Market uncertainty increases hour after hour, with rumors and speculation about further aid for the euro zone; ahead of ECB economic policy meeting and with an EU summit also going on, talking point for the announce of a range of measures tomorrow to stimulate bank lending, including loosening collateral criteria so that institutions have more access to cheap ECB cash. Early market talks also pointed for an IMF aid of $120B, later $ 600B denied by the IMF, yet enough to make traders stay away from the common currency. US stocks bounce strongly up mid American afternoon, helping EUR/USD erase early losses and bounce to current levels. Hourly chart however, holds a slightly bearish tone as per indicators heading lower below their midlines, while 4 hours ones also head south. For the upcoming hours, the pair may remain trading in a limited range, with breaks of the 1.3330/1.3450 extremes needed to confirm a more directional movement.
Support levels: 1.3400 1.3360 1.3320
Resistance levels: 1.3450 1.3490 1.3530
Pound attracted buyers on stocks gains, and following an improvement in GDP, reaching 1.5724 daily high and entering Asian session quite near the area, pointing for more gains. In the hourly chart, the pair holds above the broken descendant trend line, aiming to break higher after completing a pullback, as indicators head north and 20 SMA gains bullish slope. In the 4 hours chart, the bullish momentum is quite limited, with 200 EMA acting as dynamic resistance around 1.5740, suggesting the upside is still limited for the pair.
Support levels: 1.5695 1.5660 1.5620
Resistance levels: 1.5740 1.5770 1.5810
The USD/JPY held to its limited 25 pips a day range, with the bearish tone increasing as per closing near the lows set at 77.60. In the hourly chart, indicators remain below their midlines while price develops below moving averages, adding to the bearish tone. In the 4 hours chart, the bearish momentum is also increasing which suggest a continued slide in the pair for the upcoming sessions towards the 76.50 area, BOJ line in the sand.
Support levels: 77.50 77.25 76.90
Resistance levels: 77.80 78.05 78.25
Aussie also trades in a limited range ever since the coordinated dollar swap cut, lacking direction as seen in the hourly chart, with indicators flat around their midlines. A limited bullish tone is present as per price holding above 20 SMA, with AUD/USD also finding support in the RBNZ decision of keep rates unchanged. In bigger time frames, the picture is quite the same with the upside favored as long as above the 1.0230 price zone.
Support levels: 1.0270 1.0230 1.0190
Resistance levels: 1.0300 1.0330 1.0365
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