EUR/USD: challenging 1.1190 resistance

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1180

View Live Chart for the EUR/USD

Following a dull first half of the day, the forex market got in motion ahead of Wall Street's opening, following the release of a batch of US data. With several European countries on holiday, majors were trading traded within limited ranges, although the dollar was marginally lower against all of its major rivals, but the Pound, suffering from diminishing hopes of FED's action after Friday's dismal data. US New York Empire manufacturing index came in at -4.21 for August, worse than the 2.50 expected or the previous 0.55, adding pressure over the American currency.

The EUR/USD pair spiked up to 1.1185 with the news, struggling around the major resistance region, the post-Brexit highs in between 1.1180 and 1.1190 that contained rallies for over a month. Low summer volumes are being exacerbated by the holiday, so not much is expected for today. Technically, the 1 hour chart shows that the price is holding above the 1.1160 region, the 23.6% retracement of the latest weekly rally and the 20 SMA in the mentioned time frame, whilst the technical indicators head modestly higher within positive territory, with limited upward momentum. In the 4 hours chart the 20 SMA has turned flat, also around the 1.1160 region, reinforcing the support area, whilst the technical indicators aim modestly higher above their mid-lines, maintaining the downside limited.

Support levels: 1.1160 1.1125 1.1090

Resistance levels: 1.1190 1.1235 1.1280

GBP/USD Current price: 1.2878

View Live Chart for the GBP/USD

The GBP/USD pair fell down to 1.2882 early Europe, extending its decline through the level ahead of the US opening, despite US data missed expectations. Rumors over the weekend suggesting that the UK will delay the Brexit process due to political uncertainty, have fueled the decline in the pair from a fundamental point of view, whilst the break of the 1.2900 level added from the technical side. Technically, the 1 hour chart shows that the price remained capped by a bearish 20 SMA, whilst the technical indicators resumed their declines, now within bearish territory, supporting a downward extension for today. In the 4 hours chart, the 20 SMA accelerated its decline above the current level, whilst the RSI is currently around 29, in line with the shorter term outlook.

Support levels: 1.2870 1.2830 1.2790

Resistance levels: 1.2900 1.2940 1.2985

USD/JPY Current price: 101.15

View Live Chart for the USD/JPY

Upside limited below 101.40. The USD/JPY pair traded sub 101.00 ahead of US data releases, bouncing afterwards but neutral daily basis and confined to a tight range. Japan released its preliminary growth figures for the second quarter of the year, showing that growth slowed at an annualized rate of 0.2%, against expectations of a 0.7% advance and a previously revised 2.0%. June's industrial production rose by 2.3% against previous 1.9% while compared to a year before, it came in at -1.5% against previous -1.9%. Technically, the 1 hour chart shows that the price is well below its 100 and 200 SMAs, whilst the technical indicators turned modestly higher within bearish territory, not enough to confirm further gains. In the 4 hours chart, indicators are neutral around their mid-lines, whilst the 100 SMA has extended its decline far above the current level. The risk remains towards the downside, with a break below 110.65 required to trigger stops and see the price extending down to 100.00. Above 101.40 on the other hand, the bearish risk will diminish short term, with the pair then poised to correct higher up to 102.00.

Support levels: 101.00 100.65 100.20

Resistance levels: 101.40 101.95 102.35

AUD/USD Current price: 0.7665

View Live Chart for the AUD/USD

The AUD/USD pair recovered from a daily low of 0.7637, supported by oil's strength as the commodity continues trading around $44.50 a barrel, following the impressive recovery seen late last week. The pair, however, is unable to recover above the 0.7700 level, retreating now and looking short term bearish, as the price is barely holding above a bearish 20 SMA, and the technical indicators heading lower in the 1 hour chart. In the 4 hours chart, the bearish momentum is clearer, with the 20 SMA turning south above the current level, and indicators heading lower within negative territory.

Support levels: 0.7635 07600 0.7570

Resistance levels: 0.7700 0.7740 0.7790

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

AUD/USD flirts with 0.7000, lowest since early August amid bullish USD

AUD/USD hits a fresh low since early August during the Asian session on Friday and looks vulnerable near 0.7000 after breaking below the 200-day SMA overnight. Against the backdrop of the hawkish Fed, a two-day rally in oil prices revives inflation fears and continues to push US bond yields to multi-year highs. Adding to this, geopolitical risks lift the US Dollar to a two-month high, overshadowing RBA rate hike bets and weighing on the pair.

USD/JPY pulls back from three-week high after failing near 159.00

USD/JPY edges lower during the Asian session on Friday, stalling its recent strong move to a three-week high of 159.00 as Japanese Yen bears turn cautious amid intervention fears. Meanwhile, the US Dollar retains a strong bullish undertone as the Fed's hawkish outlook and oil-driven inflation fears continue to push US bond yields to multi-year peaks. Furthermore, the BoJ's dovish rate hike last week might cap JPY and support spot prices.

Gold extends the range play below $4,300 as Fed hike bets counter modest USD pullback

Gold struggles to gain any traction and remains confined in a narrow range near the weekly low through the early European session on Friday amid a bearish fundamental backdrop. The US Dollar pulls back slightly following a strong rally to a nearly two-month high and offers some support to the commodity. However, the US Federal Reserve's hawkish outlook, elevated US bond yields, and persistent geopolitical uncertainties favor USD bulls.

Ripple, Cardano, Solana: ETF inflows and whale demand signal further rally

Ripple (XRP), Cardano (ADA), and Solana (SOL) continue to experience a steady recovery with double-digit gains so far this month. Ripple and Solana experience firm institutional demand, while the percentage of ADA supply in profit rises, underpinned by interest from large-wallet investors, commonly referred to as whales.

The Dollar is winning, but markets may be losing

The dollar is strengthening, Treasury yields are approaching levels not seen in almost two decades, and oil prices are again adding to inflation concerns. For currency traders, these developments appear to offer a relatively straightforward conclusion: higher US interest rates should support the dollar. But the broader market picture is considerably more complicated.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.