EUR range bound, AUD bid ahead of employment data

EUR/USD Current price: 1.3289

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The EUR/USD close in red for second day in a row, falling as low as 1.3256, barely below the 38.2% retracement of the 1.3038/1.3403 rally. Later bounce was unable to extend beyond the 23.6% of the same rally around 1.3320, and the pair entered in a consolidative stage, turning neutral in the short term. As for the hourly chart, price hovers around a bearish 20 SMA while indicators hold around their midlines, lacking direction at the time being. In the 4 hours chart technical readings remain below their midlines, although losing the bearish momentum seen earlier today. Buyers are now aligned around the 1.3250 area, with stops gathering right below: if broken, 1.3180 is next bearish target, while steady gains above 1.3320, will reduce chances of a slide, with some limited gains afterwards.

Support levels: 1.3250 1.3220 1.3180

Resistance levels: 1.3320 1.3360 1.3400 

GBP/USD Current price: 1.6003

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Standing around 1.6000, the GBP/USD nose dived to 1.5974 this Wednesday, and remains short term bearish according to the hourly chart: indicators head south below their midlines, while price is being capped by a strongly bearish 20 SMA. In the 4 hours chart indicators bounce slightly higher from oversold readings, yet unless a recovery above the 1.6020/30 area, the downside remains favored.

Support levels: 1.5990 1.5950 1.5920 

Resistance levels: 1.6020 1.6060 1.6095 

USD/JPY Current price: 88.38

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The USD/JPY fell as low as 87.78 before bouncing higher entering Asian session with a very limited bullish tone according to technical readings: despite the recovery, the upside remains limited by the 38.25 retracement of its latest bullish run, while indicators remain mostly neutral around their midlines. Price has managed somehow to stand above the hourly 200 SMA, but with no upward momentum, the MA could be easily broken. In bigger time frames, indicators continue extending lower lower, with the daily chart showing RSI and Momentum still in overbought levels, yet pointing for a deeper correction. While current movement could still be consider corrective in the middle of the bullish trend the pair has, there is a chance for a dip as low as 86.80 over the next few days.

Support levels: 87.90 87.50 87.10

Resistance levels: 88.70 89.00 

AUD/USD: Current price: 1.0571

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Aussie surges against the greenback early Asian session, with the pair pressuring near the top of its latest range around 1.0600, and ahead of employment figures in Australia. Market expectations are well below previous months readings, so a positive number will likely favor further gains today. The hourly chart shows price above a still flat 20 SMA, while indicators gain some bullish tone in positive territory, still limited. In the 4 hours chart technical readings remain neutral, yet in the daily chart, 3 last candles show long lower shadows, which suggest buying on dips is still the name of the game. Watch for breaks above 1.0600 or below 1.0490 if news diverge strongly for expectations, leading the pair to a 40/60 pips continuation move.

Support levels: 1.0520 1.0490 1.0450

Resistance levels: 1.0580 1.0600 

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