EUR/USD Current price: 1.3023
Little change from past Friday’s close, the EUR/USD stands around 1.3020, 38.2% retracement of its latest bullish run. Stocks edged strongly down after weak earnings reports in the US with indexes down around 2%, one of the worst days on Wall Street this year. Confidence among investors is being eroded also by Europeans that after a 2-day summit made no progress in regards of the Single Supervisory Mechanism meant to be operational by 2013. Major differences among counties, and not only concerning the mechanism may jeopardize latest Euro strength, so hardly gained with OTM announcements. Dollar crawls back across the board, and the EUR/USD hourly chart shows a slightly bearish tone, with price below 20 SMA and heading lower, and indicators standing in negative territory. In the 4 hours chart the bearish momentum is quite strong as 20 SMA loses strength above current price; stronger support is located at 1.2980, 50% retracement of the same rally, and strong static level. Bearish pressure may increase only once the mentioned level gives up.
Support levels: 1.3020 1.2980 1.2945
Resistance levels: 1.3035 1.3070 1.3100
GBP/USD Current price: 1.6008
GBP/USD was hit strongly, posting its fourth downside weekly close against the greenback. The pair trades near October low set at 1.5970, with short term range capped by 1.6015/20 area immediate resistance zone. The hourly chart shows indicators heading lower in negative territory and a strongly bearish 20 SMA above current price, while in the 4 hours chart the bearish momentum reaches oversold readings and starts to give signs of exhaustion. Still pair needs to recover at least above 1.6065 to erase the bearish tone and attempt further recoveries. Failure around 1.6065 if the level is reached, will only support the bearish bias for the upcoming sessions.
Support levels: 1.5970 1.5940 1.5900
Resistance levels: 1.6020 1.6065 1.6095
USD/JPY Current price: 79.25
The USD/JPY trades near recent highs set at 79.40, still capped to the upside by 200 DMA at mentioned level. The hourly chart shows a limited bearish tone as indicators stand below their midlines although mostly neutral. 100 SMA in the mentioned time frame offers now short term support around 79.00 and bearish momentum should accelerate if the level gives up; in bigger time frames, the technical stance is still pretty bullish, limiting slides to the 78.70/80 price zone, where buying interest needs to resurge to keep latest upward pressure alive.
Support levels: 79.00 78.73 78.45
Resistance levels: 79.40 79.65 79.90
AUD/USD: Current price: 1.0313
Aussie opens the week with a gap lower, heavy amid overall risk aversion; the AUD/USD broke the 1.0335 Fibonacci level now immediate resistance, and looks heavy in the hourly chart, momentum heads south and price develops below 20 SMA. 4 hours chart shows a stronger bearish tone which suggest once below 1.0290 immediate support, the downside pressure may extend quickly towards 1.0250. Recoveries above 1.0335 may deny the bearish continuation and see the pair recovering towards the 1.0370/80 price zone where sellers will attempt to jump back in.
Support levels: 1.0290 1.0250 1.0210
Resistance levels: 1.0335 1.0380 1.0410
Today's new term is Convertibility Risk.