EUR/USD Current price: 1.2302
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While the European session was fulfilled with fundamental data, majors barely reacted as investors wait for central banks. The FED will give some clues later today, although I believe we need to wait for ECB tomorrow to see a clearer picture in the EUR/USD. In the meantime, Manufacturing PMI for several European economies came out below expectations and more over, below the 50 mark, while US ADP reading showed a positive 163K. Local share markets are under pressure while US futures are slightly up, giving no much clues at the time being. The EUR/USD trades unchanged from a technical point of view, steady around 1.2300 and with indicators flat in the hourly and the 4 hours chart, with a short term range of 1.2250/1.2335 since early Tuesday; a clear break of the extremes is needed to trigger a clearer short term trend, while the long term bearish one will likely resume only below 1.2210.
Support levels: 1.2280 1.2250 1.2210
Resistance levels: 1.2335 1.2390 1.2420
GBP/USD Current price: 1.5621
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Worse than expected housing and PMI readings weight on Pound, that fell to 1.5610 ahead of the US opening against the greenback, holding a strong bearish tone coming from technical readings: the hourly chart shows price now bouncing slightly higher, although indicators head south below their midlines and 20 SMA gains bearish slope above current price. In the 4 hours chart, price found temporal support in key 200 EMA around mentioned daily low, while indicators gain bearish tone supporting the shorter term view: a clear break below the level is needed to confirm a continuation rally towards the 1.5550 magnetic area, while only above 1.5660 the pair may attempt a short term recovery towards 1.5700 price zone.
Support levels: 1.5610 1.5585 1.5550
Resistance levels: 1.5660 1.5700 1.5730
USD/JPY Current price: 78.20
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The USD/JPY reached 77.90 support early Asian session yet unable to break and favored by positive US numbers, the pair managed to bounce slightly up. Still trading in a tight range, the hourly chart holds its neutral stance with indicators flat around their midlines. In bigger time frames however, price is being capped below 20 SMA while the distance between 100 and 200 SMA’s widens, favoring the downside at the time being. 77.65 is still the main bearish target as per being past June monthly low, while steady losses below this last, will likely push the BOJ to act later today.
Support levels: 78.10 77.90 77.65
Resistance levels: 78.30 78.70 79.00
AUD/USD: Current price: 1.0518
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The AUD/USD continues its consolidative stage near highs, having extended its gains a few pips higher, up to 1.0541 on Chinese positive PMI past Asian session. The hourly chart shows price above 20 SMA while indicators hold in positive territory, lacking strength at the time being. In the 4 hours chart, indicators bounce higher form their midlines, while price found support at a still bullish 20 SMA. The bullish tone remains strong, although bearish divergences are still seen in the 4 hours chart, suggesting a downside corrective movement could take place over the upcoming session.
Support levels: 1.0510 1.0480 1.0440
Resistance levels: 1.0550 1.0600 1.0640
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