EUR/USD Current Price: 1.0897
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Risk trading led the way early Wednesday, with the EUR/USD pair reaching a daily high of 1.0975 as European stocks opened sharply lower following Asian ones nosedive. The negative sentiment remains, but the common currency turned lower against the greenback alongside with the Japanese yen, after the Bank of Japan warned that "they are closely watching" price developments, with no other fundamental reason for the intraday decline. Is true, the pair was near the top of its latest range, approaching the selling zone that contained rallies ever since mid December. Worse than expected US CPI readings, down by 0.1% in December, should keep the downside limited during the upcoming US session, but the technical picture shows that the price faltered around its 100 DMA, while in the short term, the 1 hour chart shows that the price is at fresh daily lows and breaking below its 100 SMA, while the technical indicators head south below their mid-lines, increasing the risk of further declines. In the 4 hours chart, however, the technical indicators maintain a neutral stance, while the price is back between its moving averages.
Support levels: 1.0880 1.0845 1.0800
Resistance levels: 1.0925 1.0965 1.1000
GBP/USD Current price: 1.4172
View Live Chart for the GBP/USD
The GBP/USD pair trades near a fresh low set at 1.4124, having been unable to rally despite the UK employment report resulted generally positive, as wages remained high in spite of rising 1.9%, slightly below expected, and the unemployment rate fell to 5.1% the lowest since early 2006. The pair however, is unable to advance beyond 1.4200, and the 1 hour chart shows that the price is currently struggling around a flat 20 SMA, while the technical indicators head slightly lower below their mid-lines, without actual momentum. In the 4 hours chart, the 20 SMA has declined above the current level, and has been a key dynamic resistance for over two weeks, now capping the upside at 1.4225. In the same chart, the technical indicators remain within negative territory, with no certain directional strength, but maintaining the risk towards the downside
Support levels: 1.4125 1.4080 1.4030
Resistance levels: 1.4215 1.4250 1.4290
USD/JPY Current price: 116.64
View Live Chart for the USD/JPY
BOJ gave bears a warning, but trend will likely prevail. The USD/JPY pair plummeted briefly below the 116.00 level, reaching 115.96 before bouncing sharply higher following comments coming from the BOJ about watching yen's developments. Investors feared an intervention, as the Bank of Japan don't want a stronger yen, and quickly took profits out of the table. But the short term bounce is far from confirming and a bottom, and if risk aversion returns, if won't be strange to see the pair plummeting to fresh lows. Technically, the 1 hour chart shows that the technical indicators have corrected extreme oversold readings but are losing upward strength far below their mid-lines, while the price is well below its 100 and 200 SMAs, both heading lower beyond the 117.00 figure. In the 4 hours chart, the technical indicators have turned higher from near oversold territory, but also remain in negative territory, while the 100 SMA extended its decline further above the current level, in line with the dominant bearish trend.
Support levels: 116.40 115.95 115.50
Resistance levels: 117.00 117.35 117.70
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