EUR/USD: oil continues to lead the way

EUR/USD Current Price: 1.1242

The EUR/USD is back on its bullish track this Tuesday, with oil prices coming under pressure, as WTI futures seem unable to rally beyond $30.00 a barrel. The common currency suffered a short lived set back early Europe, following worse than expected German data. In the country, German trade balance for December resulted with a surplus of €18.8B against expectations of €20.2B, while imports and exports decline by 1.6% each. Industrial production in the country fell during the same month by 1.2%, indicating the EU's largest economy continues to slow its growth. But the pair is currently extending beyond its former weekly high around 1.1245, and poised to extend its advance in the short term, as in the 1 hour chart, the price recovered quickly above a bullish 20 SMA, whilst the technical indicators head north well above their mid-lines. In the 4 hours chart, the Momentum indicator is bouncing from its mid-line, while the RSI heads higher near 70, as the price held above a bullish 20 SMA on its intraday deep.

Support levels: 1.1245 1.1200 1.1160

Resistance levels: 1.1290 1.1335 1.1380

GBP/USD Current price: 1.4409

View Live Chart for the GBP/USD

The GBP/USD pair trades lackluster around the 1.4400 figure, having saw a spike up to 1.4484 during the past Asian session, as the dollar was under strong selling pressure. The Pound however, was unable to sustain gains, in spite of the better-than-expected UK trade balance data, as it came in at £-2.709B from a previous revised £-4.031B in December. Technically, the 1 hour chart shows that the price is below a flat 20 SMA, while the technical indicators have no directional strength within bearish territory. In the 4 hours chart, the 20 SMA turned south above the current level, while the technical indicators accelerated their declines within bearish territory, all of which supports some further declines, particularly on a break below 1.4350, Monday's low and the 23.6% retracement of the latest weekly decline.

Support levels: 1.4395 1.4350 1.4315

Resistance levels: 1.4460 1.4490 1.4530

USD/JPY Current price: 114.92

View Live Chart for the USD/JPY

Next long term target at 112.50. The USD/JPY pair trades at its lowest in over a year, as the Japanese yen strengthened on the back of rising risk aversion during Asian hours. The pair fell down to 114.20 before bouncing over 100 pips intraday, but is unable to sustain gains beyond the 115.00 level, and seems ready to resume its decline. The safe-haven currency soared against all of its major rivals, as worldwide stock plummeted at the beginning of the week, on increasing fears of a global economic slowdown. Technically, the 1 hour chart shows that the 100 SMA has declined alongside with the price, currently acting as a resistance around 116.60, while in the same chart, the technical indicators have corrected extreme oversold readings, and resumed their declines after testing their mid-lines, supporting further declines. In the 4 hours chart, the technical indicators have resumed their declines near oversold levels after a limited upward correction, also favoring a continued decline for this Tuesday.

Support levels: 114.65 114.20 113.75

Resistance levels: 115.10 115.55 115.90

AUD/USD Current price: 0.6983

View Live Chart for the AUD/USD

The AUD/USD pair plummeted to 0.6972 mid European session, accelerating its decline after breaking below the 0.7000 psychological level, and tracking oil's prices. The pair trades at its lowest since Jan 26, accumulating already 100 pips towards the downside ever since the day started. Short term, the 1 hour chart shows that the 20 SMA has turned sharply lower far above the current level, while the technical indicators are losing their bearish strength within oversold territory, far from suggesting a reversal in the ongoing bearish trend. In the 4 hours chart, the negative momentum is quite strong according to technical readings, with the pair poised to extend its decline down to the 0.6900 region.

Support levels: 0.6970 0.6935 0.6900

Resistance levels: 0.7000 0.7040 0.7085

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