EUR/USD: bearish momentum accelerates, 1.0800 possible
|EUR/USD Current price: 1.0866
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Majors keep trading within well-limited ranges this Tuesday, although the dollar remains strong, particularly against the yen and European currencies. The EUR/USD pair trades a handful of pips of the multi-month low set at 1.0859 ahead of Wall Street's opening, in spite of a strong German IFO survey released early Europe, showing that confidence among German business rose to its highest in over two years, with the business climate index up to 110.5 in October. Expectations rose to 106.1 from previous 104.5, while the assessment of the current situation advanced to 115.00 from previous 114.7. During the upcoming session, the US will release some house price indexes, alongside with its October consumer sentiment figure. If this last beats expectations, there's a good chance that the dollar will extend its advance further.
From a technical point of view, and in the short term, the pair is clearly bearish, given that in the 1 hour chart, the price is now extending below all of its moving averages, whilst technical indicators gain bearish tone below their mid-lines. In the 4 hours chart, the price retreated from a sharply bearish 20 SMA, while the RSI indicator is resuming its decline near oversold readings, and the Momentum consolidates below its 100 level, all of which increases the risk of a new leg lower, particularly on a break below 1.0840, a long term static support zone.
Support levels: 1.0840 1.0800 1.0760
Resistance levels: 1.0910 1.0950 1.1000
GBP/USD Current price: 1.2215
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The GBP/USD pair has been trading in a well-limited range around the 1.2200 figure ever since the day started, overall consolidating due to the absence of a fresh catalyst. Nevertheless, fears over the economic future of the UK after the Brexit, and hopes of a US FED rate hike, implicate that the risk is towards the downside longer term. Daily basis, US Consumer confidence data may define the intraday trend. Technically, the 1 hour chart shows that the price is accelerating below its 20 SMA, while technical indicators head south within negative territory, as the price approaches its daily low, supporting a downward move towards 1.2070, Friday's low. In the 4 hours chart, the technical picture is neutral-to-bearish, with the price hovering around a horizontal 20 SMA and technical indicators holding right below their mid-lines, with no clear directional strength.
Support levels: 1.2170 1.2130 1.2080
Resistance levels: 1.2250 1.2290 1.2330
USD/JPY Current price: 104.50
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Bullish, but with no momentum. The USD/JPY pair advanced to 104.60 this Tuesday, stalling a couple of pips below the monthly high, and holding nearby early US session, lead by a modestly positive tone in worldwide stocks and dollar's strength. The pair maintains a positive tone, although there's a clear lack of momentum. Short term the 1 hour shows that the price has moved well above its 100 and 200 SMAs, both together and with no clear strength around 103.90, while technical indicators have retreated from near overbought readings, suggesting that the buying interest diminishes as the price approaches the critical 105.00 level. In the 4 hours chart, however, technical readings support a new leg higher, given that the momentum indicator heads sharply lower well above its 100 level, the RSI indicator consolidates around 66, and the 100 SMA extended its advance below the current level.
Support levels: 104.25 103.70 103.30
Resistance levels: 104.60 105.05 105.50
AUD/USD Current price: 0.7647
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After finding buying interest again on a deep towards the key 0.7600 region, the AUD/USD pair is trading at a fresh weekly high in the 0.7640 region ahead of the US opening, with the Aussie boosted by an advance in commodities prices and equities. The short term picture is bullish, with technical indicators advancing well above their mid-lines in the 1 hour chart, although the pair is within a tight range, and needs to accelerate beyond 0.7660 to be able to advance further. In the 4 hours chart, the technical picture also favor some additional gains, with the price above its 20 SMA and 200 EMA, and indicators entering positive territory with nice bullish slopes.
Support levels: 0.7600 0.7560 0.7525
Resistance levels: 0.7660 0.7690 0.7735
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