EUR/USD Current price: 1.1004
View Live Chart for the EUR/USD
Wall Street turned closed in the red this Thursday, as investors´ hope of easy money coming from different fronts diminished, after ECB's Draghi left the economic policy unchanged, and on BOJ´s Kuroda comments against "helicopter money." Asian shares fell, while European ones also present moderate losses ahead of the US opening. Currencies are mostly clueless in this new scenario, except for the Pound, hit by poor local data.
The EUR/USD pair trades within a tight range around 1.1000, after the Markit flash composite for the region fell down to 52.9 for July, an 18-month low. German data beat expectations, with the composite PMI up to 55.3 from previous 54.4, reaching its highest for 2016. The US will release its manufacturing figures later today, expected modestly higher, and if that's the case, the dollar will likely end the week higher once again, on resurging hopes of a sooner US Federal Reserve rate hike.
Technically, the risk is towards the downside in the EUR/USD pair, as in the 1 hour chart, the price remains capped by a bearish 100 SMA, while the technical indicators have entered negative territory, maintaining strong downward slopes. The 20 SMA in the mentioned time frame is flat around 1.1020, providing an immediate short term resistance, ahead of a daily descendant trend line now around 1.1060. In the 4 hours chart, the price is hovering around a bearish 20 SMA, while the technical indicators diverge from each other within neutral territory, in line with the lack of directional strength seen during these last three weeks.
Support levels: 1.0960 1.0910 1.0840
Resistance levels: 1.1020 1.1060 1.1100
GBP/USD Current price: 1.3096
View Live Chart for the GBP/USD
The GBP/USD pair traded as high as 1.3290 early Europe, but sunk after the release of the Markit PMIs estimated for July, with the services and manufacturing sector falling into contraction. As an exception, Markit released flash readings from the UK, showing the sharpest decline since early 2009. The Services flash PMI fell down to 47.4, from previous 52.3, while the manufacturing sector contracted to 49.1. The pair fell down to 1.3084 and trades nearby ahead of the US opening, with a strong bearish tone in the short term, with an acceleration gap still unfilled after the news. The 1 hour chart shows that the technical indicators head lower despite being in oversold territory, while the 20 SMA is turning south around 1.3200, far above the current level. In the 4 hours chart, the price is below a modestly bearish 20 SMA, the Momentum indicator remains neutral, while the RSI indicator presents a bearish slope, standing now around 39, supporting some further declines as long as selling interest maintains the upside limited around 1.3130.
Support levels: 1.3065 1.3020 1.2980
Resistance levels: 1.3130 1.3165 1.3200
USD/JPY Current price: 106.16
View Live Chart for the USD/JPY
Holding mid-range, downside limited. The USD/JPY pair recovered modestly, despite the poor performance of worldwide stocks, trading a handful of cents above the 106.00 level ahead of the US opening. Short term, the pair presents a modest positive tone, given that in the 1 hour chart, technical indicators head higher around their mid-lines, although the price is being limited by its 100 SMA. In the 4 hours chart, technical indicators have turned flat around their mid-lines, maintaining a neutral stance, but the price remains well above its moving average, which indicates a limited downward potential. The main resistance comes at 106.60, with a break beyond it required to confirm a steeper recovery, although the most likely scenario is further consolidation ahead of BOJ's meeting next week.
Support levels: 105.80 105.40 105.05
Resistance levels: 106.60 107.10 107.50
AUD/USD Current price: 0.7481
View Live Chart for the AUD/USD
The AUD/USD pair trades below the 0.7500 level, having eased during the Asian session amid speculation the RBA will cut rates further in the upcoming months. Also, Australian 3 year bond futures traded at a record low yield of 1.39 %, while the 10-year bond yield fell down towards 1.88% vs. 1.98% previous. The pair, however, recovered from a daily low of 0.7460, trading with a limited short term upward scope, according to technical readings. In the 1 hour chart, the price is being capped by a bearish 20 SMA, while the technical indicators maintain their bearish slopes within negative territory. In the 4 hours chart, the price is developing below its 20 SMA and 200 EMA, both converging 0.7490, while the technical indicators aim higher, but within negative territory.
Support levels: 0.7450 0.7410 0.7370
Resistance levels: 0.7490 0.7540 0.7590
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.
Recommended Content
Editors’ Picks
AUD/USD dips below 0.6600 following RBA’s decision
The Australian Dollar registered losses of around 0.42% against the US Dollar on Tuesday, following the RBA's monetary policy decision to keep rates unchanged. However, it was perceived as a dovish decision. As Wednesday's Asian session began, the AUD/USD trades near 0.6591.
EUR/USD edges lower to near 1.0750 after hawkish remarks from a Fed official
EUR/USD extends its losses for the second successive session, trading around 1.0750 during the Asian session on Wednesday. The US Dollar gains ground due to the expectations of the Federal Reserve’s prolonging higher interest rates.
Gold wanes as US Dollar soars, unfazed by lower US yields
Gold price slipped during the North American session, dropping around 0.4% amid a strong US Dollar and falling US Treasury bond yields. A scarce economic docket in the United States would keep investors focused on Federal Reserve officials during the week after last Friday’s US employment report.
Solana FireDancer validator launches documentation website, SOL price holds 23% weekly gains
Solana network has been sensational since the fourth quarter (Q4) of 2023, making headlines with a series of successful meme coin launches that outperformed their peers.
Living vicariously through rate cut expectations
U.S. stock indexes made gains on Tuesday as concerns about an overheating U.S. economy ease, particularly with incoming economic reports showing data surprises at their most negative levels since February of last year.