EUR/USD Current price: 1.3046
The EUR/USD finally broke above the 1.3000 level, mounted on a positive bound auction in Spain and better than expected macro readings in Europe. Market is also optimistic amid earning reports: Goldman Sachs Group posted earnings of $1.5 billion, or $2.85 per share, compared with a loss of $428 million, or 84 cents per share, a year earlier. Stocks are strongly up across the world, feeding high yielders demand. The EUR/USD hourly chart shows price broke the daily descendant trend line coming from 1.3172, currently around 1.3030 and acting as immediate support: if the level holds, the pair has scope to extend even further, and attempt a retest of September highs in the upcoming sessions mentioned 1.3172. Technical readings reached extreme overbought levels, and despite still bullish a short term downside corrective movement could not be discarded. In the 4 hours chart the upside momentum remains strong, far from overbought, supporting the limited corrective movements ahead of a new leg higher.
Support levels: 1.3030 1.3000 1.2965
Resistance levels: 1.3070 1.3110 1.3140
GBP/USD Current price: 1.6116
Pound found the strength to continue higher after basing at the 1.6065 Fibonacci support against the greenback, aiming now to break above 1.6130, 61.8% retracement of the latest fall, which will open doors for a full retracement up to 1.6215, current October monthly high. The hourly chart shows price bouncing higher on dips towards a bullish 20 SMA, while indicators head north above their midlines, supporting the bullish bias for the short term. In the 4 hours chart, technical readings are also heading higher in positive territory: further confirmation will be seen once the pair establish above mentioned 1.6130 level, while corrective movements should now find support around the 1.6100 level.
Support levels: 1.6100 1.6065 1.6030
Resistance levels: 1.6130 1.6160 1.6185
USD/JPY Current price: 78.89
The USD/JPY fight around 78.80 continues with the pair unable to move away from the area, despite market positive sentiment. Daily chart shows price currently above 100 SMA at 78.73 acting as immediate support: the pair has been unable to close a day above it since late May this year, which suggest a daily close at current levels may be a first tip of further gains to come. A daily close above 79.10 will be even better. In the meantime, the hourly chart shows 100 SMA crossing back up 200 one around 78.45 immediate support level while indicators remain mostly flat in positive territory. In the 4 hours chart technical readings are also bullish yet price needs to extend beyond mentioned 79.10 to gather enough momentum to extend its advance.
Support levels: 78.73 78.45 78.10
Resistance levels: 79.10 79.30 79.60
AUD/USD: Current price: 1.0266
The AUD/USD lags compared to other high yielders, weighted by an overall dovish RBA Minutes: Glenn Stevens said “slowing” Chinese growth along with “declining exports to Europe” had resulted in weaker demand for steel, while labor markets had “eased" over the last few months and noticed a “decline in the appetite for spending”. Despite rates where left unchanged the pair fell as low as 1.0254 following the news. Range bound, the AUD/USD struggles to hold above 20 SMA in the hourly chart while indicators head lower still above their midlines. In the 4 hours chart technical readings are neutral, giving not much clues on direction: unless a clear break above 1.0300, the upside seems quite limited for the AUD/USD.
Support levels: 1.0230 1.0200 1.0170
Resistance levels: 1.0270 1.0300 1.0335
Today's new term is Convertibility Risk.