EUR/USD Current price: 1.0751
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The EUR/USD pair trades at its lowest since December 3rd, with the dollar broadly higher and the common currency being hit by softer-than-expected EU inflation figures. Following poor German inflation on Monday, the euro area annual inflation in December 2015 is estimated to have been of 0.2% below expectations of an advance up to 0.3%, while the core reading retreated to 0.8% from the previous 0.9%. The pair fell further with the news, and points to extend its decline during the upcoming American session, given that the price has been unable to bounce in its way south. The 1 hour chart shows that the price has extended below a bearish 20 SMA, currently around 1.0810, while the technical indicators are losing their bearish strength in oversold territory, rather reflecting the ongoing short term consolidation than suggesting an upward move. In the 4 hours chart, is clear that the price is below the 50% retracement of the December rally, whilst the technical indicators are hovering near oversold readings, and the price develops below a bearish 20 SMA, all of which favors a downward continuation.
Support levels: 1.0720 1.0685 1.0660
Resistance levels: 1.0780 1.0810 1.0845
GBP/USD Current price: 1.4678
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The GBP/USD pair established yet a fresh 8-month low at 1.4660 this Tuesday, under pressure despite the UK December construction PMI resulted above expected, printing 57.8 against the previous 55.3. The pair maintains the bearish tone seen on previous updates, and will likely continue sliding as in the 1 hour chart, the price develops below a bearish 20 SMA, whilst the technical indicators head lower well below their mid-lines, following a limited upward corrective move. In the 4 hours chart, the price remains well below a bearish 20 SMA, although the technical indicators lack bearish strength near oversold territory, pointing fo r a consolidative stage, before the next directional move.
Support levels: 1.4660 1.4620 1.4585
Resistance levels: 14725 1.4755 1.4790
USD/JPY Current price: 119.02
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Yen holds to its strength. The USD/JPY pair recovered some ground during the Asian session, but selling interest capped the rally in the 119.60 region, keeping the short term bearish trend firm in place. The recovery was supported by easing risk aversion, yet the Japanese yen refuses to give back the ground gained earlier this week. Technically, the 1 hour chart shows that the technical indicators remain biased south below their mid-lines, whilst the price is declining well below its 100 and 200 SMAs, both sharply bearish. In the 4 hours chart, the technical bias is also towards the downside yet a break below 118.70 is required to confirm a new leg lower towards the 118.00 region.
Support levels: 118.70 118.35 118.00
Resistance levels: 119.20 119.60 120.00
AUD/USD Current price: 0.7171
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The Australian dollar advanced against its rivals during the Asian session, reaching 0.7214 against the greenback before turning back south early Europe, on broad dollar's strength. Despite holding above the weekly low, the rejection from the 0.7200 figure indicates an increasing bearish potential, and the 1 hour chart shows that the price is below a flat 20 SMA, whilst the technical indicators have turned horizontal within negative territory. In the 4 hours chart, the bearish tone is even clearer, given that the technical indicators have resumed their declines after a limited upward corrective move, whilst the 20 SMA has turned sharply lower above the current level, now reinforcing the static resistance level at 0.7240.
Support levels: 0.7160 07130 0.7100
Resistance levels: 0.7205 0.7240 0.7280
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