EUR/USD: flat, but bearish risk prevails

EUR/USD Current Price: 1.0874

The common currency is seeing little action this Tuesday, holding below the 1.0900 level against the greenback and overall heavy. Data coming from Europe this morning was mixed, but is clearly pointing for a slowdown in growth, as Markit Manufacturing PMIs for February in the region, resulted well below previous and dangerously close to the 50.0 mark, the one that divides growth from contraction. Germany seems to be the only country in where the crisis is limited, as unemployment decreased by 10K during the same period. After Wall Street's opening, the US will release its own manufacturing data, and construction spending figures, which are largely expected to be also tepid.

The EUR/USD pair maintains its negative bias, despite the lack of Momentum, as in the 1 hour chart, the pair seems unable to extend beyond its 20 SMA, whilst in the same chart, the technical indicators head slightly lower below their mid-lines while in the 4 hours chart, the price extended further below a bearish 20 SMA, whilst the technical indicators are barely bouncing from oversold levels. As commented on previous updates, the line in the sand stands at the 1.0800/10 region where buying interest has been defending the downside pretty much since December. A break below the area should trigger stops and therefore signal a sharper decline for the upcoming sessions.

Support levels: 1.0850 1.0810 1.0770

Resistance levels: 1.0920 1.0960 1.1000

GBP/USD Current price: 1.3974

View Live Chart for the GBP/USD

The GBP/USD pair has extended its recovery this Tuesday, advancing up to 1.4017 after the London opening, but retreated after a poor Markit Manufacturing PMI in the UK, which resulted at 50.8 in February. Technically, the 1 hour chart shows that the price is holding above a mild bullish 20 SMA, but also that the technical indicators have turned south within positive territory, increasing the risk of a downward move. In the 4 hours chart, the price has managed to hold above a flat 20 SMA, currently around 1.3920, whilst the technical indicators hover around their mid-lines, giving no clear clues on what's next for the pair. Renewed buying interest beyond the daily high could see the pair correcting the extreme oversold conditions still present in bigger time frames, albeit only above 1.4250 the pair can actually turn bullish, something not yet seen.

Support levels: 1.3960 1.3920 1.3875

Resistance levels: 1.4020 1.4060 1.4100

USD/JPY Current price: 112.98

View Live Chart for the USD/JPY

Bears still in control. The USD/JPY pair failed to sustain gains above 113.00 and remains around its daily opening, after a tepid intraday advance up to 113.33, as Asian share markets closed mostly in the green. The pair however, is far from having shuck off the negative tone, as its remain below the 23.6% retracement of the latest daily decline, around 113.50. The 1 hour chart shows that the price is retreating towards its 100 and 200 SMAs, both converging around 112.70, now the immediate support. In the same chart, the technical indicators have turned lower, but remain above their mid-lines, not enough to support a bearish breakout. In the 4 hours chart, the early advance met selling interest around a strongly bearish 100 SMA, whilst the technical indicators have turned flat within neutral territory, maintaining the risk towards the downside.

Support levels: 112.70 112.30 111.90

Resistance levels: 113.50 114.10 114.60

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