EUR/USD Current price: 1.0947

View Live Chart for the EUR/USD

The EUR/USD pair jumped to its highest for the week, up to 1.1038, but reversed gains but quickly fell down to its lowest since the Brexit, printing 1.0934 ahead of Wall Street's opening. It was all about the ECB. The Central Bank left its economic policy unchanged, and within the press conference, Mario Draghi said that there was no discussion in extending QE, triggering the spike higher. Yet within the press conference, it was clear that they didn't discuss tapering either, or in fact anything. Policy makers will wait until fresh data in December before making a decision.

The EUR/USD pair looks quite vulnerable intraday, as in the 1 hour chart, the spike was capped by a bearish 200 SMA, and that the price is now below all of its moving averages, whilst the technical indicators head sharply lower within negative territory. Furthermore, the pair seems unable to advance beyond 1.0950, July's low. In the 4 hours chart, the 20 SMA maintains its bearish slope above the current level, while the technical indicators also support a downward extension, heading south within negative territory. The immediate support is 1.0910, the post-Brexit low, with a break below it opening doors for a steeper decline towards the 1.0800/40 region.

Support levels: 1.0910 1.0870 1.0840

Resistance levels:  1.0950 1.1000 1.1035

GBP/USD Current price: 1.2231

View Live Chart for the GBP/USD

The GBP/USD pair fell down to 1.2209, hit early London after the release of disappointing UK retail sales figures. Retail Sales remained flat monthly basis in September, printing 0.0%, while the year-on-year figre resulted at 4.1%. Despite being a solid number, it was below market's expectations of 4.8% or previous 6.6%. The spike of EUR demand sent the EUR/GBP beyond the 0.9000 level, weighing further on the Pound, and whilst EUR's strength receded, the USD/GBP was unable to recover ground. Short term, the 1 hour chart shows that the price is now well below a bearish 20 SMA, now around 1.2270, while technical indicators have partially lost downward momentum, but hold well below their mid-lines. In the 4 hours chart, the price broke below its 20 SMA for the first time this week, while technical indicators continued declining from overbought levels, and are currently entering bearish territory, implying increasing selling interest.

Support levels: 1.2210 1.2170 1.2125

Resistance levels: 1.2260 1.2300 1.2340

USD/JPY Current price: 103.69

View Live Chart for the USD/JPY

Neutral-to-bullish, 104.20 is key. The USD/JPY pair trades modestly higher, although still below the 104.00 mark, as mixed US  employment data released alongside with ECB's press conference was not enough to trigger buying interest. US weekly unemployment claims came in at 260K from a previously revised 247K and against the 250K expected. The Philadelphia FED manufacturing survey however, beat expectations at 9.7, but still below previous 12.8. The downside is limited by the strong bounce seen in equities after the ECB's press conference, leaving a neutral stance in the pair for the short term. In the 1 hour chart, the price is below its 100 and 200 SMAs, with the shortest at 103.85, while technical indicators turned lower within positive territory, but showing no directional strength. In the 4 hours chart, the price holds well above a bullish 100 SMA, now around 103.05, although technical indicators have retreated from their mid-lines, in line with the shorter term outlook. A recovery above 104.20 is what it takes to see the pair advancing further, towards the weekly high in the 104.60 region.

Support levels: 103.40  103.00 102.60

Resistance levels: 103.85 104.20 104.60 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD has rocked and rolled in response to US consumer data. The Federal Reserve's critical meeting is in the spotlight. Mid-September's daily chart is painting a mixed picture. The FX Poll is pointing to short-term falls and a bullish trend afterward.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


Gold bears in driver's seat as focus shifts to FOMC

Gold started the week in a relatively calm manner and continued to fluctuate in the previous week’s horizontal channel on Monday. Gold's technical outlook turned bearish following Thursday's sharp decline. Next target on the downside for XAU/USD is located at $1,730.

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

Central Bank fest

In terms of central bank meetings, the week ahead is one of the busiest.  No fewer than 13 central banks hold policy meetings, divided between six major and seven emerging markets.  While the significance of US monetary policy for the world makes the FOMC meeting a highlight.

Read more