EUR/USD Current Price: 1.1257
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The EUR/USD pair trades uneventfully this Monday, between 1.1215, the low set at the beginning of the day and 1.1262, the highest of the European session. Germany released the IFO survey's results for April, showing that business confidence decreased alongside with the assessment of the current situation, suggesting the economic slowdown seen during the first quarter of the year continues. Still pending of release, the US will offer its latest New Home sales figures during the upcoming session, expected to have grew modestly during March.
In the meantime, the pair remains near its daily high, but lacking directional strength, although limited towards the downside, as in the 1 hour chart, the price is above a flat 20 SMA, whilst the technical indicators are turning lower within positive territory. In the 4 hours chart, the technical bias favors the downside, as the 20 SMA has extended its decline above the current level, and maintains a strong downward slope, whilst the technical indicators are turning south below their mid-lines, after correcting from oversold levels.
Support levels: 1.1220 1.1160 1.1120
Resistance levels: 1.1280 1.1315 1.1340
GBP/USD Current price: 1.4502
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The Pound outperforms its major rivals this Monday, having advanced against the greenback up to 1.4518, surpassing by a couple of pips the high established on March 18th. Supporting the UK currency is a bounce in local share markets which opened down, and investors' decision to stay away from the EUR and the JPY, ahead of the upcoming FED and BOJ's meetings. In the macroeconomic front, the CBI Industrial Trends survey, showed that manufacturing activity fell by less than expected in March, due to a dip in export orders, whilst domestic orders were broadly flat. Nevertheless, the GBP/USD pair holds above the 1.4500 level, and in the 1 hour chart, the price is well above a now bullish 20 SMA, whilst the technical indicators are losing upward strength near overbought readings, supporting some short term consolidation/retracement. In the 4 hours chart, however, the technical indicators present a strong upward momentum, whilst the 20 SMA accelerates higher far below the current level, indicating that the bullish potential is still strong.
Support levels: 1.4465 1.4420 1.4370
Resistance levels: 1.4520 1.4555 1.4600
USD/JPY Current price: 110.85
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Further slides below 110.65. The USD/JPY pair retreats below the 111.00 level ahead of the US opening, following news coming from Japan that suggest more easing will come in June, and not in this week meeting as initially suspected. The generally weak tone of the greenback is also supporting the intraday decline that could be exacerbated by a negative result of the upcoming US housing data. From a technical point of view, the 1 hour chart shows that the price is still far above its 100 SMA, currently around 110.00, but that the technical indicators head sharply lower within bearish territory, supporting some additional declines on a break below 110.65, a major static support level. In the 4 hours chart, the price is back below a bearish 200 SMA, whilst the technical indicators retreat from extreme overbought territory, supporting the shorter term outlook.
Support levels: 110.65 110.30 109.80
Resistance levels: 111.00 111.40 11.90
AUD/USD Current price: 0.7720
View Live Chart for the AUD/USD
The AUD/USD pair is gaining some bullish track ahead of the US opening, recovering from a daily low of 0.7690 posted at the beginning of the week. With Australia down on holidays, the pair saw little action at the beginning of the day, now waiting for US traders to define where to go today. Technically, the 1 hour chart presents a neutral stance, with the price a few pips above a horizontal 20 SMA and the indicators heading nowhere around their mid-lines. In the 4 hours chart, however, the risk is towards the downside, as the price is well below a bearish 20 SMA, currently around 0.7760, whilst the technical indicators stand well below their mid-lines, showing no certain directional strength.
Support levels: 0.7690 0.7660 0.7620
Resistance levels: 0.7760 0.7790 0.7835
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