EUR/USD Current price: 1.0976
View Live Chart for the EUR/USD
The American dollar take a hit as European traders reached their desks, looking to sell the greenback. There was no clear catalyst behind the movement, although it has been partially attributed to positive news coming from Greece, as the local Parliament approved a second round of measures, requested by the country's European creditors. In the data front, the calendar remained light in the old continent, with only Spain unemployment figures for the Q2 released, slightly better-than-expected. In the US, the weekly unemployment claims resulted at 255K against 280K expected, much better-than-expected and the fewest since November 1973.
The EUR/USD pair was trading around the 1.1017 level ahead of the US data, but the positive employment figure put a break on dollar's decline. Nevertheless, the pair holds near the 1.1000 figure, and the 1 hour chart shows that the 20 SMA heads sharply higher below the current price, whilst the technical indicators are turning slightly lower in overbought territory. In the 4 hours chart, the technical indicators have lost their upward momentum but remain well above their mid-lines, limiting chances of a sharper decline. The immediate support stands at 1.0950/60, with short term buying interest probably surging on approaches to the level.
Support levels: 1.0955 1.0920 1.0860
Resistance levels: 1.1000 1.1045 1.1090
GBP/USD Current price: 1.5593
View Live Chart for the GPB/USD
The GBP/USD traded as high as 1.5670 on dollar broad weakness, but retreated down to a daily low of 1.5586 as the UK Retail Sales figures for June missed expectations. Retail Sales declined 0.2% in June, leaving the annual reading at 4.0% against expectations of a 4.9% advance. The pair however, managed to bounce from its low and recover the 1.5600 level, with intraday buyers surging around the 23.6% retracement of its latest bullish run between 1.5329 and 1.5674 at 1.5590. In the 1 hour chart, the price has slumped back after US positive data, and the 1 hour chart shows that the price failed to advance beyond its 20 SMA, whilst the technical indicators accelerate south below their mid-lines, anticipating some further declines. In the 4 hours chart, the price stands a few pips above a horizontal 20 SMA, whilst the technical indicators head slightly lower around their mid-lines, lacking bearish strength at the time being. The pair may now extend down to 1.5550, with a break below it required to confirm additional bearish momentum.
Support levels: 1.5550 1.5510 1.5470
Resistance levels: 1.5620 1.5675 1.5710
USD/JPY Current price: 123.95
View Live Chart for the USD/JPY
Struggling around 124.00. The USD/JPY pair fell back below the 124.00 figure as the dollar came under selling pressure with the European opening. The pair fell down to 123.67 before bouncing back towards the 124.00 region on the back of US employment data, and the 1 hour chart shows that the price recovered above its 200 SMA, whilst the technical indicators head sharply higher and are crossing their mid-lines towards the upside. In the same chart, the 100 SMA provides a strong dynamic resistance around 124.10, with at least a candle opening above it required to confirm another leg higher. In the 4 hours chart, however, the technical indicators are heading slightly higher below their mid-lines, suggesting there's little buying interest at the time being and confirming the shorter term view.
Support levels: 123.65 123.30 122.90
Resistance levels: 124.10 124.45 124.90
AUD/USD Current price: 0.7388
View Live Chart for the AUD/USD
The AUD/USD pair recovered the 0.7400 level amid dollar weakness, albeit selling interest capped the rally around 0.7416, whilst positive US data pushed the pair even lower ahead of the US opening. The 1 hour chart shows that the price is approaching a bullish 20 SMA, but that the technical indicators have turned sharply lower and are about to cross their mid-lines towards the downside. In the 4 hours chart however, the pair maintains a neutral-to-bearish technical stance, as the price is moving back and forth around a flat 20 SMA, whilst the technical indicators hover around their mid-lines, lacking directional strength.
Support levels: 0.7360 0.7325 0.7280
Resistance levels: 0.7400 0.7445 0.7470
Recommended Content
Editors’ Picks
USD/JPY briefly recaptures 160.00, then pulls back sharply
Having briefly recaptured 160.00, USD/JPY pulls back sharply toward 159.00 on potential Japanese FX intervention risks. The Yen tumbles amid news that Japan's PM lost 3 key seats in the by-election. Holiday-thinned trading exaggerates the USD/JPY price action.
AUD/USD extends gains above 0.6550 on risk flows, hawkish RBA expectations
AUD/USD extends gains above 0.6550 in the Asian session on Monday. The Aussie pair is underpinned by increased bets of an RBA rate hike at its May policy meeting after the previous week's hot Australian CPI data. Risk flows also power the pair's upside.
Gold stays weak below $2,350 amid risk-on mood, firmer USD
Gold price trades on a softer note below $2,350 early Monday. The recent US economic data showed that US inflationary pressures stayed firm, supporting the US Dollar at the expense of Gold price. The upbeat mood also adds to the weight on the bright metal.
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Week ahead: Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.