Currency Majors Technical Perspective

EUR/USD Current price: 1.2722

Wednesday was signaled by increasing risk appetite since Asian opening that faded in the US afternoon. Pair approached key 1.2770/80 static resistance area, yet failed to extend above, despite stocks across the world had a quite positive day erasing most of past Tuesday loses.

Technically, the pair has still some bullish potential as long as above 1.2700 area, with hourly indicators heading north and price holding above 20 SMA; still stronger confirmations will be seen once above mentioned static resistance zone. 4 hours chart however, show no upwards strength after pair corrected its oversold condition; lose of 1.2660 past Tuesday low, should turn the pair lower favoring a retest of 1.2600/20 zone.

Support levels: 1.2660 1.2620 1.2580

Resistance levels: 1.2735 1.2775 1.2810

GBP/USD Current price: 1.5472

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Pound was favored today by market sentiment, rising as high as 1.5530 where the daily descendant trend line coming from past August 16th high around 1.5702 halted the rally. Retreat from that level has found support in the 200 EMA in the 4 hours chart around 1.5460, while indicators in both 1 and 4 hours charts had turned back south: lose of that level, should signal further downside pressure in the cross. Still movements are seen limited ahead of tomorrow’s BOE economic decision.

Support levels: 1.5460 1.5420 1.5370

Resistance levels: 1.5530 1.5570 1.5600

USD/JPY Current price: 83.85

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Pair managed to set a fresh low, this time at the 83.35 level, past June 1995 monthly low; capped under 84.10, pair holds a general bearish tone despite intraday bounce following a non reliable intervention rumor set to take place today in Japan. Technically, a break under 83.60 should favor a retest of mentioned low, followed later by the 83.00 zone. Above 84.10 pair could extend towards 84.40/50 zone, yet unless an intervention, there is little chances the safe haven currency loses ground.

Support levels: 83.50 83.35 83.00

Resistance levels: 84.10 84.40 84.90

AUD/USD Current price: 0.9182

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Australian dollar erased past Tuesday loses and managed to set a fresh intraday high barely under key 0.9200 resistance zone. Unemployment data to be release later today and expected positive, plus local share markets following the positive tone of US and Europe, could favor a break higher, towards 0.9240 immediate resistance zone.

Technical indicators support the bias holding some bullish strength above their midlines in the hourly chart, while 20 SMA also bullish holds a strong slope. Lose of 0.9140 again should signal a downside corrective movement, towards 0.9100 and 0.9070 later in the day.

Support levels: 0.9140 0.9100 0.9070

Resistance levels: 0.9200 0.9240 0.9270