EUR/USD Current price: 1.2630
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As past month, the EUR/USD jumped higher before the ECB announcement reaching 1.2652 daily high, only to nose dive to 1.2560 after the Central Bank exposed its plan: they will resume short term bond buying, in an attempt to bring down interest on the borrowing cost of peripheral countries. But action won’t be taken immediately: Mario Draghi passed the ball to politicians, as measures will be implemented when countries sign up their structural adjustment. Also the bond buying will be sterilized, meaning the ECB will remove money from elsewhere to ensure no increase in the money supply. For the most, the measure has bought some time for the EU, another temporal patch in the huge hole the area has. The EUR/USD bounced higher fueled by S&P rallying towards highs not seen since 2008. Stocks run was triggered by news the US may be actually growing: ADP private survey sees 210K new jobs, weekly unemployment claims fell to 365K and more over, the non manufacturing ISM sub employment component rose to 53.8 vs. 49.3 in July, which advances a positive NFP for tomorrow.
Anyway, the pair enters Asian session hovering around the 1.2630 mark holding to recent gains, and with the hourly chart showing buyers are still in control as indicators stand in positive territory and price develops above 20 SMA. In the 4 hours chart technical readings also point for an upward continuation, although continued failure to run higher at current resistance area may start discouraging buyers. Levels to watch for a clearer trend development come at 1.2652 Thursday high to the upside, and 1.2550 static support zone.
Support levels: 1.2610 1.2580 1.2550
Resistance levels: 1.2652 1.2690 1.2720
GBP/USD Current price: 1.5928
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The GBP/USD spent most of the day consolidating around the 1.5900 area, showing no reaction after the BOE left its economic policy unchanged. The pair managed to advance towards 1.5940 area on soaring stocks, yet lagged compared to other high yielders, unable to extend gains beyond that high. The hourly chart shows indicators flat above their midlines, while price stands above a bullish 20 SMA. What keeps the upside favored is the fact that price stands above the 61.8% retracement of the latest bearish run from 1.6300 to 1.5260 around 1.5910: as long as above the level falls seem quite unlikely and the level will probably keep the downside limited until US NFP release. In the 4 hours chart indicators bounced higher from their midlines while price stands above 20 SMA, supporting the bullish outlook of the pair.
Support levels: 1.5910 1.5880 1.5840
Resistance levels: 1.5950 1.5990 1.6060
USD/JPY Current price: 78.88
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The USD/JPY reacted to better than expected employment readings in the US, soaring first to 78.80 and breaking the former resistance to extend its rally to 79.02 daily high. The hourly chart shows indicators exhausted to the upside yet price holding above mentioned 78.80 area, which suggest the downside will remain limited. In the 4 hours chart indicators also reached overbought levels and lose momentum early Asia, although a break above 79.10 will more likely favor a retest of 79.60 August highs.
Support levels: 78.80.78.40 78.10
Resistance levels: 79.10 79.35 79.60
AUD/USD: Current price: 1.0286
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Aussie was among the bigger winners on Thursday, reaching 1.0298 against the greenback. The pair found support in an improved unemployment rate in Australia past Asian session, regaining with the news the 1.0220 Fibonacci level. Soaring stocks during the American session did the rest. Entering Asian session near mentioned high, the hourly chart shows indicators heading lower from overbought levels, buy price holding above the 1.0270 mark immediate support and above a strongly bullish 20 SMA. In the 4 hours chart price stands well above 20 SMA that turned flat around 1.0230, first time since August 23rd, while indicators hold in positive territory. The upside is favored on a break above 1.0300, pointing for a quick spike towards 1.0340 where the pair will fill the weekly opening gap. Steady gains above 1.0340 will put further bullish pressure in the pair, looking then for an advance towards 1.0370 first, and 1.0410 later on the day.
Support levels: 1.0270 1.0220 1.0190
Resistance levels: 1.0300 1.0340 1.0370
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