Euro continues its recovery in early interbank trading gapping slightly higher and testing levels above 1.3800. Short term bullish according to the hourly chart, investors are willing to sell the common currency with much more speed than buy it, as the euro zone news continues to disappoint: following Greek Papandreou, this Saturday Italian PM Berlusconi also resigned, while talking about Italy leaving the Euro zone has already started, this time coming from ex PM Prodi. 4 hours chart also shows indicators heading north while price moves above a bullish 20 SMA which suggests more gains towards the 1.3860 area for this Monday, as long as above 1.3740 support zone.
Support levels: 1.3740 1.3700 1.3660
Resistance levels: 1.3810 1.3835 1.3860
After setting a floor around 1.5900 area, the Pound recovered strongly against the greenback past Friday American afternoon, finding support in US stocks comeback. Hourly chart shows price consolidating in a 50 pips range between 1.6050 and 1.6100, with indicators heading higher and 20 SMA gaining bullish slope quite below current price. Bigger time frames however, show that despite short term bullish momentum, the pair lacks clear trend as per trading in a wider 1.5860/1.6140 range. Quite far away from those extremes, only a clear break of these lasts may define a trend for GBP/USD, not expected for today.
Support levels: 1.6050 1.6010 1.5970
Resistance levels: 1.6100 1.6140 1.6185
The USD/JPY resumed its bearish trend reaching the 77.00 area past Friday and consolidating just above in this new week opening. The level, represents the 61.8% retracement of the post intervention rally which suggest a break below it may see increasing selling pressure. Hourly chart shows 20 SMA guiding price lower while indicators remain flat below their midlines; in the 4 hours one, the bearish momentum continues developing, supporting the bearish bias in the pair.
Support levels: 77.05 76.80 76.50
Resistance levels: 77.20 77.50 77.90
Australian dollar also found support in stocks, recovering good part of the ground lost past week on Friday. As all high yields and due to the market good mood, the pair holds a bullish tone in the short term, with hourly indicators heading north above their midlines, and price gapping higher at the opening. In bigger time frames the picture is quite alike, supporting more gains for this Monday, as long as above 1.0270 price zone.
Support levels: 1.0270 1.0230 1.0180
Resistance levels: 1.0360 1.0400 1.0440
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