EUR/USD pair – Hourly chart
The EUR/USD pair failed yet another time yesterday to sustain gains above 1.2580 levels and ended marginally higher at 1.2543 levels. The pair is trading weak today around 1.2530 with the daily RSI bearish at 47.50 levels. Moreover, the hourly chart shows the pair failed to breach the inverted head and should neckline resistance located at 1.2578. The hourly RSI has just dipped below 50.00 levels, indicating a possibility of further fall in the pair. However, the bullish crossover between the 5-day and the 10-day moving average on the daily chart is likely to ensure that the losses remain capped around the support located at 1.25 levels. With preliminary PMI readings across Eurozone expected to show an improvement in the economic activity, a fresh demand for the Euros can be anticipated around 1.25 levels. However, EUR bulls need a convincing close above 1.2580 levels to take the pair towards the 50-SMA level located at 1.2662.
GBP/USD pair – Daily Chart
The GBP/USD bounced-off once again from the support located at 1.56 to finish higher at 1.5676 levels yesterday. Fresh signs of weakness are evident as the pair trades around 1.5650 levels, with the daily RSI bearish at 31.10 levels. Moreover, the pair faced rejection near the trend line resistance at 1.5690 earlier today. Meanwhile, the hourly chart shows, the RSI has turned bearish at 42.32 levels, indicating a further room for a decline. However, losses in the pair are likely to be capped around support at 1.56 levels. With the UK retail sales number expected to improve in October, a fresh demand for Pounds can be anticipated on dips. A strong UK retail sales number is likely to push the pair towards 1.5720 and 1.5740 levels. Meanwhile, a break below 1.56 levels may accompanied by a weak retail sales figure shall open doors for a sell-off towards 1.5550 levels.
EUR/GBP – Daily Chart
The EUR/GBP pair took a breather yesterday after a 200-pip rally in a week’s time. The pair ended lower yesterday at 0.8001, after failing to breach the falling trend line (Aug 2013 – till date) resistance located at 0.8026. However, a fresh buying interest is seen today as the pair advanced to 0.8013 levels from the support of 5-SMA located at 0.7997 levels. Moreover, the EUR bulls would have to wait and see if the pair manages to rise above the falling trend line resistance and the 200-DMA resistance located at 0.80274 and 0.8053 respectively. Also a convincing daily close above 0.8045, which happens to be the neckline resistance of the double bottom formation, shall open doors for 0.82 levels. However, fresh demand for Euros can be anticipated only above the 200-DMA level of 0.8053. Meanwhile, a repeated failure to breach the resistance zone of 0.8025-0.8053 shall see a renewed sell-off towards 0.78 levels.
GBP/JPY – Hourly chart
The GBP/JPY ended at a fresh six-year high of 184.969, breaching the recent highs of 184.335 and 184.68 on its way up. The pair extended gains today to trade at 185.70 levels with the daily RSI overbought at 73.00 levels. Moreover, the pair risks forming a bearish price-RSI divergence if the daily candle falls into the red today. Meanwhile, the hourly chart shows the pair faced rejection at 186.00 levels twice since the Asian session. Given the overbought nature of the daily as well as the hourly RSI, the pair is more likely to see a correction. However, a bearish move would be confirmed once the pair dips below 184.33 levels. In such a case, the losses could be extended to 183.00 levels. Till then, the upside momentum is likely to persist.
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