EUR/USD Current price: 1.2524
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It was pretty much a quiet day in the markets, with majors ranging ahead of the FOMC Minutes. In Europe, there was a Junker-Samaras meeting that ended up with no decisions as usual: Greek aid won’t be decided until October, and although Samaras guarantee personally Greek debt, Citi techs are giving 90% odds of Greece leaving the EU in less than an year. But forex board was all about QE3 today, as the FOMC was much more dovish than expected: key words on the statement were “many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery” triggering a dollar selloff that sent EUR/USD to 1.2537, 7-week high. Consolidating near the high, the pair enters Asian session with a clearer bullish perspective, with the hourly chart showing indicators in positive territory and price well above its 20 SMA. In the 4 hours chart the upward momentum remains strong and price will likely extend towards fresh highs with 1.2485 now attracting late buyers.
Support levels: 1.2485 1.2440 1.2410
Resistance levels: 1.2535 1.2560 1.2590
GBP/USD Current price: 1.5876
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The upward momentum in GBP/USD extended to levels not seen since mid May, reaching 1.5881 3-months high. Overbought according to the hourly chart as RSI stands above 78, price shows no signs of giving up. The bullish tone is also present in the 4 hours chart as indicators head north quite vertical while 20 SMA gains bullish slope below around the 1.5770 now key support on dips. The bigger outlook for GBP/USD remains bullish, with a break above 1.5930 opening a quite clear path towards 1.60.
Support levels: 1.5850 1.5820 1.5770
Resistance levels: 1.5885 1.5930 1.5960
USD/JPY Current price: 78.56
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The anticipated correction was actually a nose dive in USD/JPY, with retails trapped in longs and the pair losing around 90 pips in less than an hour with US slide. The pair reached previous strong support area, between 78.10/30, where it started a limited bounce. The hourly chart shows indicators turning back south after a limited correction still in oversold territory, with price now below 78.80 key resistance area and also 61.8% retracement of latest daily gains. In the 4 hours chart indicators hold a strong bearish tone nearing oversold levels, with price now below 100 and 200 SMA, supporting the bearish tone of the pair.
Support levels: 78.20 77.90 77.65
Resistance levels: 78.80 79.05 79.30
AUD/USD: Current price: 1.0503
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While the upside for AUD/USD seems still elusive, the pair also managed to recover strongly on US fall, reaching 1.0516 and stabilizing right above the 1.0500 mark. Chinese Manufacturing PMI to be released in current Asian session will be key for the pair, as a reading below 49.3, previous month one, will spur fears of an economic slowdown and therefore weight in the pair. Technically, hourly chart shows indicators turning flat in extreme overbought levels, suggesting no much of a retracement right now, while in the 4 hours chart the upside bias gains momentum: the pair has been finding selling interest in the 1.0520/40 area, so expect a strong acceleration to the upside if stops right above 1.0540 get triggered on better than expected Chinese news.
Support levels: 1.0490 1.0470 1.0440
Resistance levels: 1.0540 1.0570 1.0615
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