EUR/USD Current Price: 1.1114
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The week started in slow motion across the forex board, with the American dollar benefiting partially from a strong risk appetite that underpins worldwide stocks. The absence of macroeconomic releases during the upcoming US session, should see investors turning their eyes to stocks for clues. Early Europe, news surprised towards the upside, as seasonally adjusted Industrial Production in the EU In January 2016, rose by 2.1%, compared to a -1.0% in December. The positive data has prevented the EUR from falling further, in spite of equities' rallies.
Technically the EUR/USD pair is trading a handful of pips above the 1.1100 figure, with the short term technical picture pointing for some further declines, given that in the 1 hour chart, the pair is below a bearish 20 SMA, while the technical indicators hover directionless within bearish territory. In the 4 hours chart, however, the price remains well above its larger moving averages, whilst the 20 SMA heads strongly higher and provides an immediate support around 1.1090. In this last time frame, the technical indicators are slowly turning higher after correcting overbought readings, in line with the dominant bullish trend.
Support levels: 1.1090 1.1050 1.1010
Resistance levels: 1.1160 1.1200 11240
GBP/USD Current price: 1.4364
View Live Chart for the GBP/USD
The GBP/USD pair has retraced from the high set last week at 1.4435, mostly consolidating its latest gains and waiting for a trigger. With the dollar broadly lower, the downside seems quite limited and investors will likely take dips as opportunities to buy. The short term technical picture reflects the lack of bearish strength, given that the technical indicators have turned higher below their mid-lines, although in the same chart, the price remains below a horizontal 20 SMA. In the 4 hours chart, the technical picture favors the upside, with the price above a bullish 20 SMA and the technical indicators consolidating near overbought territory. Nevertheless, the pair needs to extend beyond 1.4410 to be able to rally towards the 1.4500 level.
Support levels: 1.4335 1.4295 1.4260
Resistance levels: 1.4410 1.4445 1.4490
USD/JPY Current price: 113.62
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Neutral below 114.00. The USD/JPY pair continues trading within a quite limited range this Monday, unable to retain gains beyond the 114.00 figure. The pair advanced during the Asian session, as the yen weakened alongside with the Nikkei's rally. But the European opening favored dollar's decline. The short term technical picture for the pair shows that the price remains above the 23.6% retracement of its latest decline around 113.50, while the 200 SMA converges with the mentioned Fibonacci level, now the immediate support. The technical indicators present limited bearish slopes within neutral territory, lacking enough strength to confirm a new leg lower for today. In the 4 hours chart, the technical picture is also neutral, with the price hovering between moving averages and the technical indicators stuck around their mid-lines. To confirm a stronger advance, the price needs to extend beyond the 114.60 something quite unlikely for today and ahead of the upcoming FED's meeting next Wednesday.
Support levels: 113.50 113.10 112.70
Resistance levels: 114.00 114.60 115.05
AUD/USD Current price: 0.7541
View Live Chart for the AUD/USD
The AUD/USD pair has rallied up to 0.7583 at the beginning of the day, but turned south and fell down to 0.7530 alongside with commodities' prices retreating from their recent highs. The Aussie however, remains among the strongest currencies across the board, and seems unlikely the pair will change direction any time soon. Technically, the 1 hour chart shows that the technical indicators have recovered with bearish territory, but that the price remains below a horizontal 20 SMA, overall with no signs of strengthening further. In the 4 hours chart, the bullish tone prevails given that the price is above a bullish 20 SMA whilst the technical indicators head nowhere, but remain above their mid-lines.
Support levels: 0.7500 .7465 0.7430
Resistance levels: 0.7580 0.7630 0.7665
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