EUR/USD: still bullish, more gains above 1.1310

EUR/USD Current Price: 1.1316

The dollar gained some ground at the beginning of the European session, fueled by some comments of ECB's Praet, saying that the European Central Bank has room to cut rates further. The EUR/USD pair fell down to 1.1255, where dollar's bears quickly took their chances. The pair bounced back towards the current 1.1290 region ahead of the US opening, with little room to extend its decline in the short term, given that in the 1 hour chart, the technical indicators are recovering ground within negative territory, whilst the price approaches its 20 SMA around 1.1310, the immediate resistance. In the 4 hours chart, the retracement was just enough for technical indicators to correct extreme overbought readings, but are currently regaining the upside as the price remains far above a bullish 20 SMA, all of which supports some further gains for this Friday.

Support levels: 1.1245 1.1200 1.1160

Resistance levels: 1.1310 1.1340 1.1375

GBP/USD Current price: 1.4489

View Live Chart for the GBP/USD

The GBP/USD pair traded as low as 1.4409 this Friday, but has quickly recovered the lost ground, and approaches the high posted this Thursday at 1.4502, a clear indication of where market's interests are. With no data released in the UK, the pair is being driven by dollar's weakness, and seems it will managed to extend its weekly rally beyond the mentioned high, as in the 1 hour chart, the price has recovered above its 20 SMA, whilst the technical indicators have crossed their mid-lines towards the upside, and maintain clear bullish slopes. In the 4 hours chart, the Momentum indicator heads north at fresh highs within extreme overbought territory and after a limited downward correction, while the RSI indicator also turned higher around 70, in line with the shorter term outlook.

Support levels: 1.4445 1.4410 1.4370

Resistance levels: 1.4510 1.4550 1.4590

USD/JPY Current price: 111.49

View Live Chart for the USD/JPY

Downward risk prevails. The USD/JPY pair remains under pressure, trading a few pips above its daily opening after falling down to 111.05 earlier in the day. Yen's strength undermined the Nikkei that closed in the red, but the positive tone of European equities is helping the pair in advancing some. Nevertheless, the upside seems limited beyond some short term rallies. Technically, the 1 hour chart shows that the technical indicators are posting tepid advances within neutral territory, but that the 100 SMA has accelerated its decline below the 200 SMA, well above the current level. In the 4 hours chart, however, the Momentum indicator keeps heading south well below its mid-line, while the RSI indicator hovers around 37, as the price consolidates below 111.65, the immediate resistance. Some further gains above the level can see the pair testing the 112.00 region, but selling interest will likely surge on spikes. Below 111.05 on the other hand, the pair can resume its decline and approach the 110.00 level before the day is over.

Support levels: 111.05 110.65 110.20

Resistance levels: 111.65 112.00 112.35

AUD/USD Current price: 0.7628

View Live Chart for the AUD/USD

The AUD/USD pair has retraced from a fresh multi-month high reached in Asian hours at 0.7679, trading slightly lower in the day, but with strong weekly gains, in line with the dominant bullish trend. Short term, the 1 hour chart shows that the price is below its 20 SMA, but that the technical indicators are heading slightly higher around their mid-lines, lacking upward strength at the time being. In the 4 hours chart, however the technical bias is bullish, with the price above a strongly bullish 20 SMA and the technical indicators turning higher after a limited downward correction whiten overbought levels.

Support levels: 0.7615 0.7580 0.7550

Resistance levels: 0.7690 0.7730 0.7780

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