EUR/USD: recovery fueled by poor US Goods Orders

EUR/USD Current Price: 1.1310

The greenback came under selling pressure at the London opening, and the EUR/USD pair advanced up to 1.1299, from where it quickly retreated, on strong selling interest aligned around the level. Nevertheless, the pair remained range bound ahead of the release of US Durable Goods Orders figures for March, which came in below expected, posting a modest growth of 0.8% in March. The core reading, excluding transportation, fell by 0.2%, missing expectations of a 0.5% advance. US bad news sent the dollar back down across the board, and the EUR/USD pair extended its advance a couple of pips above the 1.1300 level, and is now poised to continue advancing, as in the 1 hour chart, the price has now extended above all of its moving averages, whilst the technical indicators head north after bouncing from their mid-lines. In the 4 hours chart, the technical bias is also bullish, as the technical indicators have accelerated their advances after surpassing their mid-lines. The pair has an immediate resistance at 1.1315, the 23.6% retracement of the latest bullish run, and further gains beyond it should keep the rally going during the upcoming US session.

Support levels: 1.1270 1.1230 1.1200

Resistance levels: 1.1315 1.1340 1.1380

GBP/USD Current price: 1.4601

View Live Chart for the GBP/USD

The British Pound surged to a fresh 2-month high against the greenback of 1.4577, and held nearby ahead of US data, which missed expectations, and sent the GBP/USD pair above the 1.4600 level for the first time since February 4th. Latest Sterling demand is the result of a constant anti-Brexit rhetoric from UK policy makers, and polls showing that those voting to leave are now less than a 30%. The short term technical picture is bullish, as in the 1 hour chart, the price is bouncing from a strongly bullish 20 SMA, whilst the technical indicators resumed their advances within bullish territory. In the 4 hours chart, the RSI indicator heads north around 76, while the Momentum indicator also heads strongly higher near overbought levels, supporting some additional gains up to the 1.4660 region.

Support levels: 1.4585 1.4550 1.4520

Resistance levels: 1.4610 1.4660 1.4700

USD/JPY Current price: 110.92

View Live Chart for the USD/JPY

Wait-and-see mode ahead of FED and BOJ. The USD/JPY pair continues trading around the 111.00 figure, pretty contained within a tight range ahead of the FED and BOJ's economic policy decisions. Investors have choose to remain side-lined due to the high levels of uncertainty both events generate, and is unlikely that the pair will move too far away from the current region during the upcoming sessions. In the meantime, the technical picture is bearish, as the indicators have turned lower after failing to overcome their mid-lines, albeit the 100 SMA continues heading higher below the current level. In the 4 hours chart, the price is still struggling around a bearish 200 SMA, while the Momentum indicator heads nowhere around its 100 level, and the RSI aims higher around 58. The pair has an immediate support at 110.65, and a break below it should trigger stops and fuel the decline towards the 110.00 region, while only above 111.40 the pair will begin to look more constructive in the short term.

Support levels: 110.65 110.30 109.80

Resistance levels: 111.40 111.90 112.30

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