EUR unchanged, GBP heavy, AUD stronger

EUR/USD Current price: 1.3318

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Mixed picture out there, with the EUR/USD still nailed to the 1.3310/20 area, and despite the wider intraday range posted this Tuesday. Finding buyers and sellers both with even strength up at 1.3370, and down at 1.3250/60 Fibonacci support, the pair continues to lack clear direction, as Asian players come in.  Early news showed an improvement in confidence according to German ZEW survey, while Draghi late speech continues to remark the “solid progress” in public finances for troubled countries, adding nothing new to its latest words. From a technical point of view, there’s little to add to previous updates, as the technical readings in the hourly chart hold flat in neutral territory. At this point, a clear break of mentioned extremes is needed to confirm an intraday trend, with the downside still favored unless a break above 1.3410.

Support levels: 1.3290 1.3250 1.3220

Resistance levels: 1.3330 1.3350 1.3375 

GBP/USD Current price: 1.5838

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The GBP/USD gave up most of its intraday gains, following BOE’s governor King words, saying the central bank was ready to restart bond purchases or cut interest rates if needed to boost the economy. The Central Bank, will also review its inflationary target, although no major change is expected there. Despite holding above the recent lows around 1.5800/10, the pair enters Asia with a bearish short term tone, as the hourly chart shows indicators heading south below their midlines and price below a flat 20 SMA. The double roof around 1.6300 clear in daily basis, continues to be a big challenge for buyers: watch now for 1.5810 to give up to confirm a deeper slide short and midterm.

Support levels: 1.5820 1.5770 1.5730

Resistance levels:  1.5850 1.5885 1.5915 

USD/JPY Current price: 88.69

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The bearish potential for USD/JPY increases short term, after latest BOJ decision, but be aware there is a long ride ahead to even start talking about a reversal. The hourly chart shows price was unable to recover beyond 200 SMA, now offering dynamic resistance around 89.10, while indicators head south below their midlines, keeping the downside exposed. In bigger time frames such as 4 hours and daily, indicators also head lower, with daily ones also favoring a bearish corrective movement. Key support now is at 87.70 area, and if price does not bounce there, then there’s scope for a continuation towards 86.40/60 area. In the short term, daily low of 88.35 is immediate support and if broken, 87.70 comes at sight for today.

Support levels: 88.35 88.00 87.70

Resistance levels: 88.80 89.10 89.45 

AUD/USD: Current price: 1.0566

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The AUD/USD will face Australian CPI readings today, consolidating near its 2 week high despite hourly chart presents some bearish divergences, as momentum heads south nearing its midline. In the same time frame however, price stands above a strongly bullish 20 SMA, which suggest bears will still have to wait. In the 4 hours indicators hold positive territory while 20 SMA slowly turns up below current price, all of which suggests the pair may attempt a retest of the 1.0600 area. However, only once above this last the bulls will lead, with scope then to extend towards the 1.0660 price zone.

Support levels: 1.0550 1.0520 1.0490

Resistance levels: 1.0575 1.0600 1.0660


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