EUR/USD: further slides below 1.0565

EUR/USD Current price: 1.0599

Financial markets are all about Brexit this Monday, with risk aversion keeping equities under pressure and safe-haven gold and JPY on demand, amid renewed fears of a hard-Brexit. The greenback also benefited, in spite of Donald Trump's new battle against China, with the American currency up against all of its European rivals, and the minor-dollar's bloc. US markets will remain closed this Monday amid the Martin Luther King's holiday, which means there won't be macroeconomic releases. Action from that front, will resume during the upcoming Asian session, with data coming from Australia and Japan.

The EUR/USD pair fell in the European session down to 1.0578, as the dollar's benefited from Pound's sell-off, with the pair stabilizing afterwards around 1.0600. Technically, the pair presents a modest bearish potential in the short term, as in the 1 hour chart, the price is now below its 20 and 100 SMAs, with the largest attracting intraday selling interest, whilst indicators hold within negative territory, although with no directional strength. A key support comes at 1.0565, the 23.6% retracement of the latest monthly slide, and it will take a break below it to confirm another leg lower later today. In the 4 hours chart, the price broke below a still bullish 20 SMA, whilst the Momentum indicator heads sharply lower within bearish territory, and the RSI hovers around 48, also indicating some further slides ahead.

Support levels: 1.0565 1.0510 1.0470

Resistance levels: 1.0650 1.0685 1.0710

GBP/USD Current price: 1.2058

View Live Chart for the GBP/USD

The Sterling plummeted at the weekly opening, and traded as low as 1.1986 against the greenback, undermined by renewed fears about a "hard-Brexit," following some week-end headlines suggesting that PM May will have no other choice. News suggested that the UK should leave to EU Single Market to secure free-trade deals with other countries across the world, and regain full control of the kingdom's borders. PM May will offer a speech this Tuesday, in which she will outline the government's Brexit strategy. The GBP/USD pair managed to recover at the beginning of the European session, setting a high of 1.2083, but overall, the bearish stance persists according to intraday technical readings, as in the 1 hour chart, the price is unable to advance beyond a bearish 20 SMA, the RSI indicator is resuming its decline around 39, and the Momentum indicator lost upward strength within neutral territory. In the 4 hours chart, the Momentum indicator maintains its downward slope as the RSI holds around 35, supporting the shorter term outlook, and favoring a new leg lower on a break below 1.2035, the immediate support.

Support levels: 1.2035 1.2000 1.1970

Resistance levels: 1.2085 1.2120 1.2165

USD/JPY Current price: 114.11

View Live Chart for the USD/JPY

Bearish pressure mounts on risk aversion. The Japanese yen rallied against the greenback in a risk-averse environment, leading the USD/JPY pair to post a fresh 6-week low of 113.61 during the London morning, although buying interest sub-114.00 quickly sent the pair back above the mentioned level. The negative tone in European equities, however, helps the yen to hold on to gains daily basis, with the pair at risk of falling further. Short term, the 1 hour chart shows that the 100 and 200 SMAs maintain their sharp bearish slopes well above the current level, whilst technical indicators hold within negative territory, with no certain directional strength. Additionally, the pair is now trading below the 23.6% retracement of the latest weekly bullish run at 114.50, the immediate resistance and the level to surpass to see the bearish pressure easing. In the 4 hours chart, technical readings also support further slides, as the 100 SMA accelerated its decline far above the current level, aiming to cross towards the downside the 200 SMA, while indicators remain flat within negative territory, amid limited volumes today.

Support levels: 114.00 113.65 113.20

Resistance levels: 114.50 114.85 115.20

AUD/USD Current price: 0.7478

View Live Chart for the AUD/USD

The AUD/USD pair fell down to 0.7457 on the back of dollar's demand, but bounced back from the critical static support region, still trading in the red daily basis. Aussie's decline was limited by a solid uptick in inflation, as measured by the Melbourne Institute. According to the report, inflation grew by 0.5% in December, up from 0.1% in the previous month, while the YoY reading came in at 1.8% from previous 1.5%. From a technical point of view, however, the upside is limited in the short term, as the price remains capped by a modestly bearish 20 SMA, whilst the Momentum indicator is currently retreating from its mid-line, as the RSI hovers around 49. In the 4 hours chart, the price is aiming to recover above a bullish 20 SMA, the RSI is holding around 60 and the Momentum is heading lower within neutral territory, suggesting buying around the AUD remains strong, and that the market will take dips as buying opportunities.

Support levels: 0.7450 0.7410 0.7370

Resistance levels: 0.7495 0.7525 0.7560

Share: Analysis feed

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.