EUR/USD: strong selling interest persists
|EUR/USD Current price: 1.0891
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Majors pairs trade mixed this Monday, although not far from Friday's closing levels. The EUR/USD pair advanced up to 1.0899 during the European morning, after retesting 1.0859, past week's low at the beginning of the day. Data coming from Europe showed that growth accelerated in the region according to the preliminary October PMIs, with the EU Markit composite printing 53.7. Despite the good news, the ECB is largely expected to extend its QE program next December, enough to maintain the upside limited in the pair.
Later today, a couple of FED speakers may imprint some life to the greenback, although the center of attention will be the October preliminary US Markit manufacturing PMI, expected at 51.6 from previous 51.5.
Technically, the short term picture for the pair is modestly positive, given that in the 1 hour chart, the price is above a now modestly bullish 20 SMA, while technical indicators are aiming modestly higher within positive territory, although below their daily highs, indicating limited buying interest. In the 4 hours chart, however, technical readings present a strong bearish potential, given that the price is developing well below a bearish 20 SMA, whilst technical indicators have resumed their slides after correcting oversold readings.
Support levels: 1.0870 1.0840 1.0800
Resistance levels: 1.0910 1.0950 1.1000
GBP/USD Current price: 1.2239
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The GBP/USD pair trades within a tight range some 20 pips either side of the 1.2200 figure, unable to find direction. The release of the CBI quarterly industrial trends survey, showed that manufacturing output and orders grew over the last quarter, with export volumes growth being the strongest in over two and half years, due to a weaker Pound. Still uncertainty over the economic future of the kingdom due to the upcoming Brexit, weighs more. The short term picture shows a modest positive tone, as the price is developing above a bullish 20 SMA, currently around 1.2220, whilst technical indicators lack directional strength, but hold within positive territory. In the 4 hours chart, the price is unable to advance beyond a horizontal 20 SMA, while technical indicators head higher below their mid-lines, losing upward strength. The upside potential seems well limited, although discouraging US data can see the pair retesting the 1.2330 region, a major static resistance level where selling interest is expected to surge.
Support levels: 1.2190 1.2160 1.2125
Resistance levels: 1.2250 1.2290 1.2330
USD/JPY Current price: 104.01
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USD/JPY modestly higher ahead of US data. The USD/JPY pair traded as high as 104.05 ahead of the US opening, unable however, to get rid of the neutral tone seen last week, as the pair keeps trading in tight intraday' ranges. The 1 hour chart shows that the price is above its 100 and 200 SMAs, but also that technical indicators are retreating towards their mid-lines within positive territory, at least suggesting no selling interest around the pair. In the 4 hours chart, however, the pair presents a modest positive tone, as the price remains well above a bullish 100 SMA, while technical indicators are recovering from around their mid-lines. The immediate resistance comes at 104.20, with a break above it supporting a retest of the monthly high in the 104.60 region.
Support levels: 103.70 103.25 102.90
Resistance levels: 104.20 104.60 105.00
AUD/USD Current price: 0.7624
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The AUD/USD pair trades near a daily high of 0.7640, retreating modestly alongside with oil prices. Nevertheless, the market is extremely quiet this Monday, and as the rest of the major pairs, its confined to a tight intraday range. The short term picture is modestly bullish, as the price is above its 20 SMA that turned north during the European morning while technical indicators are also turning higher within positive territory, although with no momentum. In the 4 hours chart, the pair presents a clear bearish stance, as technical indicators have resumed their slides within negative territory after correcting oversold readings, while a sharply bearish 20 SMA caps the upside around 0.7640.
Support levels: 0.7600 0.7560 0.7525
Resistance levels: 0.7640 0.7690 0.7720
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