EUR/USD Current price: 1.2361
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Quite active Wednesday following latest choppy sessions, saw the Euro as the only major losing ground against the dollar. Early European news, showing a slowdown in German industrial production, far from successful bond auctions and yields again on the rise sent the EUR/USD to a daily low of 1.2326 right before US opening bell. Stocks did not take long however in erase intraday gains in the US, favoring a dollar slide across the board. The EUR/USD closed the day to the downside, consolidating ahead of the huge hurdle of news to be release in Asia: employment figures in New Zealand and Australia, Chinese CPI and PPI and finally BOJ economic policy meeting outcome. For the EUR/USD, it will be a matter of levels: having hold above the 1.2330 static support area, a break below this level would scare bulls and favor further selling in the pair, with 1.2270/80 then at sight. A recovery above 1.2380 however, will favor another approach to key 1.2450 resistance zone. Technical readings in the hourly chart hold a limited bearish tone, with price standing right below its 20 SMA and indicators below their midlines, while in the 4 hours chart a slightly bearish tone is also present as indicators retreat from their midlines, yet a clearer intraday trend will surge only with a break of mentioned levels.
Support levels: 1.2320 1.2280 1.2250
Resistance levels: 1.2380 1.2410 1.2440
GBP/USD Current price: 1.5663
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The Pound soared following UK inflation report that despite showing economic growth was slashed to zero on EU concerns, was followed by Governor Mervyn King’s words saying there was no urgent need to print more money, and even less to cut interest rates. The GBP/USD jumped to 1.5660 price zone after the news, consolidating around ever since. The hourly chart holds its bullish tone as price stands above a bullish 20 SMA while momentum heads north above 100, while in the 4 hours one the technical outlook also favors the upside. With a weekly high at 1.5683 accelerations above this level should trigger further gains towards 1.5730 first, ahead of 1.5770 later today.
Support levels: 1.5620 1.5590 1.5550
Resistance levels: 1.5685 1.5730 1.5770
USD/JPY Current price: 78.42
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Japanese yen was under pressure this Wednesday, ahead of BOJ action and concerns over political woes going on: Japanese parliament and government are battling as government wants to double consumption tax to 10% by 2015; market talks on new elections being part of the tax deal are also weighing on the currency. Also, the BOJ will end its 2-day meeting today, with market players anxiously waiting for intervention to be triggered today, although odds of such seem quite small knowing the central bank history. The hourly chart shows a quite limited bullish tone in the pair, as despite indicators stand above their midlines the 20 SMA holds a strong bearish slope. In the 4 hours chart the tone is also barely positive, yet unless a break above 78.80 the upside will remain capped. If the BOJ decides to keep economic policy on hold, the pair may see a strong slide towards the 77.90 support area, while yen appreciation will be far more interesting in other yen crosses.
Support levels: 78.30 78.10 77.90
Resistance levels: 78.50 78.80 79.15
AUD/USD: Current price: 1.0570
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Showing a limited recovery from yesterday’s slide, the AUD/USD trades with a positive technical outlook ahead of employment figures in Australia. News forecast are mixed as the economy is expected to have created around 10K new jobs yet unemployment rate may have rose to 5.3% from 5.2%. Also Chinese CPI and PPI will be release at the same time, triggering an overdose of volatility during the event. Overall, the newly called “safe haven” Aussie holds to its bullish trend against the greenback, with no signs of having set a top yet. Positive numbers in both, Australia and China, will likely open doors for a retest of the yearly high of 1.0855 set early February for the upcoming weeks. In the meantime and for the short term, the hourly chart shows indicators heading north above their midlines as price stands above moving averages, while the same picture is seen in the 4 hours chart: wait for a break above 1.0605 recent high to confirm a continuation rally towards 1.0640 first and 1.0680 later on the day.
Support levels: 1.0530 1.0500 1.0470
Resistance levels: 1.0570 1.0605 1.0640
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