EUR/USD Current Price: 1.0971
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Market is all about risk sentiment this Friday, with currencies being lead by the sharp decline in oil prices. US WTI crude futures broke below the $30.00 level in the European morning and accelerated its decline to fresh 12-year lows around 29.30, while Brent also plummeted below the 30.00 level. Stocks were under pressure worldwide, whilst gold prices recovery amid increasing risk aversion. The EUR/USD pair advanced up to 1.0925 and held around the highs ahead of the release of US data, with investors holding their breath ahead of the releases. Finally out, US figures disappointed big, as Retail sales in December, fell 0.1% monthly basis, while the core reading, ex-autos, also came out negative at 0.1%. The PPI readings matched expectations, whilst the New York Empire State Manufacturing Index for January plummeted to -19.37, sending the dollar broadly lower across the board.
The technical picture for the 1 hour chart has become firmly bullish, with the EUR/USD pair up to fresh highs in t the 1.0970 region, above its moving averages and with the technical indicators heading sharply higher above their mid-lines. In the 4 hours chart, the technical indicators are also heading north above their mid-lines, while the price extends above their mid-lines, but remains within the selling zone that has contained rallies ever since the year started. Some consolidation should be expected, with a break above 1.0950 favoring a run towards 1.1000 before the daily close, should upcoming US data continue to disappoint.
Support levels: 1.0920 1.0880 1.0845
Resistance levels: 1.1000 1.1045 1.1090
GBP/USD Current price: 1.4335
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The GBP/USD pair trades near its daily low, with the bearish trend prevailing, despite worse-than-expected US data released ahead of the US opening. The pair has stalled its decline, but the short term picture is strongly bearish, as in the 1 hour chart, the price is below a bearish 20 SMA, while the technical indicators maintain their sharp bearish slopes below their mid-lines. In the 4 hours chart, the technical picture is also bearish with the price extending below its 20 SMA and the technical indicators heading south below their mid-lines, with a limited bearish momentum at the time being.
Support levels: 1.4310 1.4260 1.4220
Resistance levels: 1.4350 1.4410 1.4460
USD/JPY Current price: 116.74
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Fresh lows, eyeing 116.10. The USD/JPY pair is trading at levels not seen since August, when China's Black Monday resulted in an almost 600 pips decline in the pair down to 116.13. The yen advanced earlier in the day as oil prices broke below $30.00 a barrel, triggering some risk aversion all across the financial world. The decline was later fueled by poor US manufacturing and retail sales data, which sent stocks to fresh daily lows ahead of the close. Technically, the 1 hour chart shows that the price has accelerated below its moving averages, whilst the technical indicators present sharp bearish slopes, entering oversold territory, but maintaining their negative slopes and supporting a test of the mentioned 116.10 region. In the 4 hours chart, the strong bearish momentum is also presents supporting the shorter term view as the pair already stands below its previous weekly low.
Support levels: 116.50 116.10 115.80
Resistance levels: 117.10 117.40 117.75
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