EUR/USD Current price: 1.1376
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The American dollar is broadly lower against all of its major rivals, but the Pound, as commodities and stocks soared with the European opening. The FED Minutes of the latest meeting released late Thursday, were seen as quite dovish, and despite several members saw a rate hike before the end of the year, the fact is that it also expressed their concerns over a weaker dollar and global turmoil. Also, the meeting was held before the latest awful payroll figures, which now add to speculation the FED won't be ready for a lift off until March next year. As for today's data, there were no relevant releases in Europe, whilst in the US attention is focused on upcoming speeches from FED members.
Technically, the EUR/USD pair presents a strong bullish tone, with the price at its highest in 3-weeks, reaching fresh weekly highs above the 1.1370 level ahead of the US opening. The 1 hour chart shows that the technical indicators are retreating some, but are still in extreme overbought levels, whilst the 20 SMA has accelerated strongly above the 100 and 200 SMAs. In the 4 hours chart, the price is above a bullish 20 SMA, whilst the technical indicators have lost their upward strength near overbought territory, far from signaling a downward corrective movement ahead.
Support levels: 1.1335 1.1295 1.1260
Resistance levels: 1.1425 1.1460 1.1500
GBP/USD Current price: 1.5341
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The GBP/USD pair retreated from a fresh weekly high of 1.5382, following the release of the UK trade balance for August, well below expected, as the deficit in goods trade balance resulted at £-11.149B, while the total trade balance came out at £-3.27B against previous £-3.37B. The pair however, is now recovering from a session low of 1.5321, and the 1 hour chart shows that the technical indicators have erased all of their extreme overbought readings, while trying to recover around their mid-lines. In the 4 hours chart, the price is holding above its 20 SMA and 200 EMA, maintaining the risk towards the downside, whilst the technical indicators lack now directional strength above their mid-lines.
Support levels: 1.5315 1.5260 1.5220
Resistance levels: 1.5385 1.5430 1.5480
USD/JPY Current price: 120.22
View Live Chart for the USD/JPY
Still directionless, but above 120.00. Risk appetite has helped the USD/JPY advance up to 120.34, but broad dollar's strength is preventing the pair from advancing further, despite the sharp advance in worldwide stocks. The pair retreated some from the mentioned high, meeting once again intraday selling interest around the a strong Fibonacci level, the 50% retracement of the latest weekly decline. Technically, the 1 hour chart shows that the price is above its 100 and 200 SMAs that anyway are horizontal, whist the technical indicators are turning lower near overbought levels. In the 4 hours chart, the Momentum indicator aims higher above its 100 level, whilst the RSI lacks directional strength around 53. The pair needs to advance beyond the 120.70 to be able to gain additional upward momentum, with the next strong resistance at 121.35, the top of these last months' range.
Support levels: 119.60 119.35 118.90
Resistance levels: 120.35 120.70 121.00
AUD/USD Current price: 0.7338
View Live Chart for the AUD/USD
The AUD/USD pair surged to a fresh 2-month high of 0.7343, trading a few pips below it ahead of the US opening, supported by dollar's sell-off an a strong upward momentum in gold prices, as spot trades well above the 1,150 level. The Aussie has a strong upward momentum against its American rival, and the 1 hour chart shows that the rally may extend over the upcoming hours, as the technical indicators are heading higher in overbought territory, after a limited downward corrective move, whilst the price has accelerated well above a bullish 20 SMA. In the 4 hours chart, the technical indicators are losing their upward strength but hold in overbought territory.
Support levels: 0.7320 0.7275 0.7240
Resistance levels: 0.7365 0.7400 0.7440
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