EUR/USD Current price: 1.3071
Risk appetite unwind this Thursday, as market focus in European woes: early talking of a banking union agreement been near were denied by a market talk stating leaders are not sure they will meet they target by Jan 1st 2013. In the mean time, Google and Microsoft reported drops on their third quarter incomes, favoring dollar gains across the board. The EUR/USD fell to 1.3054 before bouncing slightly higher, capped now to the upside by the base of the latest short term range around 1.3080. The bearish potential is growing both in the hourly chart, with 20 SMA turning lower above current price; in the 4 hours chart, indicators approach their midlines, ready to turn lower, although price is finding support in a still bullish 20 SMA.
Support levels: 1.3050 1.3020 1.2985
Resistance levels: 1.2080 1.3110 1.3140
GBP/USD Current price: 1.6053
GBP/USD nose dived mid American afternoon, collapsing trough Fibonacci levels and short term trend lines, that offered support over the past few sessions. The pair fell as low as 1.6039, trading early Asia below 1.6065, strong static support level early week. The hourly chart shows indicators aiming higher from extreme oversold levels, pointing for a corrective movement rather than a recovery: as long as below mentioned 1.6065, the downside is favored with a break below 1.6025 opening doors for a retest of 1.5970 lows later this Friday.
Support levels: 1.6025 1.6000 1.5970
Resistance levels: 1.6065 1.6095 1.6130
USD/JPY Current price: 79.29
The USD/JPY managed to hold above the 79.00 level, taking one more step in its latest recovery. The upside however, was limited by a strong resistance level, 200 DMA around 79.40. In the hourly chart, technical readings support the upside, as indicators head north above their midlines, while distance in between 100 and 200 SMA continues to widen below current price. In the 4 hours chart the upside is also favored although technical indicators have not enough momentum at the time being. Advances beyond 79.40 will confirm buyers remain in control, yet strongly rallies may come only with an acceleration above 79.60 static resistance zone.
Support levels: 79.10 78.73 78.45
Resistance levels: 79.40 79.65 79.90
AUD/USD: Current price: 1.0378
Aussie hold to its gains despite overall dollar gains, recovering some ground early Asia against the greenback. Struggling around the 50% retracement of its latest daily slide around 1.0385, the hourly chart shows indicators turning slightly north around their midlines and price pushing higher; in the 4 hours chart indicators seem exhausted in extreme overbought levels, yet far from suggesting a downside move. Technical readings support the upside, going against market sentiment: if local share markets fall, the downside will then be favored, with a break below 1.0360 signaling a probable retest of the 1.0300 price zone.
Support levels: 1.0360 1.0335 1.0300
Resistance levels: 1.0410 1.0445 1.0470
Today's new term is Convertibility Risk.