EUR/USD: short term bounce

EUR/USD Current price: 1.2712

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Dollar eases along with stocks ahead of US opening, with the EUR/USD bouncing up to current daily highs. Early data show German inflation data come out in line with previous month readings, slightly above expected. In the US front, Personal consumption data result a bit better than expected, with Core reading steady at 1.5% against an expected drop to 1.4%. Greenback remains under pressure in the short term, as local share markets point to open with strong losses. Technically, the 1 hour chart shows price advancing above a flat 20 SMA with momentum heading higher above 100 and RSI also in positive territory. In the 4 hours chart RSI barely corrected oversold readings, while momentum stands below 100 and 20 SMA heads lower above current price. The bounce can extend as high as 1.2760/70 price zone, moreover if stocks enter selloff mode, yet further advances seem unlikely for these first days of the week.

Support levels:  1.2660 1.2625 1.2590

Resistance levels: 1.2715 1.2740 1.2770

GBP/USD Current price: 1.6253

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The GBP/USD trades range bound between a daily low of 1.6209 posted early Asia, and a daily high of 1.6261 reached early European opening, with a mild positive tone according to the 1 hour chart as price extends above a flat 20 SMA and indicators head higher around their midlines, lacking strength at the time being. In the 4 hours chart however, the bearish tone prevails, with 20 SMA presenting a clear bearish slope around 1.6300 and indicators directionless well into negative territory. A price acceleration above this last should lead to a quick advance up to 1.6340/50 price zone, strong static resistance level.

Support levels: 1.6220 1.6190 1.6160

Resistance levels: 1.6260 1.6300 1.6345 

USD/JPY Current price: 109.19

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The USD/JPY eases from a fresh year high established at 109.74 following the slide in stocks, with the hourly chart showing price approaching 100 SMA immediate short term support currently at 108.95. Indicators in the same time frame head lower below their midlines, while the 4 hours chart shows indicators turned strongly south and rest now above their midlines. A break below mentioned support may see the pair extending quickly towards 108.50 price zone, where buyers have been surging over the last week. A break below this last however, may see another leg lower, with risk turning to the downside for the upcoming sessions.

Support levels: 108.95 108.50 108.20 

Resistance levels:  109.45 109.80 110.20

AUD/USD Current price: 0.8734

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Australian dollar sees no relieve against the greenback, with the pair extending its bearish move down to 0.8683 this Monday, trading now back above the 0.8700 mark. The 1 hour chart shows price hovering around a bearish 20 SMA, while indicators corrected higher, but remain below their midlines now losing upward strength. In the 4 hours chart the overall bearish tone prevails with 20 SMA acting as latest intraday resistance in the 0.8800 price zone.

Support levels: 0.8710 0.8680 0.8635

Resistance levels: 0.8770 0.8800 0.8840