EUR/USD Current price: 1.2398
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Dollar spent most of this Tuesday under pressure as stock rose both in Europe and the US, on hopes central banks will take action if needed. Boston Fed president Eric Rosengren, claimed that the FED needs to take "more substantive action than we've taken to date." Optimism fade by the end of the US session, with American indexes giving up ground and dollar finding a reason to bounce higher. The EUR/USD failed to extend gains beyond Monday high, ending the journey unchanged for the second day in a row reflecting the uncertainty market feels. The hourly chart shows price steadily losing momentum, trading back below 20 SMA although technical readings remain flat and mostly neutral. In the 4 hours chart indicators head lower from extreme overbought levels, suggesting a bearish correction may take place in the short term; however, price needs to clearly break below former strong resistance, now static support area around 1.2330/40 to confirm further slides ahead.
Support levels: 1.2370 1.2335 1.2300
Resistance levels: 1.2450 1.2490 1.2520
GBP/USD Current price: 1.5619
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Pound accelerated higher across the board early Europe, mounted on risk sentiment and better than expected manufacturing and industrial readings in the UK, sending the GBP/USD to an intraday high of 1.5683. Unable to sustain gains however the pair started a slow but steady slide back to the 1.5620 area where it stands early Asia. The hourly chart shows price below a still bullish 20 SMA while indicators start giving up the upside, still in positive territory. A short term ascendant trend line offers support now around 1.5590, where sellers may be back in control sending the pair towards 1.540/50 price zone. In the 4 hours chat, indicators head lower approaching their midlines, which confirms a need of a support break before further slides are seen.
Support levels: 1.5620 1.5590 1.5550
Resistance levels: 1.5660 1.5690 1.5730
USD/JPY Current price: 78.59
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The USD/JPY jumped back higher reaching 78.73 on higher US yields and ahead of BOJ monetary policy meeting starting today, yet again failed to break above 78.80 static resistance zone. The hourly chart shows the bullish tone losing momentum, yet bears are still not showing up: price holds near the highs and above a strongly bullish 20 SMA with the downside so far limited by 78.50 static support. In the 4 hours chart recent retracement erased early upward momentum, although only below mentioned support further downside pressure may be seen.
Support levels: 78.50 78.30 78.10
Resistance levels: 78.80 79.15 79.40
AUD/USD: Current price: 1.0556
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Australian dollar tested 1.0600 area against the greenback post RBA minutes, yet edged up lower in what seems a due correction for the pair after adding over 1000 pips in the past 2 months. The hourly chart shows price below a short term ascendant trend line broken mid American afternoon, while indicators head south below their midlines, with short term buyers aligned around 1.0540 price zone: a break below should open doors for another leg lower, aiming to test 1.0470 price zone. In the 4 hours chart, price is finding temporal support at a still bullish 20 SMA right below mentioned 1.0540 area, while indicators approach their midlines, upside down. While the long term trade will remain in place even in price nears 1.0360, a bearish leg seems now more likely than a break above the 1.0605 high.
Support levels: 1.0540 1.0500 1.0470
Resistance levels: 1.0580 1.0605 1.0640
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