EUR/USD: quietly waiting for the next catalyst

EUR/USD Current price: 1.0777

The EUR/USD pair remains contained by selling interest around 1.0820, but within its latest range, having quickly reverted a slide to 1.0767. Germany released its GFK Consumer confidence survey, showing that sentiment deteriorated in the country, as it came in at 9.8 from previous and expected 10.0. The ECB's targeted longer-term refinancing operation that took place this morning showed that banks took 233.5 billion euros for four-year loans, far above expected. Ahead of Wall Street's opening, Fed's Yellen is giving the opening remarks at the Federal Reserve System Community Development Research Conference, while in the US, weekly unemployment claims rose to their highest in seven weeks, up to 258K from previous 243K.

The pair presents a modest bearish tone in the short term, as in the 1 hour chart, the price is below a bearish 20 SMA, whilst technical indicators have remained within negative territory, now retreating from their mid-lines. In the 4 hours chart, the price is extending below a still bullish 20 SMA, whilst technical indicators have turned south, currently pressuring their mid-lines, and in line with the shorter term perspective. The pair however, needs to accelerate below 1.0760 to extend its intraday decline, with scope to test the 1.0690/1.0710 region.

Support levels: 1.0770 1.0735 1.0700

Resistance levels: 1.0820 1.0860 1.0900

GBP/USD Current price: 1.2496

View Live Chart for the GBP/USD

The GBP/USD pair advanced to a fresh 1-month high of 1.2527 following the release of much better-than-expected Retail Sales data in the UK. In February, retail sales increased by 3.7% compared with February 2016 and increased by 1.4% compared with January. The pair however, was unable to hold on to gains above 1.2500, and retreated to consolidate below the level. From a technical point of view, the risk remains towards the upside, as in the 1 hour chart, the price remains above its 20 SMA, whilst technical indicators have bounced from their mid-lines albeit with limited upward momentum as they remain below previous highs. In the 4 hours chart, the bullish tone remains intact as the price holds above a sharply bullish 20 SMA, whilst technical indicators maintain modest bullish slopes near overbought readings. Nevertheless, the pair needs to advance beyond 1.2540, a major Fibonacci resistance, to be able to extend its rally today.

Support levels: 1.2460 1.2425 1.2380

Resistance levels: 1.2540 1.2580 1.2610

USD/JPY Current price: 110.87

View Live Chart for the USD/JPY

Bearish extension around the corner. The USD/JPY pair corrected higher early Asia, but met selling interest around 111.60, a former strong support, resuming its decline and now trading not far from the year low set this Wednesday at 110.72. Worse-than-expected US data, as weekly unemployment claims surprised to the upside, printing 258K against 240K expected for the week ended March 17th, fueled the pair's decline. Asian shares closed modestly higher, while in Europe, most equities trade in the green, although the pair keeps falling, indicating that traders have made up their minds and decided that is better to go long in the JPY, maintaining the risk towards the downside and exposing the 110.00 level. Short term, the 1 hour chart shows that the price is far below its moving averages, with the 100 SMA now approaching a major Fibonacci resistance at 112.00. Technical indicators in the mentioned time frame head strongly lower near oversold territory supporting some further slides. In the 4 hours chart, technical indicators accelerated their slides within oversold territory, reaffirming the shorter term outlook.

Support levels: 110.70 110.40 109.90

Resistance levels: 111.10 111.60 112.00

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.