EUR/USD: Battling around 1.1500

EUR/USD Current Price: 1.1502

The EUR/USD pair extended its slide early Wednesday, down to 1.1469, pressured by soft Services PMIs in the region. But the pair recovered the 1.1500 level, and finally extend beyond it after the release of a worse-than-expected ADP survey in the US, showing that the private sector added only 156,000 new jobs in April, against 195,000 expected. March´s 200K was revised lower to 194K. Labor costs' previous numbers also suffered a sharp downward revision, whilst the preliminary reading for the first quarter of this year came in at 4.1%, much stronger than expected.

The EUR/USD pair stalled its recovery at 1.1529 and now struggles around the 1.1500 level, with quite a limited upward potential in the 1 hour chart, as the price is barely above its 20 SMA, whilst the technical indicators have quickly turned lower after recovering above their mid-lines, now presenting a neutral stance. In the 4 hours chart, the price is unable to clearly advance above a bullish 20 SMA, but the technical indicators have bounced modestly from their mid-lines, after completing a correction from extreme overbought territory. If the pair breaks below 1.1460, the pair may extend its decline further lower, down to 1.1380, although a recovery beyond 1.1530 should see it resuming its bullish trend.

Support levels: 1.1500 1.1460 1.1420

Resistance levels: 1.1530 1.1565 1.1615

GBP/USD Current price: 1.4527

View Live Chart for the GBP/USD

The British Pound plummeted to 1.4460 against the greenback following another disappointing macroeconomic figure in the UK, as the construction PMI fell to 52.00 in April, the weakest in almost three years as new business volumes stalled, according to the Markit report. The pair however, managed to bounce back, and spiked up to 1.4542 on poor US data, but in the 1 hour chart, further gains are not yet clear, given that the price retreated back below a bearish 20 SMA, whilst the technical indicators have lost bullish strength below their mid-lines. In the 4 hours chart, the 20 SMA presents a strong bearish slope far above the current level, while the technical indicators bounced modestly higher within bearish territory, far from supporting additional advances. The 50% retracement of the latest bullish run stands at 1.4450, the level to break to confirm a steeper decline during the upcoming hours.

Support levels: 1.4490 1.4450 1.4410

Resistance levels: 1.4585 1.4630 1.4680

USD/JPY Current price: 106.45

View Live Chart for the USD/JPY

Correction complete, downward potential intact. The USD/JPY pair advanced up to 107.35 early Wednesday, but resumed its decline in the European morning, accelerating its slide after the release of the US ADP private employment survey, showing the world's largest economy added less jobs than expected during April. The pair was unable to advance beyond its 100 SMA in the hourly chart, suggesting the latest upward move has been merely corrective, and given that the technical indicators head south within negative territory, the risk remains towards the downside. Technical readings in the 4 hours chart have also turned lower after advancing up to their mid-lines, in line with the shorter term outlook. A break below the 106.00 level, however, is required to confirm further slides, down to the 105.00/20 region.

Support levels: 106.00 105.55 105.20

Resistance levels: 106.60 107.00 107.40

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