EUR/USD: no correlations today

EUR/USD Current price: 1.3314

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With US stocks set to open near a multi-year high and gold firming near $ 1700/oz, one should had expected EUR/USD to breach 1.3400. However, the pair trades heavily, having suffered a knee jerk down to 1.3295 on market rumors involving LTRO. Nothing was official or confirmed. On contrary, the EU authorities are full of positive news: Spain has met conditions to receive aid, and Greece will likely get its next tranche of aid. The EUR/USD however, continues trading heavily and the hourly chart shows indicators heading strongly south below their midlines, while current candle opened below the 1.3320 Fibonacci level, now short term resistance. If the pair is unable to quickly regain it, there’s scope for a retest of 1.3250/60 weekly lows and 38.2% retracement of the same rally. With a double top developing at 1.3400, the 1.3250/60 area stands as the neckline: expect increasing bearish momentum if the level gives up.

Support levels:  1.3290 1.3250 1.3210

Resistance levels: 1.3320 1.3360 1.3400

GBP/USD Current price: 1.5925

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The GBP/USD was accelerated today by worse than expected Retail Sales in the UK, that printed-.0.1% against a 0.2% gain. So far the daily low stands at 1.5908, with the hourly chart still holding a bearish tone: 20 SMA continues to gain bearish slope above current price while the pair reaches lower lows with lower highs. Indicators in the mentioned time frame are attempting to head higher near oversold readings, yet unless a strong recovery above 1.5950, the upside seems well limited. Main target now lies at 1.5820, past November monthly low.

Support levels: 1.5900 1.5865 1.5820

Resistance levels: 1.5950 1.5990 1.6020 

USD/JPY Current price: 89.95

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Stuck below 90.00, the USD/JPY maintains its bullish tone, supported by Japanese PM Abe, who stated that Japan should not worry unless the pair breaks above 110.00. In the hourly chart, technical indicators maintain a neutral stance, while moving averages are slowly turning north below current price. With not much short term strength, bigger time frames hold to a strong bullish momentum, which suggest the downside will also remain limited. Break above 90.00 and steady gains above will expose 92.50 for next week.

Support levels: 89.65 80.30 89.00

Resistance levels: 90.10 90.40 90.75

AUD/USD: Current price: 1.0507

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Aussie trades lower against the greenback, bouncing again from 1.0490 support yet unable to extend this time beyond 1.0520 resistance. The hourly chart shows 20 SMA gaining bearish slope above current level and offering dynamic resistance also around 1.0520, while indicators hold in negative territory. In the 4 hours chart however, and despite technical readings hold in negative territory, there’s no bearish strength. Overall, the downside is favored with a clear break of 1.0490, targeting then the 1.0430 price zone.

Support levels: 1.0490 1.0450 1.0430

Resistance levels: 1.0520 1.0550 1.0580


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