EUR/USD Current Price: 1.1374
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The EUR/USD pair trades slightly lower this Tuesday, having been unable to rally beyond the 1.1400 level ever since the week started. Nevertheless, the downside remains limited, in spite of the ongoing risk aversion sentiment, as the pair stands pretty much unchanged from its weekly opening. Data coming from Europe showed that March final Services PMI missed expectations, reflecting a sluggish growth in the sector during the first quarter of this 2016. Ahead of the release of US PMI non-manufacturing figures, the 1 hour chart for the pair shows that the price is below its 20 and 100 SMAs, whilst the technical indicators have bounced partially from oversold levels, but remain below their mid-lines, indicating no actual bullish strength. In the 4 hours chart, the pair is also developing below a now flat 20 SMA, whilst the Momentum indicator heads south below the 100 level, and the RSI hovers around 53, lacking clear directional strength. The pair will likely remain range bound ahead of upcoming ECB and FED's events on Wednesday and Thursday, with the downward potential remaining limited as long as the price remains above the 1.1280 immediate support.
Support levels: 1.1330 1.1280 1.1245
Resistance levels: 1.1410 1.1460 1.1500
GBP/USD Current price: 1.4179
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The GBP/USD pair extended its decline this Tuesday, and pressures 1.4170, Friday's low and the immediate support. The Sterling came under pressure after the release of the UK Services PMI for March, which resulted at 53.7, below the 54.0 expected, although above the previous 52.7. Also, weighing on Pound are lower oil prices, as the commodity returned to $ 35.00 a barrel on news an output freeze seems less likely. Technically, the 1 hour chart presents a strong bearish tone, as the technical indicators keep heading south, despite being near oversold readings, whilst the 20 SMA has turned south above the current level. In the 4 hours chart, the 20 SMA is crossing below the 200 EMA n the 1.4270 region, while the RSI indicator maintains its bearish slope well below its mid-line, supporting some additional declines for the upcoming hours.
Support levels: 1.4170 1.4140 1.4100
Resistance levels: 1.4220 1.4270 1.4315
USD/JPY Current price: 110.59
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Downward potential increases. The Japanese yen appreciated further during the past Asian session as local share markets plummeted, fueling demand for safe-haven assets. The USD/JPY fell down to 110.25, a level not seen since October 2014, and the following bounce was unable to reach the 111.00 figure, despite the BOJ offered its usual jawboning: chief cabinet secretary Suga said that authorities are watching FX movements with a "sense of urgency." The pair has corrected extreme oversold readings, but maintains a strong bearish tone, both short and long term, indicating a strong possibility of a break below 110.00, which may fuel the decline, despite the BOJ. The 1 hour chart shows that the price is well below its 100 and 200 SMAs, while the technical indicators have turned lower within bearish territory after correcting extreme oversold readings. In the 4 hours chart, the technical indicators have recovered partially within oversold territory, but with the price around its lows and far below its moving averages, the risk remains towards the downside.
Support levels: 110.25 109.90 109.50
Resistance levels: 110.70 111.20 111.60
AUD/USD Current price: 0.7538
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The AUD/USD pair fell to its lowest for the week on a worried RBA, as the Australian Central Bank expressed concerns over the strength of the Aussie. The pair seems to be finally poised to correct lower, particularly on a break below the 0.7500 figure, although the self strength of the Australian economy and the broad dollar's weakness suggests that the decline won't be as extended as the RBA pretends. Technically and for the short term, the 1 hour chart shows that the price remains near its daily low and well below a strongly bearish 20 SMA, whilst the technical indicators have turned flat within oversold territory. In the 4 hours chart, the price is well below a bearish 20 SMA, while the technical indicators have also lost downward potential, but remains near oversold territory with no signs of changing bias, maintaining the risk towards the downside.
Support levels: 0.7500 0.7460 0.7425
Resistance levels: 0.7540 0.7575 0.7620
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