The EUR/USD reached a fresh low early Europe, followed by a strong temporal bounce higher to 1.3433, daily high, on comments of a USD 300bln FX investment vehicle created by China Central Bank. The pair lost momentum after retreating back to the 1.3320 area, only to bounce back higher as Herman Van Rompuy announced that the UK is the only EU country which declined joining the Euro zone 17 in preparing an intergovernmental treaty on tightening the fiscal union. Lack of a certain trend continues in the pair thus remains biased to the downside. Hourly chart shows indicators heading lower yet price above a flat 20 SMA, while the descendant trend line that has been halting attempts to advance, currently lies around 1.3365. Uncertainty is the name of the game.
Support levels: 1.3330 1.3310 1.3280
Resistance levels: 1.3365 1.3400 13435
The GBP/USD has also suffered wild spikes both side of the board, as markets remain very nervous. The hourly chart however, supports the bearish side of the board, as per indicators breaking below their midlines and price below 20 SMA. In the 4 hours chart, today’s high was contained by 200 EMA currently around 1.5730 which supports the negative tone of the pair, while indicators remain flat around their midlines
Support levels: 1.5600 1.5555 1.5520
Resistance levels: 1.5680 1.5710 1.5740
After yesterday’s movements, the USD/JPY returned to its classic 30 pips range a day, having been capped to the upside by 77.80 static resistance zone. Slightly bearish tone persists in the hourly chart, although indicators show no real strength. In bigger time frames, the picture is quite alike, with 76.50/78.05 as the maximum range for the rest of the day.
Support levels: 77.50 77.35 77.10
Resistance levels: 77.80 78.05 78.40
The USD/CHF retreated again from the 0.9300 area, unable so far to extend post peg gains yet also limited to the downside as investors don’t find attractive the Swissy right now. Hourly chart shows indicators aiming higher below their midlines, while price is being contained by 20 SMA. The 4 hours chart shows bounces to the upside are still strong, showing more of a buying interest on deeps than anything else.
Support levels: 0.9210 0.9170 0.9120
Resistance levels: 0.9280 0.9300 0.9330
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