EUR/USD Current price: 1.2902
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The EUR/USD nose dive in the American afternoon, with global markets ruled by fear: stocks drift lower with S&P seeing the worst daily lose since June amid fading hopes on easing. Mario Draghi from ECB stated earlier today that OMT does not solve debt crisis, while FED’s Plosser also down talked US QE3 saying will hardly help the economy recovery. Despite early positive data triggered a wave or risk appetite, momentum faded with authorities’ comments, to finally collapse on news thousands of protesters hit Madrid streets against austerity. Dollar erased most of intraday losses across the board, soaring to daily highs particularly against commodity currencies; early week ranges are still in play, meaning majors have not been able to establish a clear direction on the day. But picture can change rather quickly: fear can turn into panic if the EUR/USD continues sliding below these last days’s low and breaks the 1.2880 static support level: the downside will then be exposed towards 1.2745, 38.2% retracement of the latest bullish run and past June high. The 4 hours chart supports the outlook, with 20 SMA capping the upside, and indicators heading back south after failing around their midlines, with a daily ascendant trend line coming from 1.3172 today at 1.2960, attracting sellers in case of recoveries.
Support levels: 1.2880 1.2845 1.2810
Resistance levels: 1.2930 1.2960 1.2980
GBP/USD Current price: 1.6191
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The GBP/USD fell to test weekly low of 1.6181 as market players run towards the greenback safety, consolidating right above the level; the 4 hours chart shows a strong bearish momentum as price stands at the bottom of its range, suggesting buying interest may be tested if price extends its slide to 1.6150 strong static support zone. The GBP/USD stands pretty firm however, compared to other high yielders: selling this particular pair seems not the best option until further signs of reversal come into play.
Support levels: 1.6180 1.6150 1.6120
Resistance levels: 1.6210 1.6265 1.6285
USD/JPY Current price: 77.78
View Live Chart for the USD/JPY (select the currency)
The USD/JPY surged to 77.90 mid American morning yet again was unable to overcome sellers. Having set a daily low of 77.68, the technical outlook remains bearish with indicators below their midlines and price well capped by 100 and 200 SMA’s, which distance keeps widening, suggesting a correction higher won’t come soon to play. BOJ may attempt a move outside schedule to halt the currency strength if price continues falling and near the 77.10 price zone.
Support levels: 77.65 77.30 77.12
Resistance levels: 77.90 78.10 78.50
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