EUR/USD Current price: 1.3044
EUR/USD dip to 1.2992 early Europe, bouncing quickly higher on better than expected housing data in the US, yet unable to firm up above the 1.3080 high set past Asian session. Daily chart shows a doji, with the EUR/USD ending the American session unchanged from Tuesday, yet showing that after early week failure at 1.3170, the pair has been posting lower lows and lower highs which suggests the downside is still exposed. In the hourly chart, price hovers around a flat 20 SMA while indicators stand right below their midlines, giving no clear clues on upcoming direction. 4 hours chart holds the bearish tone seen on early updates, with signaling a probable retest of the 1.2990 lows. In the longer run, stocks down, lower lows daily basis, and failure at the 1.3170 level early week, generate increasing doubts of whether this bullish tone is sustainable. Far from a reversal, renewed selling pressure below 1.2920 exposes the 1.2930 area, 61.8% retracement of this year fall. Although not seen, a daily close below that level will exacerbate selling interests with 1.2745 then at sight. A bullish continuation will depend now on the ability to overcome and sustain gains above 1.3170, with scope then for a test of 1.3485 daily high.
Support levels: 1.2990 1.2960 1.2930
Resistance levels: 1.3055 1.3080 1.3120
GBP/USD Current price: 1.6220
The GBP/USD ended the day lower, falling to 1.6183 after BOE Minutes shown an extension of the assets purchase program is still in the table. However, the pair found buying interest at mentioned low, bouncing back quickly to consolidate the rest of the day around current 1.6220 area. Right below the daily ascendant trend line coming from 1.5825, the hourly chart shows indicators heading south below their midlines and price around a bearish 20 SMA, which mostly keeps the upside limited. In the 4 hours chart the bearish potential has also increased, with indicators heading south below their midlines and 20 SMA capping the upside around 1.6230, yet unless a clear break below 1.6160 static support zone, the downside will remain limited.
Support levels: 1.6190 1.6160 1.6120
Resistance levels: 1.6230 1.6265 1.6300
USD/JPY Current price: 78.34
Not the best day ever in Japan: after the BOJ extended its Assets Purchase Program by 10T Yen past Asian session, and USD/JPY rose to 79.20, the pair ended up the day around 30 pips below pre intervention levels. Lower US yields a negative sentiment among investors, and Japanese exporters eager to sell their greenbacks, erased any intention of recovery in the pair. Entering Asian session below the 78.40/50 area, the bearish stance remains strong despite hourly chart shows indicators mostly flat in negative territory. In the daily chart, mentioned high of 79.20 failed to overcome 100 SMA which stands now at 79.00 acting as dynamic resistance. Below 78.20, expect the slide to continue, with scope to retest 77.10 past week low.
Support levels: 78.20 77.90 77.65
Resistance levels: 78.45 78.80 79.00
AUD/USD: Current price: 1.0474
The AUD/USD found the strength to surge with US opening, advancing to 1.0495 daily high, before correcting lower. Entering Asian session right above 1.0470, price stands above 20 SMA and despite indicators lose momentum there is a limited bullish tone in the pair, as long as above 1.0440 immediate support. In the 4 hours chart price is mostly consolidating, while indicators continue to move away from extreme oversold levels approaching their midlines, still not offering clear buying signals. Pair will likely trade on sentiment, so worth keep an eye today in NZD GDP data and local share markets.
Support levels: 1.0445 10400 1.0370
Resistance levels: 1.0500 1.0535 1.0560
Today's new term is Ballooning Spreads.