EUR/USD: Dovish Draghi, bearish trend

EUR/USD Current price: 1.2904

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Not a good day in Europe, as both Central Banks, the BOE and the ECB, came with a dovish stance that sent local currencies strongly down against their American rival. The EUR/USD fell down to 1.2883 so far, finding as expected some buying interest around the strong static support level, yet unable so far to regain ground beyond 1.2920, former low and immediate resistance. With the US market closed on holiday, there’s a chance we lack volume enough to trigger another strong rally, but the downside remains favored with a break to fresh lows opening doors for attest of the 1.2800 area.

Support levels: 1.2880 1.2840 1.2800 

Resistance levels: 1.2920 1.2950 1.2985

GBP/USD Current price: 1.5085

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Extremely oversold in the hourly chart, the GBP/USD was hit hard for an unexpected, also dovish statement from the BOE. The pair reached a daily low of 1.5059 before managing to bounce some, still unable to recover the 1.5100 mark. The 4 hours chart shows a strong bearish momentum that supports further slides once buying interest around 1.5050 gets overcome. The key 1.50 figure should contain the downside, at least today ahead of US employment figures tomorrow.

Support levels: 1.5050 1.5010 1.4970

Resistance levels: 1.5130 1.5160 1.5200

USD/JPY Current price: 100.06

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Dollar momentum is helping USD/JPY recover the 100.00 mark, although there has been little reaction in the pair that remains range bound. The hourly chart shows price barely above its 100 SMA currently around 99.80, while indicators stand in neutral territory. In bigger time frames, the pair presents a slightly bullish tone, but limited as long as price stands below 100.30.

Support levels: 99.80 99.50 99.25 

Resistance levels: 100.30 100.70 101.10

AUD/USD: Current price: 0.9134

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The AUD/USD is barely changed after the news, holding near 0.9150 resistance after recovering some ground during past Asian session. The hourly chart shows price heading higher above a bullish 20 SMA that offers dynamic support currently around 0.9105, while indicators head north above their midlines, which supports some gains in the pair. In the 4 hours chart price struggles right below 20 SMA, while indicators head higher still below their midlines: a price acceleration above 0.9150 is now required to confirm an advance up to 0.9200/20 area.

Support levels: 0.9195 0.9060 0.9020 

Resistance levels:  0.9150 0.9190 0.9220

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