EUR/USD: Limited correction, far from bearish

EUR/USD Current price: 1.3356

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The EUR/USD sees a limited bearish correction this Monday, as risk appetite fades across the boards. However, the common currency remains strong compared to other majors, as the EUR reached fresh multi-week highs against GBP and CHF, while the EUR/USD trades around its weekly opening, barely affected for dollar short term strength. The hourly chart presents a slightly bearish tone, as indicators hover around there midlines while price remains below a flat 20 SMA, but the downside remains limited. In the 4 hours chart indicators are slowly easing from extreme overbought readings, yet far from signaling further downside corrections. As long  as above the 1.3290/1.3300 area, the downside  seems contained, with 1.3370/80 still the key resistance to overcome to see an extension towards 1.3485.

Support levels: 1.3325 1.3290 1.3240

Resistance levels: 1.3370 1.3405 1.3450

GBP/USD Current price: 1.6035

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The GBP/USD nose dived over 100 pips this Monday, weighted by market sentiment along with market talks of a triple recession in the UK over the weekend. The hourly chart shows price hitting fresh daily lows ahead of US opening, with indicators at oversold levels; price stands now below 1.6065, that should offer short term resistance if the pair attempts a recovery. In the 4 hours chart indicators gain bearish momentum, supporting the short term bearish stance: key support is now at 1.5990 static level.

Support levels: 1.6020 1.5990 1.5950

Resistance levels: 1.6065 1.6090 1.6120 

USD/JPY Current price: 89.25

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The USD/JPY trades slightly lower after testing 89.66 over Asian hours, holding a neutral stance according to the hourly chart, as indicators turned flat around their midlines. Mostly consolidating, the pair remains bullish despite what technical readings may suggest, and downside movements are still seen as buying opportunities rather than signs of reversal. In the 4 hours chart, indicators correct extreme overbought readings, although losing downside potential. 

Support levels: 89.00 88.70 88.45

Resistance levels: 89.65 90.00 90.30

AUD/USD: Current price: 1.0564

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Aussie managed to recover from an intraday low of 1.0520 against the greenback, with the pair now looking bullish in the hourly chart: price stands above 20 SMA that regains the upside, while indicators head north in positive territory. In the 4 hours chart price stands above a bullish 20 SMA, while indicators lose upward potential although hold in positive territory. At this point, pair needs to clear 1.0600 barrier to be able to confirm the upside over the upcoming sessions.

Support levels: 1.0550 1.0520 1.0490 

Resistance levels: 1.0580 1.0600 1.0660 

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