EUR/USD Current Price: 1.1430
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Dollar's selling mode continued during the first half of the day, as Asian shares plummeted, dragging the greenback alongside. The EUR/USD pair advanced up to 1.1413, but retreated towards the 1.1380 region, where it consolidated ahead of US data. In the EU, unemployment fell in March to 10.2%, the lowest rate recorded in the region since August 2011. Inflation, however, fell in the region according to April preliminary figures, down 0.2% compared to a year earlier, back in to deflationary territory. core inflation was 0.8% after resulting at 1.0% in March.
US data put the greenback under renewed selling pressure, as personal spending rose less than expected, in March, up by just 0.1%, despite incomes increased 0.4%, suggesting consumers are choosing to save their money. The employment cost index for the first quarter of this year came in at 0.6%, matching market's expectations.
The EUR/USD pair jumped beyond 1.1430, and is poised to extend its advance up to the major resistance at 1.1460, as in the 1 hour chart, the technical indicators have turned sharply higher whilst the price accelerated beyond a bullish 20 SMA. In the 4 hours chart, the technical indicators continue to lack upward momentum despite holding within positive territory, whilst the 20 SMA has crossed clearly above the 100 SMA well below the current level, also supporting some additional gains for this last day of the week.
Support levels: 1.1400 1.1370 1.1335
Resistance levels: 1.1460 1.1500 1.1535
GBP/USD Current price: 1.4611
View Live Chart for the GBP/USD
The British Pound extended its rally against the greenback up to a fresh 2-month high of 1.4663, and after a retracement down to 1.4575, the pair regained its upward strength, maintaining the overall bullish strength seen since the week started. The pair however, remains below its daily high after the release of poor US data, as attention centers in the EUR and the JPY, about to challenge critical levels. The GBP/USD pair 1 hour chart shows that the price is struggling to extend above a bullish 20 SMA, whilst the technical indicators head north above their mid-lines, something that at least, should keep the downside limited. In the 4 hours chart, the technical picture is neutral-to-bullish as the price bounced again from a bullish 20 SMA, but the momentum indicator heads nowhere around its 100 level, whilst the RSI is also flat, but around 65.
Support levels: 1.4590 1.4550 1.4510
Resistance levels: 1.4670 1.4710 1.4750
USD/JPY Current price: 107.21
View Live Chart for the USD/JPY
The USD/JPY pair plummeted to 106.89, its lowest since October 2014 during the Asian session, as the dollar remained weak after the release of poor GDP figures for the first quarter of 2016. The Nikkei plummeted on yen's strength, and European equities followed through, while US futures are poised to open lower, all of which should keep the yen supported. The risk of a BOJ's verbal intervention, however, is quite high. The pair bounced up to 107.35, but is currently retreating, as poor US data is not helping the greenback. Short term, the RSI indicator remains in oversold territory, whilst the Momentum indicator has stabilized below its 100 level, as the 100 and 200 SMA accelerate their declines well above the current level, all of which suggests some downward exhaustion but maintains the risk towards the downside. In the 4 hours chart, the technical indicators have lost bearish strength within extreme oversold territory, supporting some further consolidation before the next directional move.
Support levels: 106.90 106.60 106.20
Resistance levels: 107.35 107.80 108.10
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