EUR/USD Current price: 1.2259
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Summer vacations’ low volume along with central banks policy meetings due to take place late in the week, kept majors left us with a choppy Monday exception made by commodity currencies. The EUR/USD broke below the 1.2300 level early Asia, and fell as low as 1.2224 ahead of US opening, trading ever since around the 1.2250/60 price zone in a tight range. Stocks markets both in Europe and the US ended up the day barely unchanged, reflecting the huge amount of doubts investors have right now over the economic future of major economies. While seems hard the FED will give much clues on QE this month, the ECB is expected to launch some sort of facilities, to support latest Draghi’s comments. The lack of action in Europe could be a huge disappointment for Euro bulls, but as per now, is a wait and see while the pair ranges. The hourly chart shows a pretty neutral stance in the pair, with indicators hovering around their midlines and 20 SMA turning flat, while in the 4 hours chart a slightly bullish tone persists: price is finding support at a bullish 20 SMA while indicators lost upward momentum and hover around their midlines. Range between 1.2210 and 1.2330 will likely dominate the pair ahead of the mentioned major announcements.
Support levels: 1.2210 1.2180 1.2145
Resistance levels: 1.2270 1.2300 1.2330
GBP/USD Current price: 1.5704
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UK data again disappointed, with worse than expected readings for in the lending to individuals, mortgage approvals and realized sales. Lack of follow trough in past week optimism among investors did the rest, and the GBP/USD fell as low as 1.5670 before bouncing back to consolidate around 1.5700. The hourly chart shows price right above a directionless 20 SMA as indicators hover around their midlines, showing no actual strength. In the 4 hours chart indicators corrected extreme overbought conditions, while moving averaged hold a bullish tone below current price. The limited bullish tone will come under pressure if price gives up below the 1.5660 mark, immediate support, with scope then for a retest ok key 1.5550 price zone. A daily close well above strong midterm resistance at 1.5770 on contrary, will point for an upward extension near 1.60 before buying interest resurges.
Support levels: 1.5660 1.5620 1.5590
Resistance levels: 1.5730 1.5770 1.5810
USD/JPY Current price: 78.18
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The USD/JPY traded again in a sad 40 pips range, back heading south as the pair tested and hold near 78.10 daily low. The hourly chart, shows price didn’t need long to break back below 100 and 200 SMA’s that hold a bearish slope above current price; indicators are in negative territory, while 20 SMA gains bearish slope above current price, helping keep the upside limited. In the 4 hours chart, the technical outlook is also slightly bearish, although unless a clear break below 77.90, the slides will remain limited.
Support levels: 78.10 77.90 77.65
Resistance levels: 78.30 78.70 79.00
AUD/USD: Current price: 1.0493
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Aussie extended its advance to a fresh 4-month high of 1.0506, holding nearby since mid American afternoon. Building approvals in Australia expected strongly down at -14.6% from 27.3% up the previous month, may trigger some downside corrective movement, that will find strong support, and buying interest, around 1.0440 if reached. The hourly chart shows price above 20 SMA that gives short term support at the 1.0480 area, while indicators hold in positive territory. In the 4 hours chart momentum starts to give some bearish divergences although RSI heads north above 70, keeping the downside limited. Gains above 1.0510 on contrary will likely favor an upward continuation towards 1.0550, next resistance for the pair, ahead of key 1.0600 price zone.
Support levels: 1.0480 1.0440 1.0400
Resistance levels: 1.0510 1.0550 1.0600
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