EUR/USD Current price: 1.2619
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The dollar is being smashed across the board since early Europe, with stocks and commodities bouncing up sharply. Month end fixing may have helped, but the EU soap opera leads the way: market talks of Bundesbank’s president menacing to resign in opposition to ESM bond buying, have been welcome by Angela Merkel who stated that Weidmann did ok “warning” politicians, as she favors a strong Bundesbank influence in ECB. In the meantime, Spanish FinMin said that with 148B Euro will be enough to fund regions. Spanish yields are back higher, but does not matter. Selling the dollar is the name of the game. The EUR/USD trades above the 1.2600 mark after reaching 1.2627 so far. Technically speaking the upward momentum remains strong although showing the first signs of exhaustion, according to hourly indicators; in the 4 hours chart the break of the triangle suggest the upward trend is ready to resume, with next big resistance areas at 1.2680 and 1.2745 if the high is cleared.
Support levels: 1.2590 1.2550 1.2520
Resistance levels: 1.2630 1.2680 1.2715
GBP/USD Current price: 1.5882
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The GBP/USD soared on market sentiment, reaching a new weekly high of 1.5889, holding near the level ahead of the US opening. The hourly chart shows a strong upward momentum, with indicators reaching overbought levels, yet without suggesting a turn in the short term. In the 4 hours chart the upward tone is also strong with plenty of room to continue according to technical readings: a break above 1.5920 should confirm further advances in the pair.
Support levels: 1.5850 1.5820 1.5790
Resistance levels: 1.5920 1.5960 1.6000
USD/JPY Current price: 78.37
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Japanese yen advanced against the greenback, with the USD/JPY reaching 78.34 and holding nearby. The bearish momentum accelerated in the hourly chart, with price well below moving averages and indicators heading south below their midlines. In the 4 hours chart the technical outlook also favor a bearish continuation, with 77.90 as key support.
Support levels: 78.10 77.90 77.65
Resistance levels: 78.45 78.80 79.05
AUD/USD: Current price: 1.0331
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The AUD/USD managed a shy recovery compared to other riskier assets, bouncing from a double floor set early Asia in the 1.0270 region. The hourly chart shows indicators in positive territory, turning flat as the pair faces strong selling interest in the 1.0340 area. In the 4 hours chart price is being capped by a still strongly bearish 20 SMA around mentioned level, while indicators hold in negative territory. Price needs to break above 1.0370, 23.6% of the latest bullish run, to ease the dominant bearish trend and attempt a recovery that may extend near 1.0440.
Support levels: 1.030’ 1.0270 1.0225
Resistance levels: 1.0340 1.0370 1.0410
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