Risk aversion again dominated the scenes this Monday, with stocks and commodities strongly down since weekly opening. Bad news however, also came from the US, where the super committee meant to reach a deal to cut the countries deficit has failed to provide an agreement yet. Hourly chart shows price attempting to break back below 20 SMA that holds the bearish tone while indicators lack direction and remain flat below their midlines. In the 4 hours chart, the price was unable to open a candle above an also flat 20 SMA, yet no clear strength dominates the board. Expect the pair to continue trading nervously yet bearish.
Support levels: 1.3450 1.3420 1.3370
Resistance levels: 1.3520 1.3565 1.3615
GBP/USD slipped to a fresh monthly low at 1.5611 this Monday, entering Asian session still under selling pressure according to the hourly chart. Indicators head south below their midlines after extreme oversold readings where corrected, and 20 SMA holds the bearish slope above current price supporting more selling pressure in the pair. In the 4 hours chart, indicators had turned flat following recent consolidation near lows, yet long upper shadows in candle suggest the upside will remain limited for today.
Support levels: 1.5610 1.5570 1.5540
Resistance levels: 1.5685 1.5730 1.5770
Japanese yen continues holding below 77.00 against the greenback, still bearish. Intervention gains are being slowly but steadily diluted by investors, who are losing the fear to BOJ and keep pushing the pair lower. Hourly chart shows price finding support at a flat 20 SMA while indicators head back south after failing to overcome mentioned level; in 4 hours chart, the bearish trend is clearer despite lack of momentum, as per lower lows and lower highs. 76.50 is still a strong support area that should be strong enough to contain price in case of slides.
Support levels: 76.50 76.20 76.00
Resistance levels: 76.90 77.10 77.45
Aussie has been hit badly by sliding stocks, breaking below the 61.8% retracement of the latest bullish rally from 0.9386 to 1.0737, at 0.9908 against the greenback. The hourly chart shows the bearish momentum quite intact after indicators corrected extreme oversold readings, heading back south below their midlines. Daily low around 0.9807 is immediate support while a break below it should lead to a continuation rally towards the 0.9720 area, probable bottom for this Tuesday.
Support levels: 0.9800 0.9765 0.9720
Resistance levels: 0.9870 0.9900 0.9940
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