EUR/USD Current Price: 1.1320
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The EUR/USD pair plummeted below the 1.1300 level during the European morning, as a better-than-expected Chinese trade balance for March, fueled risk appetite, sending stocks sharply higher in Asian and Europe, and weighing on the EUR. According to official data, exports rose by 11.5% while imports decreased less-than-expected, by 7.6% yearly basis, while the trade balance came in at $29.86bn against previous $32.59bn. Data suggest that the economic slowdown seen late 2015 may have started to recede in the first quarter of this 2016.
The release of US data, stalled dollar's gains as Retail Sales for March fell by 0.3% against expectations of a 0.1% advance. The core reading posted a 0.2% against expectations of 0.4%. The Producer Price index was a huge disappointment, down 0.1% monthly and yearly basis. The ex food and energy figures also missed expectations.
The EUR/USD pair bounced from a daily low of 1.1294, and in the 1 hour chart, the technical indicators have turned sharply higher within oversold territory, but the price remains well below a bearish 20 SMA, currently around 1.1360. In the 4 hours chart, the technical indicators have stalled their declines near oversold territory, but remain far below their mid-lines, as the 20 SMA gains a limited bearish slope around 1.1390. Overall, the movement has been corrective, and the pair may recover further if it regains the 1.1330 region, yet a break below 1.1280 should see the pair extending its decline towards the 1.1200 region later today.
Support levels: 1.1280 1.1245 1.1200
Resistance levels: 1.1335 1.1380 1.1420
GBP/USD Current price: 1.4246
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The GBP/USD pair trades a few pips below its daily opening, maintaining a neutral stance daily basis. An early slide met buying interest at 1.4190/200, the immediate support. There were no macroeconomic releases in the UK, and US data indeed should maintain the downside limited. Nevertheless, the 1 hour chart shows that the price is unable to advance beyond a horizontal 20 SMA, whilst the technical indicators hold flat below their mid-lines, with no signs of upward strength. In the 4 hours chart, the pair bounced from a bullish 20 SMA but consolidates around the 200 EMA, whilst the technical indicators retreat from overbought levels, but lost the downward strength and hover directionless within positive territory.
Support levels: 1.4190 1.4150 1.4110
Resistance levels: 1.4285 1.4330 1.4370
USD/JPY Current price: 108.59
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Holding above 109.00. The Japanese yen weakened this Wednesday, as improved market´s sentiment forced yen bulls to take some profits out of the table. The USD/JPY rallied up to 109.38, and currently retreats on the back of poor US data, as March Retail Sales fell, while inflation at production levels grew less than expected. Still holding above the 109.00 figure, the 1 hour chart shows that the pair advanced above its 100 SMA for the first time since late March, with the 200 SMA now offering an immediate resistance at 109.60. In the same chart, the technical indicators have turned lower within overbought territory, indicating the pair may extend its decline particularly on a break below the 109.00 figure. In the 4 hours chart, the technical indicators have lost upward strength near overbought levels, but are far from suggesting a downward move at the current levels.
Support levels: 108.90 108.40 107.95
Resistance levels: 109.60 110.00 110.45
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