main theme over the European morning, although the currency remained within its recent range, showing no reaction, despite markets' mood improved, as oil remains stable while stocks traded higher in Asia. There were no relevant news coming from Europe this Wednesday, although local share markets are struggling around the opening. The just released US ADP survey, is doing little for the greenback in spite it resulted better-than-expected. According to the report, the private sector added 214K new jobs during February, above the 190K expected and the previous revised to 193K.
The EUR/USD pair was showing some short term choppy price action ahead of the news, but it retains its overall negative tone, as in the 1 hour chart, the pair is developing below its 20 SMA, while the technical indicators have turned south within bearish territory. In the 4 hours chart, the bearish potential is even stronger, although the pair needs to trigger stops below 1.0810 to be able to confirm further declines towards the 1.0730 region.
Support levels: 1.0810 1.0770 1.0730
Resistance levels: 1.0890 1.0925 1.0960
GBP/USD Current price: 1.4011
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The GBP/USD pair jumped above the 1.4000 level ahead of the US opening, helped by a sharp downward move in the EUR/GBP, as the common currency continues to be the weakest currency among majors. The Pound managed to advance, despite the UK Construction PMI fell in February to 54.2, its lowest in 10 months. Currently holding on to gains, the 1 hour chart shows that the pair has advanced above a mild bullish 20 SMA, albeit the technical indicators have lost upward strength, turning south from near overbought levels. In the 4 hours chart, the price has bounced once again from the 1.3900/10 region, where the 20 SMA holds flat, while the RSI indicator aims higher around 57 and the Momentum indicator turned lower within positive territory, indicating limited upward potential. Nevertheless, the pair needs to advance beyond 1.4040, the immediate resistance, to be able to extend its rally this Wednesday.
Support levels: 1.3960 1.3920 1.3875
Resistance levels: 1.4040 1.4090 1.4130
USD/JPY Current price: 114.36
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Losing upward potential. The USD/JPY pair advanced in the Asian session, extending its rally up to 114.55 following the release of an encouraging ADP survey, which showed the US private sector added 214K new jobs in February. Buying interest has anyway, diminished during the European session, as local stocks struggle to post gains. The 1 hour chart shows that the pair has been pretty much consolidating its latest gains, but the overall technical picture shows a strong lack of upward momentum, as the technical indicators are pretty much flat. In the same chart however, the 100 SMA heads higher above the 200 SMA, limiting chances of a stronger decline. In the 4 hours chart, the latest rally stalled well below the 38.2% retracement of its latest daily decline at 115.05, the level to beat to see a more constructive stance. In this last time frame, the Momentum indicator continues to head north within bullish territory, but the RSI is already turning lower from near overbought levels, in line with the shorter term tone.
Support levels: 114.10 113.65 113.30
Resistance levels: 114.60 115.05 115.50
AUD/USD Current price: 0.7129
View Live Chart for the AUD/USD
The AUD/USD pair jumped higher at the beginning of the day, after the Australian real GDP expanded by a stronger than expected 0.6% Q/Q in Q4, resulting in a 3.0% annual gain, quite impressive figures given the commodity price crash and general global financial market conditions. But the rally stalled at 0.7243, where selling interest has been containing advances ever since the year started. The pair retreated down to 0.7200 from where it bounced back, although good US data has contained the advance. Technically, the 1 hour chart shows that the price has bounced from a sharply bullish 20 SMA, maintaining the risk towards the upside, albeit the technical indicators in the mentioned time frame are turning south ahead of the US opening. In the 4 hours chart, a positive outlook prevails as the price accelerated higher beyond its 20 SMA, while the technical indicators are turning back higher well above their mid-lines.
Support levels: 0.7200 0.7160 0.7115
Resistance levels: 0.7260 0.7300 0.7340
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