EUR/USD Current price: 1.3185View Live Chart for the EUR/USD
The EUR/USD surges amid EUR/JPY strength, as Japanese LDP won elections insuring yen weakness in the days to come. The pair not only gapped higher, but stands above past September highs around 1.3170, now immediate support level. The hourly chart shows a strong upward momentum, as indicators regain the upside after correcting some of the overbought reading reached on Friday. In the 4 hours chart, technical readings show the pair is also overbought, yet corrective movements so far seem limited by 1.3130, next short term support. To the upside, once above 1.3200 the pair has room to extend up to 1.3280 area, past May monthly highs.
Support levels: 1.3170 1.3130 1.3090
Resistance levels: 1.3200 1.3245 1.3280
GBP/USD Current price: 1.6177View Live Chart for the GBP/USD (select the currency)
GBP/USD trades higher also, still around past Friday high of 1.6180. The hourly chart shows 20 SMA heading strongly up around 1.6140, while indicators head north in positive territory. In the 4 hours chart, technical readings hold a neutral stance, although a break to the upside of recent highs suggests more gains are yet to come: 1.6220 area, early October highs are immediate resistance level to follow as once above, the pair has scope to retest 1.6308 this year high.
Support levels: 1.6140 1.6110 1.6065
Resistance levels: 1.6220 1.6265 1.6310
USD/JPY Current price: 84.11View Live Chart for the USD/JPY (select the currency)
The USD/JPY opened above 84.30, gaping around 90 pips higher with Japanese elections, and setting a fresh yearly high early interbank trading, around 84.45. The hourly chart shows a huge gap, and chances price will fill it anytime soon are quite low; indicators head strongly higher both in 1 and 4 hours chart, while the daily one shows not much in the way up to 85.50 area, April 2011 highs. Dips will likely be seen as buying opportunities, with 83.00/20 area as probable bottom for this week.
Support levels: 84.00 83.80 83.50
Resistance levels: 84.45 85.00 85.50
AUD/USD: Current price: 1.0556View Live Chart for the AUD/USD (select the currency)
COT report as per last week, shows AUD long positioning is near extreme highs, something that usually anticipates a top. However, dollar general weakness will likely prevent the pair to fall strongly, well sit above the 1.0500 level. The hourly chart shows a negative stance according to technical readings, as the pair fell as low as 1.0536 early opening, yet with price recovering back higher, a slide will have to wait. In the 4 hours chart the technical outlook remains positive, and will stay so as long as price holds the 1.0500 level. 1.0610/20 area has caped the upside since March this year, and with the RBA presenting a dovish stance, strong gains above the level seem unlikely at the time being. Steady gains above however, may see the pair reaching 1.0855 this year high.
Support levels: 1.0535 1.0510 1.0460
Resistance levels: 1.0570 1.0620 1.0650
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