EUR/USD Current price: 1.3796
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The picture has changed 180° degrees for the greenback, in this second trading day of the week: having approached to breakout levels particularly against its European rivals last Friday, the rally succumbed to falling stocks and macro news favoring dollar counterparts. The forex market looks finally lively, but the EUR/USD may not be the best choice nowadays: the pair has again halted around the messy area right above 1.3800 on news the ECB “Stands ready to act if needed to stop euro zone inflation getting stuck at low levels†according to Bundesbank chief Jens Weidmann.
The EUR/USD is among the worst performers of the day, considering it maintains its latest weeks range. Still the bounce from the long term ascendant trend line is not a minor technical data, is just that seems not enough just yet. Short term, the hourly chart shows indicators exhausted in overbought levels still not suggesting a bearish correction, while 20 SMA heads strongly up well below current price. In the 4 hours chart technical readings maintain a strong bullish tone while price recovered above its 200 EMA all of which suggest more gains are likely: a technical confirmation will come with a break above 1.3830, a daily descendant trend line coming from 1.3966 this year high.
Support levels: 1.3780 1.3750 1.3720
Resistance levels: 1.3830 1.3865 1.3910
EUR/JPY Current price: 140.22
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BOJ inaction has been the kick start of a yen rally that extended all through this Tuesday, feed also by falling stocks. In the US, indexes managed to recover most of the lost ground in a modest rebound after these last days’s selloff. But yen maintains its strength against most of its rivals, not willing to give an inch: the EUR/JPY has retraced almost 100% of its latest bullish run and trades a few pips above the 140.00 figure, maintaining a strong bearish tone in its hourly chart: 100 SMA added a strong bearish slope and converges with 200 one around 142.00, while momentum maintains the bearish bias. In the 4 hours chart technical readings also present a clear bearish tone, while the daily candle points for a close below 100 DMA first time since early February. A break below the 140.00 level, should signal a steady downward continuation, eyeing in the short term 138.80 price zone.
Support levels: 139.90 139.35 138.80
Resistance levels: 140.40 140.90 141.30
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