EUR/USD Current price: 1.2876
US companies will start reporting Q3 earnings right after the New York closing bell starting with ALCOA which is the first of the Dow 30 members to report quarterly results and is often viewed as a proxy for the ensuing earnings season. With market dancing at the sound of sentiment, the report will be key as below expectations readings may only fuel recent dollar gains on risk aversion. The EUR/USD fell to a 9 days low as global fears over Greece and Spain resurged with the series on meetings and talking going on in Europe, reaching 1.2858 before bouncing slightly higher. With markets eyeing stocks to decide next movement here, watch for a postivie outcome from Alcoa report sparking some risk appetite and a recovery of EUR/USD up to 1.2930, where the first line of sellers will appear. If above 1.2970 comes as next strong resistance level. On the other hand, a break 1.2840 will confirm the negative bias for the pair with scope then to test area, 38.2% retracement of the latest bullish daily run.
Support levels: 1.2840 1.2795 1.2745
Resistance levels: 1.2910 1.2930 1.2970
GBP/USD Current price: 1.5998
The GBP/USD trades below 1.60, fist time in almost a month. The bearish trend seen over the last few days accelerated with UK Trade Balance data, showing deficit inched to 9.8Billion. The pair traded as low as 1.5974, having found short term selling interest in the 1.6000 area for the past few hours. The hourly chart shows price contained below a bearish 20 SMA while indicators head south below their midlines, suggesting the downside remains exposed. In the 4 hours chart, technical readings turned flat near oversold levels, unable to pick up and also supporting more slides.
Support levels: 1.5980 1.5940 1.5910
Resistance levels: 16000 1.6030 1.6060
USD/JPY Current price: 78.21
The USD/JPY barely moved this Tuesday, trading in between 100 and 200 SMA’s in the hourly chart, with the JPY holding certain strength despite dollar demand; however the once preferred safe haven currency seems unable to advance, trading 300 pips above the record high set last 2011 around 75.60. Short term bearish, the pair may extend its slide towards 77.90 and even to 77.65 price zone, yet again quick profit taking on selling positions may see the pair bouncing back higher. Strong gains however, are out of question as long as the pair trades below 79.50/60 area, too far away for the USD/JPY to even be considered today.
Support levels: 78.10 77.90 77.65
Resistance levels: 78.50 78.80 79.10
AUD/USD: Current price: 1.0203
Despite the ongoing risk aversion, the AUD/USD managed to bounce from a daily low of 1.0174, although spikes higher were seen as selling opportunities and price fell back to hold around the 1.0200 level. Recent price behavior, suggest selling interest may become exhausted, as the pair seems unable to fall below the 1.0150/60 strong static support level, although the upside seems still limited: price needs at least to recover above the 1.0270 area to be able to correct higher. In the meantime, the technical outlook both in 1 and 4 hours chart supports the downside, as price stands below 20 SMA’s and indicators head south in negative territory. An acceleration below 1.0150 should put parity at sight for the upcoming sessions.
Support levels: 1.0200 1.0160 1.0120Resistance levels: 1.0235 1.0270 1.0300
Today's new term is Outright Monetary Transaction.