EUR/USD Current Price: 1.1264
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The EUR/USD pair trades uneventfully this Wednesday, as investors wait for the Yellen's testimony before the Congress. The FED's head is due to testify on the Semiannual Monetary Policy Report before the Congress, and generally speaking, the market is expecting a dovish stance, given the ongoing turmoil around financial markets. She also is expected to reiterated that somehow, economic growth has slowed down by the ends of 2015, and that further rates hikes are data-dependant, which could sent the dollar back lower across the board.
Technically, the EUR/USD hovers around the 1.1260 level, with a neutral-to-bearish stance in the short term, as in the 1 hour chart, the price is below a horizontal 20 SMA, while the technical indicators head slightly lower, right below their mid-lines. In the 4 hours chart, the price is far above its 20 SMA, while the technical indicators have retreated some from near overbought levels. Nevertheless, upcoming moves will depend on how hawkish, or dovish, Mrs. Yellen is today.
Support levels: 1.1245 1.1200 1.1160
Resistance levels: 1.1290 1.1335 1.1380
GBP/USD Current price: 1.4563
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The GBP/USD pair reached a fresh weekly high of 1.4577, and stands nearby, despite extremely disappointing UK data. The United Kingdom released today its industrial and manufacturing output for December, showing a sharp decline in production by the end of 2015. The release sent the pair down to 1.4438, but it quickly bounced back and broke higher, signaling increasing buying interest. Short term, the 1 hour chart shows that the price is now above a bullish 20 SMA, while the technical indicators are losing upward strength near overbought levels, not yet suggesting the pair may ease back. In the 4 hours chart, the pair presents a limited upward tone, as the price is now above its 20 SMA that anyway remains bearish, and above the 200 EMA, while the technical indicators aim slightly higher around their mid-lines, showing not enough strength to confirm a new leg higher.
Support levels: 1.4525 1.4490 1.4450
Resistance levels: 1.4580 1.4620 1.4660
USD/JPY Current price: 114.97
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Quiet after BOJ's jawboning. The USD/JPY pair consolidates below the 115.00 figure this Wednesday, having bounced during the past Asian session once again from the 114.20 region, the bottom of its recent decline. Early during the European morning, there were some talking making the rounds on a verbal intervention from the Bank of Japan, with the Central Bank checking prices among interbank dealers. The pair saw a limited spike afterwards, but it quickly returned mid-range, as investors can't care less about jawboning. The static mode is most likely due to the upcoming Yellen's testimony than whatever the BOJ may say. Anyway, and from a technical point of view, the 1 hour chart shows that the price is well below a bearish 100 SMA, currently around 116.10, while the technical indicators lack conviction around their mid-lines. In the 4 hours chart, the RSI has corrected oversold readings, but remains far below its mid-line, while the Momentum indicator heads sharply lower below the 100 level and the moving averages are well above the current level, all of which maintains the risk towards the downside.
Support levels: 114.65 114.20 113.75
Resistance levels: 115.10 115.55 115.90
AUD/USD Current price: 0.7108
View Live Chart for the AUD/USD
The AUD/USD pair advances as risk aversion eased during the European morning, with local share markets advancing for the first time in the week. The pair recovered above the 0.7100 level and hovers around it, presenting a short term bullish tone as in the 1 hour chart, the price is above a bullish 20 SMA, while the technical indicators resumed their advances within positive territory. In the 4 hours chart, the price is advancing above its 20 SMA and 200 EMA, while the RSI indicator heads higher above its mid-line. The Momentum indicator however, remains flat in neutral territory. Further advances beyond 0.7130 are required to confirm a new leg higher, with selling interest waiting around the 0.7200 figure.
Support levels: 0.7090 0.7040 0.7000
Resistance levels: 0.7130 0.7170 0.7200
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