EUR/USD: not-so-dovish Yellen after all

EUR/USD Current Price: 1.1253

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The American dollar found some support from FED's Yellen this Wednesday, although her comments were not enough to send it into the green, except against the EUR. In her first day of testimony before the Congress, the US Central Bank's head said that "financial conditions in the United States have recently become less supportive of growth," but she also reiterated that they are ready for further tightening, should economic conditions allow. Despite the less dovish-than-expected stance, the greenback fell during the American afternoon, while stocks trimmed some of their early gains, and oil prices continued declining.  Markets however, continue trading on a doom mode over what the future to worldwide economies, and seems that the so long awaited testimony won't be able to affect the ongoing dollar's weakness. 

As for the EUR/USD, the pair fell down to 1.1160 before recovering above 1.1200, but is currently unable to rally beyond former highs around 1.1245, the immediate resistance. Nevertheless the technical picture is still bullish, as in the 4 hours chart, the price has quickly recovered above a mild bullish 20 SMA, while the technical indicators resumed their advance within positive territory, after a limited downward corrective move. The line in the sand is the 1.1120 as only below this level the pair can be at risk of further declines. In the meantime, investors are generally targeting the 1.1460 region, a major static resistance that contained the upside for most of this past 2015. 

Support levels: 1.1200 1.1160 1.1120

Resistance levels: 1.1245 1.1290 1.1335 

EUR/JPY Current price: 128.18

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Yen's bulls are dominating all of the Japanese currency crosses, and the EUR/JPY pair plummeted to 127.77 during the American afternoon, now back above the 128.00, but overall bearish. The sharp advance of the JPY over these last few days have triggered some speculation over BOJ's intervention, but nothing beyond verbal at the time being. With a local holiday ahead, the 1 hour chart shows that the price has extended further below its 100 and 200 SMAs, while the technical indicators are posting tepid recoveries from oversold levels, and the price holds below former lows, all of which suggests some consolidation before a new leg south. In the 4 hours chart, the picture is less clear, given that the 100 SMA heads higher above the 200 SMA, both above the current level, while the technical indicators have bounced from near oversold levels. 

Support levels: 127.70 127.25 126.80 

Resistance levels: 128.40 128.90 129.35

GBP/USD Current price: 1.4500

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The GBP/USD pair ends the day with gains, in spite of poor industrial output data in the UK released earlier in the day. According to December figures, Britain had its worst quarter in almost three years by the end of 2015, as manufacturing production fell monthly basis by 0.2%, and 1.7% compared to a year before. Industrial production dropped by 1.1% compared to November, and fell by 0.4% on a year-on-year basis. Also, the NIESR GDP estimate showed a 0.4% growth in the three months ending January 2015, after a 0.5% advance in the three months ending in December. The pair trades around the 1.4500 figure after being as high as 1.4577, still meeting intraday selling interest in the 1.4520/30 region, where the pair has the 38.2% retracement of its latest weekly decline. Technically, the 1 hour chart shows that the price is advancing above a mild bullish 20 SMA, while the technical indicators are heading north after bouncing from their mid-lines, supporting some further gains, should the price finally break above the mentioned resistance. In the 4 hours chart, the Momentum indicator head strongly higher, while the 20 SMA has provided short term support ever since the day started, currently at 1.4460.

Support levels: 1.4460 1.4415 1.4370  

Resistance levels: 1.4535 1.4580 1.4620 

USD/JPY Current price: 113.94

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The Japanese yen gained further momentum against all of its major rivals, with the USD/JPY plummeting to 113.72, level last seen early November 2014. The pair attempted to recover ground earlier in the day, advancing up to 115.19 as market talks pointed out that the BOJ was calling interbank dealers to "check prices," a form of verbal intervention that usually helps the pair rising. Nevertheless, the rally was short lived, and this fresh lows are clearly showing that bears are in control.  Short term, the technical outlook is still bearish, as the technical indicators have managed to post some upward corrections before resuming their declines, now approaching oversold territory, with a limited downward momentum, while the price continues developing well below its moving averages. In the 4 hours chart, the Momentum indicator hovers with no clear direction well below its mid-line, while the RSI indicator heads south at 29, indicating there's still room for additional declines. 

Support levels: 113.75 113.30, 112.90

Resistance levels: 114.20 114.65 115.20 

AUD/USD Current price: 0.7098

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The AUD/USD pair started the day advancing up to 07124, but  failed to consolidate above the level and pulled back at the beginning of the New York session, as the dollar recovered ground across the board following Fed's Yellen testimony before the Congress. Australia will release its consumer inflation expectations for February during the upcoming session, previously at 3.6%. Holding into gains, the pair has a short term bullish tone, as in the 1 hour chart, the price is firmly above a bullish 20 SMA, whilst the technical indicators present upwards slopes above their mid-lines. In the 4 hours chart, the 20 SMA and the 200 EMA providing an immediate support around 0.7070, while the technical indicators aim higher within neutral territory, lacking enough strength to confirm a new leg higher. The pair needs to advance above the 0.7135 region, a Fibonacci resistance, to be able to extend its advance this Thursday.

Support levels: 0.7070 0.7030 0.7000 

Resistance levels: 0.7135 0.7170 0.7200