EUR/USD: FED makes some noise, but offers nothing new

EUR/USD Current price: 1.0645

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The EUR/USD pair extended its decline down to 1.0622 at the beginning of the American afternoon, but held around 1.0650 ahead of the event of the day, the release of the FOMC October meeting Minutes. The FED made some hawkish shifts to its  previous statement back then, mentioning that it will determine “whether it would be appropriate to raise the target range at its next meeting” triggering a strong dollar rally that prevails up to these days.  The  release of the minutes drove the pair down to 1.0616, a fresh multi-month low, as the statement says that “it may well become appropriate” to raise the benchmark lending rate in December, although officers remarked that the decision is still data dependant. 

Bottom line, the minutes confirmed what the market suspects that is, that a lift off could be triggered next December, but of course, it's still not confirmed. The dollar retreated against most of its rivals after the initial spikes, but maintains a dominant bullish tone, which should lead to a continued advance over the upcoming sessions. Technically, the pair's  4 hours chart shows that the price is developing below a bearish 20 SMA whilst the technical indicators are advancing from oversold levels, but remain well below their mid-lines. The upward corrective movement can extend on a rally beyond 1.0690, although the risk remains towards the downside, and selling interest will likely surge on advances up to the 1.0750 region.

Support levels: 1.0620 1.0585 1.0540

Resistance levels: 1.0690 1.0720 1.0750 

EUR/JPY Current price: 131.53

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The EUR/JPY pair is hovering a few pips above its daily opening, given that the Japanese yen weakened after the FED's Minutes release, but the dominant bearish trend remains firm in place, and intraday charts suggests further declines are likely. Technically, and in the 1 hour chart, selling interest is surging on advances towards a bearish 100 SMA, while the technical indicators present limited upward slopes around their mid-lines, rather reflecting the ongoing bounce than suggesting further gains. In the 4 hours chart, however, the price is well below its moving averages, with the 100 SMA presenting a strong bearish slope in the 132.20 region, while the Momentum indicator heads lower below its 100 level and the RSI aims slightly lower around its mid-line, in line with the ongoing bearish tone. 

Support levels: 130.90 130.55 130.20

Resistance levels: 131.70 132.10 132.60 

GBP/USD Current price: 1.5222

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The GBP/USD pair continued seesawing around the 1.5200 level this Wednesday, advancing up to a daily high of 1.5248 in the European morning as BOE's member Broadbent said that the Central Bank´s inflation forecast is not as relevant as the economic behavior when it comes to determinate when to rise rates. The rally, however, was short lived, and the same happened post-FED´s Minutes as the pair is still unable to leave the range set at the beginning of the week. The technical stance is neutral in the short term, although a tepid positive tone is surging in the 1 hour chart, as the price has held above a horizontal 20 SMA while the technical indicators head higher well above their mid-lines. In the 4 hours chart, the 20 SMA continues lacking directional strength around the 38.2% retracement of the latest weekly decline around 1.5210, while the technical indicators are slowly turning higher above their mid-lines, lacking enough momentum to confirm further gains. 

Support levels: 1.5200 1.5160 1.5120 

Resistance levels: 1.5265 1.5320 1.5355

USD/JPY Current price: 123.51

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The American dollar extended its rally against its American counterpart up to a fresh 3-month high of 123.74 following the release of the FOMC Minutes of the October meeting, although the pair failed to sustain gains beyond 123.60, and trades a few pips below this last ahead of the Asian opening. The FED had a limited impact over US indexes, which pretty much is telling that stocks' traders have already priced in a December hike. Technically, the upside prevails in the short term, as in the 1 hour chart, the price is holding well above its 100 and 200 SMAs, both aiming higher around 123.00, while the technical indicators present bullish slopes in positive territory. In the 4 hours chart, the price is also far above its moving averages, but the technical indicators are beginning to look exhausted near overbought territory, supporting a downward corrective movement ahead, particularly on a break below 123.20, the immediate support. 

Support levels: 123.20 122.80 122.30 

Resistance levels: 123.60  123.95 124.40

AUD/USD Current price: 0.7092

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The Australian dollar edged slightly lower this Wednesday, weighed at the beginning of the day by a strong slump in metals, particularly cooper, which fell again towards record lows. The AUD/USD pair, however, traded within its latest range, having extended its decline by a few pips, and reaching 0.7068 right after the US Central Bank's Minutes release. The pair presents a bearish short term tone, given that in the 1 hour chart, the price failed to recover above a bearish 20 SMA, while the technical indicators hold deep in negative territory. In the 4 hours chart, the price remains well below a bearish 20 SMA although the technical indicators have turned slightly higher, but are still below their mid-lines, something that at least should maintain the downside limited in the short term. Anyway, renewed selling pressure that sends price below 0.7070, should finally see bulls capitulate, and the pair declining down to the 0.7000 region. 

Support levels: 0.7070 0.7030 0.6990

Resistance levels: 0.7150 0.7190 0.7240