EUR/USD: accelerating lower, watch 1.1120
|EUR/USD Current price: 1.1157
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The EUR/USD fell to 1.1150, a few pips below past week low, as the dollar is broadly firmer across the board, on easing concerns over Deutsche Bank woes, and a continued slide in the British Pound, on fears over a hard Brexit. As for the common currency, a surprise decline in August PPI in the EU added to the negative sentiment, as industrial producer prices fell by 0.2% in the month. During the upcoming American session, the US will release its ISM New York Index, and by the end of the day, the API crude stockpiles report.
From a technical point of view and in the short term, the pair is at risk of extending its slide, given that in the 1 hour chart, the price is well below a now sharply bearish 20 SMA that has crossed below the 100 and 200 SMAs, while technical indicators have resumed their declines within oversold territory, after a limited upward corrective move. In the 4 hours chart, the price has accelerated its decline below its moving averages that anyway lack directional strength, while the Momentum indicator corrected modestly higher within positive territory, while the RSI heads sharply lower around 34, favoring also a bearish extension. The pair has an immediate support at 1.1120, the base of its latest range, with a break below it probably fueling the decline towards 1.1045.
Support levels: 1.1120 1.1080 1.1045
Resistance levels: 1.1245 1.1280 1.1335
GBP/USD Current price: 1.2748
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The GBP/USD pair accelerated its decline after breaking through the 1.2800 figure, trading at fresh 31-year lows. Rising concerns over a possible "hard Brexit" triggered by the UK´s Prime Minister Theresa May during the weekend. The release of a better-than-expected September Construction PMI was not enough to halt the decline, although the sector grew by more than expected in the month, reaching 52.4 against expectations of 49.0. Ahead of the US opening, the pair is accelerating its decline, having so far posted a low of 1.2735, and with the 1 hour chart showing that the price is well below a strongly bearish 20 SMA, while technical indicators keep heading south, despite being in oversold territory. In the 4 hours chart, technical readings also support a bearish extension, heading sharply lower within negative territory, while the 20 SMA has turned lower far above the current level, now capping the upside around 1.2900.
Support levels: 1.2735 1.2690 1.2650
Resistance levels: 1.2765 1.2800 1.2840
USD/JPY Current price: 102.54
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More gains likely, but key resistance nearby. As market sentiment improved and stocks soared, the USD/JPY pair surged to its highest in two weeks, hovering in the 102.50 region ahead of the US opening. Renewed hopes of a US rate hike next December, and easing concerns over a Deutsche Bank collapse have helped the pair, which now approaches a critical dynamic resistance, its 100 DMA at 102.75. The daily indicator has continuously rejected advances ever since May this year, when it tested it for the first time. In the short term, and according to the 1 hour chart, the pair remains bullish, although decelerating, as technical indicators have lost upward strength within extreme overbought levels, whilst the price is far above its 100 and 200 SMAs. In the 4 hours chart, the Momentum indicator has turned modestly lower within extreme readings, but the RSI indicator keeps heading north, despite being around 74, supporting an upward continuation.
Support levels: 101.00 100.65 100.30
Resistance levels: 101.85 102.30 102.70
AUD/USD Current price: 0.7659
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The AUD/USD pair saw little action after the RBA decided to keep its economic policy unchanged in its overnight meeting, the first with Gov. Wheeler. In fact, the Aussie has been performing quite well, although is losing ground ahead of the US opening, as spot gold plunged below $1,300.00 a troy ounce for the first time since June this year. The short term picture for the pair shows that the price is now below a flat 20 SMA, while technical indicators have turned lower below their mid-lines, but the price is refusing to give up, with short term buying interest around 0.7650. In the 4 hours chart, however, the price is above a horizontal 20 SMA, currently at 0.7650, while indicators are flat above their mid-lines, limiting chances of a stronger decline.
Support levels: 0.7650 0.7600 0.7570
Resistance levels: 0.7690 0.7735 0.7770
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