Market was in a relative good mood early Europe, following better than expected German’s IFO survey coming better than expected, and France’s President Sarkozy stating that France and Germany are determined to help Italy and do everything to save Euro. However, and despite US was on holidays, stocks and futures come under pressure in the American afternoon, ending the day pretty lower, and adding to the already existing Euro bearish trend. The EUR/USD closed the day unchanged, having extended its slide to a fresh low at 1.3315, trading below 20 SMA in the hourly chart that turned flat due the lack of volume seen over the last few hours; indicators are also flat below their midlines while 4 hours chart shows the bearish momentum pretty much intact; lose of 1.3300 price zone, should lead to a test of the 1.3230 price zone over the upcoming hours.
Support levels: 1.3310 1.3270 1.3230
Resistance levels: 1.3365 1.3690 1.3440
Quiet journey in the UK at least from the fundamental side, as revised quarterly GDP come as expected at 0.5%. The GBP/USD however, spent most of the day consolidating at fresh monthly lows just below current price, set at 1.5484. The hourly chart shows a general bearish trend with price below 20 SMA and indicators below their midlines, lacking however strength. In bigger time frames, bearish pressure also persists, with indicators heading back south after slightly correcting oversold readings. As long as below 1.5570, short term bearish target for tomorrow lies around 1.5400 price zone.
Support levels: 1.5485 1.5440 1.5400
Resistance levels: 1.5570 1.5610 1.5645
The USD/JPY erased most of recent gains, trading back around 77.10 Fibonacci area. Hourly chart shows price struggling around 20 SMA while indicators are mostly flat giving no clear direction clues, while 4 hours chart is also offering a rangy perspective, although back turning to the downside with 76.50 as next big support in line.
Support levels: 77.10 76.75 76.50
Resistance levels: 77.50 77.75 78.05
Australian dollar saw some relief this Thursday, recovering a small piece of the ground lost over the past 4 weeks, barely corrective in the middle of its bearish trend. Hourly chart shows the pair trading around 0.9730, also 20 SMA in the hourly chart, while indicators turned flat over the past few hours. In the 4 hours chart, the pair still trades below a bearish 20 SMA while momentum retreats from the 100 level, giving a bearish perspective for the upcoming hours. Immediate resistance and level to break to erase the bearish short term tone is the 0.9780, mentioned 4 hours 20 SMA; only above this last the pair may continue correcting higher towards 0.98
Support levels: 0.9700 0.9660 0.9620
Resistance levels: 0.9780 0.9830 0.9880
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