EUR/USD Current Price: 1.1221
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The EUR/USD pair extends its advance, trading above the 1.1200 level ahead of the US opening. The market continues selling the greenback without caring much of what else may be happening around, as fears of a US economic slowdown accelerated after yesterday FED Dudley's comments. The US has just released some minor employment reports, with the weekly unemployment claims below previous, but above expected, at 2.255M. Unit labor cost improved during the last quarter of 2015, up by 4.5% against expectations of a 3.9% advance. With a light calendar ahead, the EUR/USD 1 hour chart shows that the 20 SMA is currently around 1.1120, converging with the static support, and a probable buying level in the case of retracements. In the same chart, the technical indicators maintain their bullish slopes, in spite being at overbought levels, with no signs of a downward corrective movement ahead. In the 4 hours chart, the technical indicators head sharply higher in extreme overbought territory, while the moving averages are too far below the current level to be relevant. The rally is poised to continue higher, but considering the upcoming release of the US Nonfarm Payroll report to be release this Friday, majors may enter in a consolidative range.
Support levels: 1.1200 1.1160 1.1120
ReSistance levels: 1.1240 1.1285 1.1320
GBP/USD Current price: 1.4625
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The GBP/USD pair posted a limited decline following a dovish BOE, as for the first time since July, all of the nine MPC members voted for keeping rates on hold. Additionally, growth forecast was slashed to 2.2% from previous 2.5%, while the Central Bank has no clear picture on when inflation will reach its 2% target. However, there was no surprise that the BOE joined all of the major Central Banks in the extreme easing bias, since ever since the year started. The pair fell down to 1.4528, meeting support around the 38.2% retracement of the latest daily decline, but quickly recovered. The 1 hour chart shows that the price is above a bullish 20 SMA, while the technical indicators lack directional strength within bullish territory. In the 4 hours chart, the 20 SMA continued advancing far below the current level, while the 200 EMA reinforces the mentioned Fibonacci support by standing at 1.5325. In the same chart, the technical indicators head higher near overbought territory, supporting some further advances towards the recent highs, around 1.4660.
Support levels: 1.4570 1.4530 1.4490
Resistance levels: 1.4660 1.4690 1.4730
USD/JPY Current price: 117.34
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The USD/JPY pair resumes its decline this Thursday, as dollar sell-off continues. The pair corrected slightly higher after bottoming at 117.04 last Wednesday, up to 117.70, where a Fibonacci resistance capped the advance. Technically, the downside remains favored, with the 1 hour chart showing that the 100 and 200 SMAs are turning south well above the current level, while the technical indicators head strongly lower within bearish territory. In the 4 hours chart, the technical indicators also maintain their bearish slopes in oversold territory, supporting a retest of the 115.96 January low should the 117.00 level give up. Advances towards the mentioned 117.70 region, will likely be seen as selling opportunities, particularly if stocks in the US fall again.
Support levels: 117.05 116.60 116.20
Resistance levels: 117.70 118.10 118.40
AUD/USD Current price: 0.7229
View Live Chart for the AUD/USD
The AUD/USD soared up to 0.7237 during the Asian session, helped by a strong rally in the Kiwi after better-than-expected employment data in New Zealand. A downward corrective movement briefly sent the pair below 0.7200, but the pair recovered fast as the market keeps selling the greenback. Short term, the 1 hour chart shows that the price continues advanced beyond a strongly bullish 20 SMA, while the technical indicators maintain their bullish strength. In the 4 hours chart, the technical indicators head north in overbought territory, while the moving averages gain bullish slopes below the current level, all of which supports some further advances.
Support levels: 0.7200 0.7160 0.7125
Resistance levels: 0.7245 0.7290 0.7330
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