EUR/USD Current price: 1.2563
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The EUR/USD is breaking to fresh daily highs right before US opening bell, with the pair advancing on a general belief the Euro zone authorities are ready to act to rescue Spain and Greece. Earlier today, news shown that Angela Merkel is ready to call for an EU convention for a new treaty by the end of the year to formalize steps towards tighter political union, while a few minutes ago, Van Rompuy, European Council President, stated that the EU is ready to act on short notice on Spain, and that euro is irreversible with Greece in the area. Having been well bid most of the day, the pair trades right above the 1.2560 area, aiming to test past week high around 1.2590, ahead of 1.2630 next bullish target. The hourly chart shows price advancing after a consolidative stage despite indicators seem slightly exhausted to the upside, supporting the bias. In the 4 hours chart, price holds above a flat 20 SMA currently offering support around 1.2530, while indicators hold head north around their midlines, helping keep the downside limited.
Support levels: 1.253o 1.2500 1.2485
Resistance levels: 1.2590 1.2630 1.2660
GBP/USD Current price: 1.5801
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The GBP/USD advances after posting a daily low at 1.5752 early Asia, regaining the 1.5800 level at the time being, and holding well above the ascendant trend line coming from 1.5489 that leads the way since early August. The hourly chart shows indicators still neutral, not reflecting recent advance, while price held above 20 SMA since early Europe, acting as dynamic support around 1.5770. In the 4 hours chart price is finding now resistance in a bearish 20 SMA around 1.5805, while indicators hold in neutral territory, suggesting a break and consolidation above 1.5810/20 area is now needed to confirm further advances in the pair.
Support levels: 1.5770 1.5730 1.5700
Resistance levels: 1.5820 1.5850 1.5890
USD/JPY Current price: 78.53
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Again capped by 78.80 area, the USD/JPY falls on dollar weakness, trading near recent lows set at 78.45 and immediate support level. The hourly chart shows the bearish momentum accelerating, with price capped below its moving averages and indicators heading south, while the 4 hours chart still holds a neutral stance. The downside continues to be favored towards the 77.90 area, as long as attempts to break 78.80 fail.
Support levels: 78.45 78.10 77.90
Resistance levels: 78.80 79.05 79.30
AUD/USD: Current price: 1.0371
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Australian dollar holds its bearish stance with US stocks barely around the opening, and market centered in European developments. Having been as low as 1.0344, the pair trades in a quiet range limited below 1.0386 daily high, and with the hourly chart showing indicators holding neutral readings. In the 4 hours chart the bearish outlook remains intact with price below a strongly bearish 20 SMA and indicators aiming back lower. Clear recoveries above 1.0410 are needed to see further upward correction, yet approaches to the 1.0470 area will likely be seen as selling opportunities by market players.
Support levels: 1.0360 1.0330 1.0300
Resistance levels: 1.0385 1.0410 1.0440
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