EUR/USD Current price: 1.2287
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The EUR/USD opened the week slightly lower after being as high as 1.2316 on Friday dollar selloff, holding the long term bearish trend although mostly range bound since early July. With both economies in trouble, still Euro seems much weaker than the greenback, and upward movements continue to be short covering runs, rather than strength from the common currency. The hourly chart shows price standing above a flat 20 SMA with indicators in neutral territory, giving no clues on direction for current Asian session, while in the 4 hours chart the prevailing outlook is bearish, with 20 SMA gaining bearish slope above current price and indicators in negative territory. Watch for a break of 1.2250 support to confirm a downward extension although buyers will likely be aligned around 1.2200/20 and more near 1.2160 price zone.
Support levels: 1.2250 1.2220 1.2160
Resistance levels: 1.2335 1.2380 1.2410
GBP/USD Current price: 1.5680
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Having gapped lower, the GBP/USD holds to recent strength above 1.5660 area, and advances towards the 1.5700 area with hourly chart showing a strong bullish momentum: indicators had north above their midlines as price advances well above 20 SMA. In the 4 hours chart, range persist with a slightly upward tone as price prints higher highs and higher lows, yet indicators hold flat in neutral territory. Pair has been failed around 1.5770 strong midterm resistance area, several times since late May, and is now the key resistance level to follow, as a daily close above it, may open doors for an extension near 1.60 over the upcoming sessions, not quite clear at the time being.
Support levels: 1.5660 1.5625 1.5590
Resistance levels: 1.5700 1.5730 1.5770
USD/JPY Current price: 78.27
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Japanese yen trades in a tight range against most rivals, yet holding to its usual strength. The USD/JPY is confined to a 78.10/78.80 range, with the BOJ buying at the bottom and Japanese exporters selling at the top. With current summer low volumes, breaks of the range seem quite unlikely unless the BOJ acts; the hourly chart shows price bouncing from the base of the range with indicators aiming slightly higher from oversold levels, still in negative territory as price develops below moving averages. In the 4 hours chart technical outlook is bearish, again with 77.90 as line in the sand in case of a break below 78.10 area.
Support levels: 78.10 77.90 77.65
Resistance levels: 78.80 79.15 79.40
AUD/USD: Current price: 1.0552
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The AUD/USD trades 30 pips below past Friday close, with an unfiled gap holding above current price. The pair holds its overall bullish tone, as dips had attracted strong buying interest once price approached 1.0500 past Friday. The hourly chart shows indicators heading north above their midlines and price standing above 20 SMA, suggesting more gains ahead, as long as 1.0530 immediate support holds. Recent highs set around 1.0610 suggest a clear break to the upside is required to confirm a bullish break, thus a pullback and consolidation above 1.0600 is needed to confirm the run. In the 4 hours chart range dominates the pair with indicators flat in neutral territory, far from suggesting a bearish move.
Support levels: 1.0530 1.0495 1.0440
Resistance levels: 1.0580 1.0615 1.0640
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