EUR/USD Current price: 1.3135
EUR/USD extends its advance to fresh highs on the back of yesterday’s FED announcement on QE3. Risk appetite rules the boards, dollar is being sell against almost any rival, and corrections are still been quite limited despite greenback extreme oversold conditions. The EUR/USD hourly chart shows indicators heading slightly lower after recent slide towards 1.3078, still in positive territory, while the price heads back north above a bullish 20 SMA. In the 4 hours chart indicators are strongly up despite deep in overbought territory, with price posting higher highs and higher lows in each candle ever since the FED. The upward momentum is quite strong, although risk of profit taking may increase after London goes home.
Support levels: 1.3075 1.3030 1.3000
Resistance levels: 1.3120 1.3145 1.3180
GBP/USD Current price: 1.6211
The GBP/USD traded as high as 1.6249 today, retracing to the 1.6200 area before bouncing back up. The upward tone, mostly due to market sentiment, will likely persist in the pair, despite hourly indicators are turning lower. However, with 20 SMA offering strong support around mentioned 1.6200 area, only a clear break lower could trigger some short term bearish correction. In the 4 hours chart the bullish potential is still present, pointing for a retest of the year high at 1.6300.
Support levels: 1.6200 1.6160 1.6135
Resistance levels: 1.6250 1.6300 1.6340
USD/JPY Current price: 78.11
The USD/JPY bounced strongly up from the 77.12 low posted yesterday, advancing as US session opens above the 78.10 level immediate support. The recovery is being supported by rising US yields and fears of a BOJ intervention, although current recovery may have a hard time to extend. The hourly chart, shows price being halted by 200 SMA, while indicators lose strength in positive territory, while the 4 hours chart continues to be bullish. If anything, Euro demand and EUR/JPY rises may favor a continuation rally towards the 78.40 price zone.
Support levels: 77.90 77.65 77.40
Resistance levels: 78.20 78.40 78.80
AUD/USD: Current price: 1.0588
The AUD/USD managed to reach past August high around 1.0615, holding to its bullish tone and looking for a break above the key resistance level. Despite hourly chart show indicators exhausted, rising stocks will likely before a break above mentioned high in current session. In bigger time frames the upside is also favored, with scope to test 1.0850 next week if the pair ends up the day above 1.0615 high.
Support levels: 1.0570 1.0530 1.0500
Resistance levels: 1.0615 1.0640 1.0680