EUR/USD Current Price: 1.0912
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The dollar trades broadly lower across the board, exception made by the Aussie, weakened by RBA Governor, Glenn Stevens during the past Asian session. Surprisingly, the market is ignoring oil prices, which extended their decline and approached $30.00 a barrel mid European session. In the data front, Germany released its latest unemployment rate that fell to its lowest since German unification, down to 6.2% in January. In the EU, the producer price index in December fell by 0.8%, compared to a month before, while the year-on-year reading, came out minus 0.3%. The US calendar will remain light, with one FED member talking and an optimism index. Markets will likely move with sentiment, with stocks probably leading the way.
Technically, the EUR/USD pair 1 hour chart shows that the price is retreating from a daily high of 1.0922 but holds above the 1.0900 level and above its moving averages. In the same chart, the technical indicators have turned south above their mid-lines, indicating little upward potential at the time being. In the 4 hours chart, the price is above its moving averages, but the technical indicators have turned south within neutral territory, as the price stands above horizontal moving averages. The bullish potential grows, but the lack of momentum and the fact that selling interest has contained the upside around 1.0960, suggest that the upside will remain limited for one more day.
Support levels: 1.0880 1.0845 1.0810
Resistance levels: 1.0925 1.0960 1.1000
GBP/USD Current price: 1.4396
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The GBP/USD pair advanced further this Tuesday, having halted around Monday high of 1.4444 on an early rally. Hovering around the 1.4400 figure, the pair retreated from its highs following the release of the UK Construction PMI, down to 55.0 in January from 57.8 in December. The technical picture is short term bearish, with the price accelerating south below its 20 SMA and the technical indicators gaining bearish strength below their mid-lines. In the 4 hours chart, however, the pair recovered from a bullish 20 SMA around 1.4325, while the Momentum indicator heads higher well above its 100 level and the RSI turned lower, but stands around 57. Rallies are still seen limited, but somehow, selling interest has diminished lately, and now buyers are taking their chances on slides. The battle has just began, yet fresh highs beyond 1.4460 should confirm an upward continuation for the upcoming sessions.
Support levels: 1.4360 1.4325 1.4270
Resistance levels: 1.4420 1.4460 1.4500
USD/JPY Current price: 120.70
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The USD/JPY pair fell down to 120.35 at the beginning of the day, as investors seek for safety at the beginning of the day, following growing risk aversion coming from China. The slide in commodities forced the PBoC to intervene once again, by injecting 100bn Yuan. The USD/JPY recovered back above 120.60, but is having a hard time to hold into gains. Technically the 1 hour chart shows that the technical indicators are within bearish territory, as the price hovers around a major Fibonacci level. In the same chart, the 100 SMA has extended its advance and now hovers in the 120.15 region. In the 4 hours chart, the Momentum indicator heads south below its mid-line, while the RSI continues retreating from overbought level, increasing the risk of a new leg lower for this Tuesday, particularly if stocks come under pressure.
Support levels: 120.60 120.15 119.75
Resistance levels: 120.95 121.35 121.70
AUD/USD Current price: 0.7050
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The AUD/USD pair fell down to 0.7038, weighed by a dovish tone coming from the RBA. The Central Bank kept rates on hold, as largely expected, and Governor Stevens let the door opened for further monetary easing if required, albeit he sounded a bit more optimistic about the local economy. Anyway, the pair was unable to recover ground and the 1 hour chart shows that the price remains near its low, with a clear bearish tone coming from technical readings. In the 4 hours chart, the price is currently unable to recover above its 20 EMA, albeit the technical indicators have turned modestly higher, below their mid-lines. Nevertheless, a break below 0.7040 should lead to a continued decline sub 0.7000.
Support levels: 0.7040 0.7000 0.6970
Resistance levels: 0.7080 0.7105 0.7150
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