EUR/USD Current price: 1.3190
Not a good day for major economies: bad news came from both sides of the Atlantic, leaving markets at the mercy of risk sentiment. Early Europe local PMI’s missed expectations reflecting the fragility of the economic situation. In the US, unemployment claims rose, while Philly manufacturing index fell strongly down -12.5 from an expected 1.1. The EUR/USD attempt to recover during the American session halted around 1.3230, and the pair finally fell to set a daily low at 1.3160. Entering Asian session, the hourly chart shows indicators standing below their midlines, showing no actual strength yet far from the extreme oversold levels reached earlier today: while indicators correct, price remains at lows, which should signal further selling pressure. In the 4 hours chart technical readings start to show signs of exhaustion to the downside, but remain in oversold territory. Key support to break is the 1.3150 area, where the pair presents several intraday highs and lows from early January: once below, 1.3080 are comes as a possible target today.
Support levels: 1.3150 1.3110 1.3080
Resistance levels: 1.3210 1.3245 1.3290
EUR/JPY Current price: 122.65
Euro selloff along with yen strength triggered a strong downward correction in the pair that extended to 122.24. With elections in Italy and Cyprus over the weekend, a new BOJ governor to be announced probably next week, the pair has lost its shine, and buyers stepped aside waiting for a clearer picture, what will likely allow further downside corrective movements, eyeing 120.70 support area. In the hourly chart technical readings remain bearish, despite slightly oversold, while in the 4 hours chart bearish momentum remains strong, supporting more slides ahead, as long as 123.30 caps the upside in the short term.
Support levels: 122.20 121.70 121.10
Resistance levels: 122.90 123.30 123.80
GBP/USD Current price: 1.5250
The GBP/USD enters Asian session little changed from its US opening. The pair found room to bounce higher on positive UK public figures, after being as low as 1.5130. However, the upward strength has lost potential, according to the hourly chart, as the pair was unable to overcome 1.5260 area, and technical indicators turn south still in positive territory. In the 4 hours chart indicators corrected extreme oversold readings and turn back lower, which helps keep the upside limited. A correction higher however, could not be ruled out, with 1.5320 area as primary selling zone in such cases. Back below 1.5200 on the other hand, should deny any possibility of extending higher and see price looking for fresh lows.
Support levels: 1.5235 1.5200 1.5170
Resistance levels: 1.5260 1.5320 1.5360
USD/JPY Current price: 93.07
The USD/JPY spent the US session trading between 92.80/93.30, and as most yen crosses, gaining bearish potential: the hourly chart show indicators aiming lower in negative territory, while price stands below its moving averages both around 93.50/60, favoring further slides ahead. Worth’s mentioning 100 SMA is still above 200 one, although not for much. In the 4 hours chart technical readings turned flat in negative territory while price hovers around its 100 SMA. Renewed selling pressure below 92.70, should expose the downside with 92.00 area then at sight.
Support levels: 92.70 92.30 92.00
Resistance levels: 93.30 93.55 93.80
AUD/USD: Current price: 1.0240
The AUD/USD remains pretty much unchanged since last updated, trading in between 1.0220 and 1.0270, yet holding a bearish tone as price seems unable to clearly break above the hourly 20 SMA while indicators hold in negative territory. In the 4 hours chart, momentum remains bearish, although losing strength while RSI is flat right above 30. A break of the range is needed so see a clearer picture, yet the downside remains favored towards 1.0160 price zone.
Support levels: 1.0225 1.0190 1.0160
Resistance levels: 1.0270 1.0300 10330