EUR/USD: Failure higher puts new lows in focus

Currency Majors Technical Perspective

EUR/USD Current price: 1.2198

The EUR/USD nose dived amid strong risk aversion, generated by Spain and Italy: yields are record highs, stocks strongly down along with commodities, and US futures point for a negative opening below yesterdays’ low. The EUR/USD after repeatedly failing at the 1.2300 area, has finally breached the 1.2200 mark, trading also below a short term ascendant trend line coming from 1.2161, now around 1.2220 and immediate resistance in case of pullbacks. The hourly chart shows indicators strongly bearish in oversold territory with no aims of reverting the slide, while in the 4 hours chart

Support levels: 1.2185 1.2160 1.2120

Resistance levels: 1.2220 1.2250 1.2280

GBP/USD Current price: 1.5664

View Live Chart for the GBP/USD (Select the currency)

Pound fell as low as 1.5653 on risk sentiment, gaining bearish potential in the hourly chart as price stands below its 20 SMA and indicators advance south. In the 4 hours chart, bearish divergences with momentum grow with the indicator again approaching its midline after a lower high when price reached a fresh one at 1.5736 early Europe; in the same time frame, 20 SMA offers support right above mentioned low, so clear break below 1.5650 is needed now, to see the pair extending its slide towards the 1.5600/10 area, where 200 EMA will offer dynamic support.

Support levels: 1.5650 1.5605 1.5570

Resistance levels: 1.5735 1.5770 1.5880

USD/JPY Current price: 78.54

View Live Chart for the USD/JPY (select the currency)

Mostly unchanged despite market woes, the USD/JPY consolidates around the weekly low set at 78.42 maintaining its bearish tone according to technical readings: the hourly chart shows price below 20 SMA while 100 and 200 SMA’s gain bearish slope well above current price, and indicators stand in negative territory. In the 4 hours chart indicators also head lower below their midlines, helping keep the upside limited. Pair needs to advance above 78.80 at least to ease the strong bearish tone, quite unlikely at this point.

Support levels: 78.40 78.10 77.85

Resistance levels: 78.80 79.00 79.20

AUD/USD: Current price: 1.0392

View Live Chart for the AUD/USD (select the currency)

The AUD/USD fell below the 1.0400 mark, although the Aussie recent strength remains intact despite ongoing risk aversion. Yesterdays’ news that the Bundersbank is ready to invest in Australian denominated assets keeps the currency bid across the board. The hourly chart shows an increasing bearish tone with indicators heading south and price developing below 20 SMA, although expect the downside to remain limited with 1.0360, 61.8% retracement of this year all, as main support for the upcoming hours

Support levels: 1.0385 1.0360 1.0330

Resistance levels: 1.4010 1.0440 1.0470

New to Forex? Visit our Glossary!

Today's new term is, Certificate.

Published On Fri, Jul 20 2012, 13:22 GMT Previous entries

Valeria Bednarik

Follow Follow my activity on FXstreet.com FXstreet.com website

Valeria Bednarik was key speaker at the FXstreet.com International Traders Conference in October 2009 - Barcelona. Valeria Bednarik has been an active trader since 2003, specializing in the International Foreign Exchange Market.

More articles by this author

Also Read

Fed, BoJ, and Carney alike won't be killjoys for now
Danske Bank A/S
GBP/USD 1H Chart Emerging Pattern: Channel Down
Dukascopy Bank SA
Daily Technical Analysis
Alpari (UK)
EUR/USD steps higher
Dukascopy Bank SA
EUR/USD to reach 1.2837 in 13 hours
Autochartist

Advertisement

Legal disclaimer and risk disclosure

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.