EUR/USD: waiting for FOMC above 1.3400

EUR/USD Current price: 1.3403

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The EUR/USD managed to advance some this Tuesday, breaking and standing a few pips above the 1.3400 level. Market players had been pretty cautious ahead of tomorrow’s FED economic policy announcement, with the possibility of some tapering already priced in. Still, the announcement and more over, the extension of such tapering, if done, could rock the markets. Anyway, the EUR/USD maintains a bullish tone according to the hourly chart, as price recovered from a short term ascendant trend line to quickly overcome its 20 SMA, while indicators hold in positive territory. The lack of volume at the time being helps indicators turn flat and lack momentum, but there are no signs the upside is not still favored. In the 4 hours chart technical readings present a strong upward momentum, favoring a continuation towards 1.3520, next strong midterm resistance level.

Support levels: 1.3360 1.3330 1.3290

Resistance levels: 1.3410 1.3440 1.3480

EUR/JPY Current price: 127.61

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The EUR/JPY found support in surging stocks, rising up towards 128.06 before finding sellers. The hourly chart shows price well above a still bearish 100 SMA and limited by the 200 one, while indicators stand in positive territory. In the 4 hours chart, indicators stand above their midlines but quite close to them, giving a neutral technical stance. Overall, steady gains above 128.10 may favor an advance towards 128.80 area, that probe strong in the past. Only steady gains above it will put the pair closer to the bullish path.

Support levels: 127.40 126.90 126.30

Resistance levels: 128.10 128.40 128.80

GBP/USD Current price: 1.5648

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The GBP/USD recovered from a strong kneejerk triggered with UK higher than expected inflation, still intraday negative but above the 1.5600 mark. Having been as low as 1.5564, the pair recovered slowly but steadily in the US session, with the hourly chart now showing price capped below 20 SMA and indicators losing upward potential below their midlines, which suggest the upside is still limited. In the 4 hours chart technical readings stand around their midlines, while 20 SMA offers dynamic resistance around 1.5700: price needs to recover above this last to be able to run higher again, while lost of the 1.5610 support will expose the downside to fresh weekly lows.

Support levels: 1.5610 1.5560 1.5520

Resistance levels: 1.5660 1.5700 1.5750

USD/JPY Current price: 95.22

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The USD/JPY also managed to advance some, although found selling interest around 95.80. Technical readings show a slightly short term bullish tone, as price stands above 100 SMA and indicators above their midlines, but buying interest remains quite limited. In the 4 hours chart technical readings remain neutral, which suggests market will remain ranging around 95.00 until FOMC announcement. 

Support levels: 94.90 94.50 94.10

Resistance levels: 95.30 95.75 96.05 

AUD/USD: Current price: 0.9478

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AUD/USD remains under pressure, resuming the bearish trend seen starting early May after some limited relief past week. Back below the 95.00 level, the hourly chart shows 20 SMA limiting the upside and acting as dynamic resistance around 0.9500 while indicators turn south below their midlines, reflecting the lack of buying interest. In the 4 hours chart price stands well below 20 SMA as indicators turn flat in negative territory, supporting the shorter term view.

Support levels: 0.9420 0.9380 0.9345

Resistance levels: 0.9510 0.9560 0.9600