The optimism seen at the weekly opening quickly dilute as Monday went by; the huge UniCredit losses that posted a massive 10.6B lose against the 7.5B profit expected by market was the trigger of risk aversion and stocks slide. The common currency, fell as low as 1.3590 before recovering some ground on intraday oversold conditions, yet holds a clear bearish tone ahead of Nikkei opening. The hourly chart shows indicators still below their midlines, while price contained below 1.3645 area immediate resistance. In the 4 hours chart, indicators head strongly south with momentum approaching to the 100 level and price struggling around a bearish 20 SMA, supporting the bearish bias for the upcoming sessions.
Support levels: 1.3600 1.3550 1.3520
Resistance levels: 1.3645 1.3690 1.3720
Pound has suffered from market sentiment also, reaching the 1.5900 congestion zone where it trades right now, unable to recover. Hourly chart shows 20 SMA heading strongly south above current price, and CCI retreating from the 50 level. Momentum points for a bullish corrective movement yet price seems to not have enough strength. In the 4 hours chart, price remains limited by a flat 200 EMA just above current price, while indicators head south below their midlines, putting more selling pressure in the GBP/USD.
Support levels: 1.5890 1.5850 1.5810
Resistance levels: 1.5945 1.5980 1.6125
The USD/JPY has recovered most of the ground lost this Monday, entering Asian session with a limited bullish tone, as price holds above 20 SMA and CCI heads north, although momentum turned flat around the 100 level. Bigger time frames hold the bearish tone seen after past October 31st intervention, suggesting more range trading for today as long as below 77.20 immediate resistance zone.
Support levels: 76.80 76.50 76.25
Resistance levels: 77.20 77.50 77.90
Australian dollar has sold off steadily with stocks, with hourly indicators reaching oversold readings mid American afternoon. Bullish corrective movement has been quite limited, and according to the same time frame, pair seems ready to resume the bearish movement: indicators head south below their midlines, while price loses ground below a bearish 20 SMA. In the 4 hours chart, the bearish strength has also eased, yet not reversed; 20 SMA holds flat around 1.0180 immediate support: lose of this last should signal further slides for the AUD/USD, with parity again at sight.
Support levels: 1.0180 1.0130 1.0075
Resistance levels: 1.0220 1.0270 1.0310
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