EUR/USD Current price: 1.1335
View Live Chart for the EUR/USD
The common currency closed the week with some solid gains against its American rival, with the EUR/USD pair ending at 1.1335, the highest since August 27th. Investors struggled to find reasons to buy the greenback, as tepid US data left high levels of uncertainty on what the FED may decide this Wednesday. While a rate hike is still possible, most traders are betting on a delay towards next December.
China also had its saying, with fears of an economic slowdown spreading through other major economies, still weighing on sentiment. Over the weekend, news showed that China’s industrial production growth remained weak in August, reaching 6.1% compared to a year before, but marginally higher from the 6.0% printed last month. Also, growth in fixed asset investment slowed to its lowest rate growth in over three years in August, down to 9.2% from 10.3% previous.
Technically, bulls continue dominating the pair, as the daily chart shows that the rally extended well above its 100 DMA in the 1.1100 region, whilst the 20 SMA heads higher around 1.1275, reinforcing the static support placed at 1.1282, the 61.8% retracement of its latest bullish run. In the same chart, the Momentum indicator is around its 100 level with a sharp upward slope, whilst the RSI indicator heads higher around 59. In the 4 hours chart the price is also above a bullish 20 SMA, although the technical indicators have lost upward strength and turned flat, with the RSI at 70. The immediate resistance comes at 1.1365, the 50% retracement of the same rally, with a break above it favoring a steady continuation towards the 1.1440/50 price zone.
Support levels: 1.1315 1.1280 1.1240
Resistance levels: 1.1365 1.1400 1.1445
EUR/JPY Current price: 136.70
View Live Chart for the EUR/JPY
The EUR/JPY advanced on the back of EUR's strength, with the JPY slightly weak amid a soft positive close in worldwide stocks. The pair reached advanced up to 136.92 last Friday, and closed the day a few pips below it, and right above its 100 DMA, whilst in the same chart, the technical indicators maintain their bullish slopes after crossing their mid-lines towards the upside, supporting additional gains for this Monday. In the 4 hours chart, however, the technical indicators are giving signs of upward exhaustion in overbought levels, although the price is above its moving averages, not yet confirming a downward corrective move. The immediate support stands at 136.30, and a pullback to the level is possible, yet the price needs to extend below the level to confirm a downward continuation for the upcoming sessions.
Support levels: 136.30 135.80 135.35
Resistance levels: 137.20 137.70 138.20
GBP/USD Current price: 1.5428
View Live Chart for the GPB/USD
The British Pound corrected higher against the greenback last week, but the pair failed to retake the 1.5500 level, closing at 1.5428. BOE's inflation report showed that policy makers expect inflation to remain near zero during the upcoming months, although expectations were revised higher from 2.0% to 2.2%. Pound's rally lost steam afterwards, but the GBP/USD pair hold above the 38.2% retracement of its latest daily decline around 1.5410, now the immediate support. Technically, the daily chart shows that the price is actually converging with a still bearish 20 SMA, whilst the RSI indicator lost upward strength around 49 and the Momentum indicator heads higher, but below the 100 level, all of which limits chances of a stronger advance. In the 4 hours chart, the price failed to advance beyond the 200 EMA, currently around 1.5470, whilst the technical indicators are horizontal above their mid-lines, losing the upward strength seem earlier this week. At this point, the price needs to extend beyond 1.5490, the 50% retracement of the mentioned slide, to recover further over the upcoming sessions.
Support levels: 1.5410 1.5365 1.5320
Resistance levels: 1.5450 1.5490 1.5525
USD/JPY Current price: 120.58
View Live Chart for the USD/JPY
The USD/JPY pair managed to close the week with gains, albeit the recovery stalled at 121.35, the 61.8% retracement of its latest bearish run. Both Central Banks, the BOJ and the FED, will have their monthly economic meetings during the upcoming days, and whilst the BOJ is largely expected to remain on hold, the FED can rock the financial world by announcing a rate hike, for the first time in almost a decade. Therefore, the pair will likely trade range bound ahead of the news, in between 120.00 and 121.35. Technically, the daily chart shows that the price has been unable to advance beyond its 200 DMA, a few pips below the mentioned Fibonacci retracement, whilst the Momentum indicator turned south and it's about to signal a bearish breakout, whilst the RSI indicator already heads south around 46, all of which favors the downside. In the 4 hours chart, the pair presents a neutral-to-bearish stance, as the Momentum indicator heads lower below the 100 level, whilst the RSI stands flat around 53.
Support levels: 120.35 120.00 119.60
Resistance levels: 120.90 121.35 121.80
AUD/USD Current price: 0.7091
View Live Chart for the AUD/USD
The AUD/USD pair closed the week with gains at 0.7091, as the Aussie got support from a better-than-expected local jobs report released last Thursday that sent the pair close to the 0.7100 figure, still a major resistance. Australian unemployment rate dropped in August to 6.2% as expected, while the economy managed to create 17.400 new jobs, tripling expectations. The pair also found support from improved inflation readings in China, although giving the fragility of the second world's largest economy, the Aussie is in risk of suffering sudden declines. Technically, the upside is still seen limited as the price has stalled below a bearish 20 SMA, whilst the technical indicators have lost their upward strength below their mid-lines, after correcting extreme oversold readings reached the previous week. Shorter term, the 4 hours chart presents a bullish tone, given that the 20 SMA heads higher below the current price, providing an immediate support around 0.7040, whilst the technical indicators maintain their bullish slope after bouncing from their mid-lines.
Support levels: 0.7040 0.7000 0.6965
Resistance levels: 0.7105 0.7135 0.7170
Recommended Content
Editors’ Picks
EUR/USD holds gains near 1.0950 ahead of US PPI data
EUR/USD is back on the bids, hovering around 1.0950 in the European session on Friday. Despite, a broad-based US Dollar retreat, the pair seems to lack further bullish impetus, as risk sentiment remains sour ahead of US producer inflation data and Fedspeak.
GBP/USD rises toward 1.3100 after UK data
GBP/USD has gained upside traction toward 1.3100 during Friday's European trading, in a delayed reaction to the UK GDP and the industrial growth in August. Traders now look to the US PPI data for short-term impetus, as the US Dollar consolidates weekly gains.
Gold price remains below $2,650 amid modest USD uptick, look to US PPI for fresh impetus
Gold price attracts some follow-through buying for the second straight day on Friday and recovers further from a nearly three-week low, around the $2,602 area touched the previous day.
Bitcoin finds support around $60,000
Bitcoin is finding support around the key level, and a close below this level could signal a decline. Ethereum is approaching a critical resistance barrier; rejection from this level suggests a decline ahead. Meanwhile, Ripple is stuck in a range, reflecting a period of indecision among traders.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.