EUR/USD Current price: 1.0815
View Live Chart for the EUR/USD
The dollar trades generally higher this Friday, except against the Japanese yen, running on the back of BOJ's announcement of a stimulus extension. The dollar suffered a knee-jerk across the board, with the news, sending the EUR/USD pair up to 1.0868, although the European opening saw the pair erasing in minutes its previous daily gains, and sinking down to 1.0804, from where it bounced. Nevertheless, the lack of relevant macroeconomic releases in Europe is keeping the pair limited within a tight range ahead of the US opening. Later today, the US will release the preliminary readings of their December Markit PMI figures, which may determinate how the market will end this week.
Technically, the 1 hour chart for the EUR/USD pair shows that the price is trying to advance some above its 20 SMA, while the RSI indicator heads north around 47 and the Momentum indicator remains stuck around its 100 level, showing no actual directional strength. In the 4 hours chart, however, the downside is still favored, given that the price remains well below a bearish 20 SMA, while the technical indicators remain well below their mid-lines, having already corrected the extreme oversold readings reached late Wednesday.
Support levels: 1.0790 1.0750 1.0720
Resistance levels: 1.0840 1.0880 1.0915
GBP/USD Current price: 1.4912
View Live Chart for the GPB/USD
The GBP/USD pair hovers above the 1.4900 mark this Friday, trading below its daily opening of 1.4926. The Pound was unable to benefit from dollar's weakness during the Asian session, and bounces were limited by selling interest in the 1.4940/50 region. Additionally, the lack of macro data in the UK is preventing the pair from moving far away. The pair maintains the negative tone seen on previous updates, although the bearish potential has eased in the short term, as in the 1 hour chart, the price is hovering around a flat 20 SMA, while the technical indicators diverge from each other in neutral territory. In the 4 hours chart, the price remains well below its 20 SMA, while the technical indicators have turned flat well below their mid-lines, after correcting the oversold readings reached earlier this week. Renewed selling interest below 1.4900 should lead to a retest of the lows at the 1.4860 region, en route to an approach to the 1.4800 figure.
Support levels: 1.4900 1.4860 1.4815
Resistance levels: 1.4950 1.4995 1.5050
USD/JPY Current price: 121.46
View Live Chart for the USD/JPY
Back bearish, break of 121.05 required. The Japanese Yen appreciated during the Asian session, as the BOJ announced some changes in its economic policy, in an effort to boost local inflation that remains far below the 2.0% target. The Central Bank established a new program for purchases of ETF's , at an annual pace of 300B, and expand the eligible collateral for Bank credit, including foreign currency denominated loans and housing loan portfolios. The USD/JPY has lost almost 150 pips following the news, finally finding buyers around 121.05, level that contained declines also during the European morning. Technically however, the pair is once again bearish, with the 1 hour chart showing that the price has broken below its 100 and 200 SMAs, while the technical indicators are now bouncing from oversold levels, but lack upward strength and remain far below their mid-lines. In the 4 hours chart, the bearish potential has lost momentum but is far from reversing, indicating the risk remains towards the downside as long as the price holds below the 121.70 level, now the immediate resistance.
Support levels: 121.05 120.60 120.30
Resistance levels: 121.70 122.20 122.66
AUD/USD Current price: 0.7124
View Live Chart for the AUD/USD
The AUD/USD pair trades near its recent lows, having barely higher during the Asian session. The strong decline in gold prices and in general in all precious metals, is keeping the Aussie under pressure with the pair now finding selling interest on approaches to the 0.7160/70 region, the immediate resistance. The short term technical picture is neutral-to-bearish as in the 1 hour chart the pair is below a horizontal 20 SMA, while the technical indicators head slightly lower around their mid-lines. In the 4 hours chart, the price remains far below its moving averages, while the technical indicators lack directional strength near oversold levels, rather signaling some consolidation than suggesting an upward corrective movement ahead.
Support levels: 0.7090 0.7050 0.7010
Resistance levels: 0.7160 0.7200 0.7240
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