EUR/USD Current price: 1.1169
View Live Chart for the EUR/USD
The common currency plunged around 150 pips against the greenback, following ultra dovish comments from ECB's President, Mario Draghi. The head of the ECB reiterated that they will maintain QE until September 2016 or beyond if needed, but added that monetary accommodation will be "re-examined" in December. Additionally, he said that officials discussed the possibility of cutting rates further into negative territory, and while he did actually nothing, the dovish tone and the possibility of a rate cut in December was enough to force investors out of the EUR. Stocks accelerated in Europe and the US after the news, fueled also by better-than-expected US weekly unemployment claims.
Technically, the 1 hour chart shows that the pair continues pressuring the lows in the 1.1170 region, with quite limited pullbacks seen so far today. In the same chart, the technical indicators maintain their sharp bearish slopes in extreme oversold levels, leaving little room for an upward corrective movement at the time being. In the 4 hours chart, the technical indicators have turned sharply lower below their mid-lines, whilst the price has extended well below its moving averages, supporting a continued decline towards 1.1120 a major support level-
Support levels: 1.1160 1.1120 1.1080
Resistance levels: 1.1245 1.1290 1.1335
GBP/USD Current price: 1.5399
View Live Chart for the GPB/USD
The GBP/USD pair advanced up to 1.5507 early Europe, on an upward surprise coming from the UK Retail Sales data, which resulted much better-than-expected in September. The pair however, was limited by speculative selling that has contained advances around the 1.5500 figure, ever since the week started. Improved US data and the negative tone of the ECB, dragged the pair to a fresh weekly low of 1.5386, and it currently holds a handful of pips below the 1.5400 figure, with the 1 hour chart suggesting the pair may decline further, as the technical indicators head sharply lower below their mid-lines, whilst the price is now extending below its 20 SMA. The pair has a strong Fibonacci support at 1.5380, the 50% retracement of its latest daily decline, and a break below it will likely signal additional declines during the rest of the day. In the 4 hours chart, the technical indicators turned lower in negative territory, presenting a limited bearish momentum at the time being, given that the price is not far away from its latest range.
Support levels: 1.5380 1.5350 1.5320
Resistance levels: 1.5415 1.5450 1.5495
USD/JPY Current price: 120.28
View Live Chart for the USD/JPY
Pressuring a critical resistance at 120.35. The USD/JPY pair soared up to 120.36 and trades nearby at the beginning of the US session, boosted by dollar's demand after a dovish ECB's Draghi. The European Central Bank has announced it will review the amount of its QE next December, whilst during this meeting, discussed the possibility of cutting rates further into negative territory. Also, US weekly unemployment claims resulted at 259K better than the 265K expected. Technically speaking, the pair presents a strong upward potential, as the technical indicators continue heading north near overbought levels, whilst the price is well above its 100 and 200 SMAs. In the 4 hours chart, the technical indicators also present a strong upward momentum, in line with additional advances. Nevertheless, the pair needs to clearly break a major Fibonacci resistance that converges with the mentioned daily high, to confirm a steady advance up to the 121.00 price zone.
Support levels: 119.70 119.35 118.90
Resistance levels: 120.35 120.70 121.10
AUD/USD Current price: 0.7231
View Live Chart for the AUD/USD
The AUD/USD pair is quickly recovering from an early dip below the 0.7200, as despite ongoing dollar demand, Aussie is being benefited by the strong upward momentum in stocks. Nevertheless, the pair is still below the key 0.7240 resistance, and needs to extend beyond it to confirm further gains. The 1 hour chart shows that the technical indicators head higher after crossing their mid-lines, whilst the price is above its 20 SMA, in line with an upward continuation. In the 4 hours chart, however, the technical indicators remain in negative territory, whilst the 20 SMA heads strongly lower in the 0.7240 region, confirming the strength of the static resistance level.
Support levels: 0.7205 0.7170 0.7130
Resistance levels: 0.7240 0.7290 0.7335
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