EUR/USD: About to challenge a major support at 1.1080

EUR/USD Current Price: 1.1145

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Market resumed dollar's buying this Tuesday, sending the EUR/USD pair down to 1.1139 daily basis, level last seen on March 16th. The greenback began to advance during the Asian session, particularly against commodity-related currencies, which pared losses in Europe, as the strong momentum in stocks helped them recover some ground. Overall higher, except against the Pound, the dollar is now poised to extend its rally, at least as FED's officers maintain the hawkish tone in regards of a June rate hike. 

In Germany, the release of the ZEW survey showed that economic sentiment dropped  to 6.4 in May, from 11.2 in April, but that assessment of the current situation rebounded after two drops, and came in at 53.1 in May, from 47.7 in April. The EU economic sentiment also fell, down to 16.8 in May from  a previous 21.5. Further supporting the greenback were US New home sales, up to their highest level in eight years in March, as sales surged by 16.6% to a 619,000 annualized pace.

The EUR/USD pair enters the Asian session with a strong bearish tone in its 4 hours chart, with the price far below a bearish 20 SMA, and the technical indicators still heading south, despite being in oversold levels. A daily ascendant trend line coming from December low of 1.0505 converges in the daily chart with the 200 DMA around 1.1080 a probable bearish target for this Wednesday, and the level to break to confirm a retest of the psychological 1.1000 figure. If somehow the common currency recovers ground, selling strong selling interest is expected to surge in the 1.1245/1.1280 region.  

Support levels: 1.1120 1.1080 1.1040

Resistance levels: 1.1160 1.1200 1.1245 

EUR/JPY Current price: 122.63

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The EUR/JPY pair traded within quite a limited range this Tuesday, as both currencies weakened evenly against the greenback. The pair, however, managed to post a lower low for the week at 122.34, but pared losses as European and American equities jumped higher. Now trading barely above its daily opening, the risk remains towards the downside, as in the daily chart, the price continues developing well below a bearish 100 SMA, although the technical indicators have turned horizontal within neutral territory. In the shorter term, and according to the 1 hour chart, the technical picture is also neutral-to-bearish, given that the 100 and 200 SMAs are accelerating south far above the current level, but the technical indicators head nowhere around their mid-lines. In the 4 hours chart, the Momentum indicator heads south within bearish territory, whist the RSI consolidates around 37, indicating the absence of buying interest around current levels. 

Support levels: 122.25  121.80 12140

Resistance levels: 122.70 123.10 123.60

GBP/USD Current price: 1.4602    

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The British Pound soared against most of its major rivals, with the GBP/USD pair reaching a daily high of 1.4638, having spent  most of the last two sessions above the 1.4600 level. The UK currency benefited from BOE's Governor, Mark Carney comments, who said that the Central Bank will not fight post-Brexit moves in GPB no matter the outcome of the referendum, adding that they will take all necessary steps to ensure markets function in an orderly way in the case the "leave" side wins. The Sterling will probably keep trading on Brexit woes, with volatility probably increasing as the date of the referendum looms. In the meantime, the pair has reached a major resistance level, a daily descendant trend line coming from May high of 1.4769, and consolidates a few pips below it, today around 1.4635. The 4 hours chart presents a bullish tone, and supports a break through the trend line, as the Momentum indicator heads sharply higher well above its 100 level, whilst the RSI has lost upward strength, but keeps heading higher around 64. Further gains beyond 1.4663, last week high, should see the pair extending up to 1.4770 this Wednesday.

Support levels: 1.4570 1.4530 1.4480 

Resistance levels: 1.4630 1.4660 1.4700

USD/JPY Current price: 110.04

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BOJ's officers will probably cheer the recent surge in worldwide stocks, as the move among equities pushed the USD/JPY pair back above the 100.00 figure this Tuesday. The pair has been steadily rising ever since the day started, accelerating higher during the US session, tracking Wall Street's gains. The macroeconomic calendar will remain empty in Japan until early Thursday, when the country will release its latest inflation figures. Should the data disappoint, the market will rush to price in further BOJ easing, triggering more gains in the USD/JPY pair. In the meantime, the short term picture is clearly bullish with the price now back above its 100 and 200 SMAs, and the technical indicators maintaining their bullish slopes, within overbought territory. In the 4 hours chart, the upward momentum is limited, as the pair needs to break decisively above the 110.60 region to be able to extend its rally up to 112.00 during the upcoming days. 

Support levels: 109.80 109.50 109.20 

Resistance levels: 110.20 110.60 111.00

AUD/USD Current price: 0.7161

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The AUD/USD pair fell to a fresh 2-month low of 0.7144, with the Aussie weighed by plummeting gold prices, and comments from RBA Governor Glenn Stevens, who said that inflation is “really a bit too low” and hinted at further easing in the upcoming months. The pair bounced modestly as stocks surged, but remains well below 0.7210, the 61.8% retracement of this year's rally, with the dominant bearish trend firm in place. Short term, the 1 hour chart shows that a strongly bearish 20 SMA keeps capping the upside, now around 0.7180, whilst the technical indicators have corrected oversold readings before losing upward strength within negative territory. In the 4 hours chart, the 20 SMA has extended its decline to converge with the mentioned Fibonacci retracement, reinforcing the strength of the static resistance level, whilst the technical indicators have resumed their slides after correcting oversold readings, in line with further declines, particularly on a break below the mentioned daily low.  

Support levels: 0.7145 0.7100 0.7060

Resistance levels: 0.7210 0.7250 0.7290