EUR/USD Current price: 1.2983
Risk off was the name of the game this Tuesday, with stocks nose diving on bad earning reports and Euro following on Spanish woes: disappointing GDP along with rising yields (still below 6%) along with news OTM will go out with conditions, sent investors towards the greenback. Despite the strong slide, the EUR/USD managed a late bounce from a key support area, 1.2950; the level stands for the 61.8% retracement of its latest daily bullish run, converging also with a daily ascendant trend line coming from 1.2041. Having reached extreme oversold readings, the hourly chart shows now indicators off those levels, far from signaling a recovery, while 20 SMA holds a strong bearish slope above current price. In the 4 hours chart the technical outlook is also bearish, although the movement lost momentum. While the pair bounced from a quite significant level, as long as below 1.30, risk remains to the downside for the pair, with a break below 1.2950 pointing for a retest of the 1.2820 price zone.
Support levels: 1.2950 1.2910 1.2870
Resistance levels: 1.3010 1.3045 1.3070
GBP/USD Current price: 1.5950
The GBP/USD fell to a 7-week low of 1.5912 in the peak of panic dollar demand, recovering later some 40 pips and entering Asian session with a weak technical outlook, according to the hourly chart, as price remains capped below 20 SMA and indicators turn flat in negative territory, after correcting extreme oversold conditions. In the 4 hours chart technical readings are also bearish, and downward pressure will likely stay as long as price is unable to recover the 1.6000 area. The main resistance is a bit higher, around 1.6065. Only a recovery above that level could give buyers enough confidence to push the pair higher. In the meantime, renewed selling pressure may see the pair nearing key 1.5770 support later this week.
Support levels: 1.5920 1.5885 1.5840
Resistance levels: 1.6030 1.6065 1.6095
USD/JPY Current price: 79.85
USD/JPY traded in a tight range, trapped in the middle of a tug-o-war between risk aversion and dollar strength. With market players already pricing in more BOJ easing next week, the yen has lost its attractive as safe haven, although dollar can make little progress in such a negative sentiment environment against its Japanese counterpart. Holding its bullish stance according to technical readings, break and consolidation above 80.00 level is now key for more gains towards the 80.60 price zone. Short term buying interest rests around 79.70 and more on dips towards 79.40 price zone.
Support levels: 79.70 79.40 79.10
Resistance levels: 80.00 80.30 80.60
AUD/USD: Current price: 1.0265
The AUD/USD found an intraday bottom at 1.0235 after breaking below a daily ascendant trend line coming from 1.0148 September low, currently around 1.0280. Australian CPI readings are the main risk factor for current session: if inflation remains low, the RBA may consider further rate cuts in the nearest future, and that should not be Aussie positive. Technical readings in the hourly chart show a strongly bearish 20 SMA also around 1.0280, while indicators stand in negative territory, correcting early nose dive. In the 4 hours chart indicators remain bearish, helping keep the upside limited. Bears will hold control as long as 1.0335 keeps the upside limited.
Support levels: 1.0250 1.0210 1.0170
Resistance levels: 1.0280 1.0310 1.0335
Today's new term is Convertibility Risk.