EUR/USD Current Price: 1.1222
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The American dollar maintained its bullish bias during the first half of the day, underpinned by a couple of economic reports early US session that pointed to some steady economic growth in the country. According to official data, Housing starts rose 5.2% in February, beating expectations, although Building Permits slipped 3.1%. Inflation in the same month, fell 0.2% as expected, but core readings surprised towards the upside posting solid gains up to 2.3% compared to a year before. Anyway, the market was all about the US Federal Reserve, and what they offered was not what the market was expecting. Policy makers see now just two rate hikes in 2015 from previous four, while they also cut the GDP forecast for 2016 down to 2.2% from 2.4%. The dollar was sold-off across the board, and the EUR/USD soared beyond 1.1217, the post-ECB high, with Janet Yellen´s press conference, indicating that major concerns are still abroad, but also that some participants don't longer saw the risk balanced, as some saw them tilted towards the downside.
The EUR/USD pair retreated from the 1.1226 posted with the news, but holds around the 1.1200 level, with strong bullish implications coming from technical readings, given that the pair has extended its monthly advance to a fresh high, while in the 4 hours chart, the strong advance has sent price well above its moving average, and left indicators heading sharply higher within bullish territory. Given the strong advance in Wall Street, Asian share markets will likely surge, maintaining the common currency supported. A major static resistance level stands around 1.1245, with a break beyond it exposing the pair to an advance towards 1.1300 this Thursday.
Support levels: 1.1160 1.1120 1.1065
Resistance levels: 1.1245 1.1290 1.1330
EUR/JPY Current price: 126.34
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The EUR/JPY pair gained ground after a dovish FED, reaching 126.44, as JPY gains were limited on the back of soaring stocks. Despite trading in the green, the pair remains within Tuesday's range, having posted a lower high daily basis, which suggests the upside is still limited. In the shorter term, the 1 hour chart shows that the price is unable to advance above a bullish 100 SMA, while the technical indicators are losing upward strength within positive territory, far however, from suggesting a downward move ahead. In the 4 hours chart, the technical indicators head higher, with the RSI indicator already above its mid-line, but the price retreating form a bearish 200 SMA, in line with the shorter term outlook. Nevertheless, additional gains beyond 126.45 should see the pair extend its advance towards the weekly high, at 127.30.
Support levels: 125.80 125.40 125.00
Resistance levels: 126.45 126.90 127.30
GBP/USD Current price: 1.4244
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The British Pound weakened further against its major rivals, plummeting to 1.4052 against the greenback ahead of the FOMC meeting. The UK currency was sell-off mode last Tuesday as the latest ORB opinion poll showed that 47% wanted to remain within the EU compared to 49% who wanted to leave. The UK employment report resulted soft, with more jobs than-expected added in the three months to January, the unemployment rate steady at 5.1% and a tepid advance in wages. The data however, was not enough to save the Sterling. But the FED was, and the GBP/USD pair jumped to 1.4273, stalling its advance around the 200 EMA in the 4 hours chart, but holding above 1.4215, the 38.2% retracement of this year´s slide and the immediate support. In the mentioned time frame, the 20 SMA heads south a handful of pips below the mentioned high, while the technical indicators bounced sharply from oversold levels, and are currently crossing their mid-lines towards the upside, suggesting the recovery may extend, particularly on an upward acceleration beyond the mentioned daily high.
Support levels: 1.4215 1.4170 1.4125
Resistance levels: 1.4275 1.4310 1.4360
USD/JPY Current price: 112.39
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The Japanese yen slid during the Asian session, following dovish comments from BOJ's Governor Kuroda, who said that there are chances that the Central Bank will cut rates further into negative territory if needed, in a speech before the local parliament. The USD/JPY pair recovered up to 113.81, before plummeting to a fresh weekly low, with US treasury yields coming under pressure after the FOMC's announcement. The 2-year treasury yield fell to 0.912% from near 0.99%. The pair approaches the base of its latest range in the 112.10 region, and seems poised to extend its decline, given that in the 1 hour chart, the technical indicators head south almost vertically, despite being in extreme oversold territory. In the 4 hours chat, and after a period of consolidation around their mid-lines, the technical indicators resumed their declines, now heading sharply lower within bearish territory. Former lows around 112.60 are the immediate resistance, yet at this point, only a recovery above 113.00 will take out some of the bearish pressure from the pair.
Support levels: 112.10 111.70 111.30
Resistance levels: 112.60 113.00 113.50
AUD/USD Current price: 0.7420
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It took the Aussie one hour to erase all of its last two-day decline against the greenback, with the pair soaring to 0.7560 after flirting with the 0.7400 level earlier today. The Australian dollar tracked stocks and commodities in its way higher, after the FED triggered a dollar's sell-off with quite a dovish stance. Ahead of the Asian opening, the pair has recovered its previous bullish tone, and seems poised to re-challenge the 0.7600 level. In the 1 hour chart, the technical indicators are losing partially their upward strength in overbought territory, but with the price far above its 20 SMA and pressuring the highs, the possibility of a bearish correction is practically null. In the 4 hours chart, the technical indicators have crossed their mid-lines towards the upside and maintain their strong upward slopes as the price crossed above a horizontal 20 SMA, now around 0.7500 with strong volume, supporting the shorter term view.
Support levels: 0.7500 0.7460 0.7420
Resistance levels: 0.7560 0.7600 0.7645
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