Euro reached a 7-week low against greenback at 1.3319, entering Asian session barely above it, having been sold since early European morning: German bond sale on Wednesday failed miserably, while a special report by Fitch Ratings suggested France AAA credit status is being threatened. The EUR/USD hourly chart, shows a limited bounce higher from mentioned low, capped by 1.3365 area, while indicators remain in oversold levels. In the 4 hours chart, the bearish momentum increases as price moves away from both 20 SMA and 20 EMA while the distance between both widens, another sign of more slides. Below 1.3310, expect the rally to extend towards 1.3230 over the upcoming sessions.
Support levels: 1.3310 1.3270 1.3230
Resistance levels: 1.3365 1.3690 1.3440
The GBP/USD was under selling pressure also, following market’s hunger for greenbacks. The pair broke clearly below the 61.8% Fibonacci retracement of the 1.5270/1.6165 rally at 1.5610, selling level in case of bullish corrections. The hourly chart shows indicators aiming higher while price consolidates near daily low and remains far below a bearish 20 SMA which suggest the upside is still quite limited. In bigger time frames, the bearish trend continues building up, supporting a test of the 1.52 level once 1.5500 gives up.
Support levels: 1.5490 1.5440 1.5400
Resistance levels: 1.5570 1.5610 1.5645
The USD/JPY jumped higher on dollar buying interest, reaching as high as 77.57 before starting to fade. Still above 77.10 immediate Fibonacci support, the hourly chart shows indicators heading north from overbought levels supporting a test of the mentioned level. Still above 20 SMA, risk environment will hardly favor gains beyond 78.00 as rises will be seen as selling opportunities in the pair. In bigger time frames the bullish tone is still quite limited amid recent range, helping keep the upside limited.
Support levels: 77.10 76.75 76.50
Resistance levels: 77.50 77.75 78.05
Aussie slide continued at a firm pace, with the AUD/USD reaching 0.9660 support zone. Over the past 4 weeks the pair already lost near 1100 pips, yet the bearish trend is only starting: indicators in the daily chart are heading south below their midlines, far from oversold readings, supporting more falls till year end. For the short term, the hourly chart shows RSI flat above 30, momentum flat below 100 and 20 SMA holding the bearish slope of past sessions, suggesting more slides. In the 4 hours chart, the pair is also biased to the downside, with strong resistance around 0.9770 now.
Support levels: 0.9660 0.9620 0.9580
Resistance levels: 0.9725 0.9770 0.9810
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