While late in the US afternoon Flitch downgraded several European banks, the common currency has been under selling pressure since early Wednesday. The market acknowledged that the solution for current crisis is not around the corner, sending the EUR/USD to a daily low of 1.2945. The hourly chart shows indicators away from oversold levels yet price contained to the upside; the 20 SMA lies above current price, while in the 4 hours chart the bearish momentum remains pretty much intact with no signs of corrections despite holding in extreme oversold areas.
Support levels: 1.2950 1.2920 1.2870
Resistance levels: 1.3010 1.3035 1.3070
The GBP/USD bounced to close the day barely unchanged after posting a fresh low at 1.5407, holding the general bearish tone seen over the last few days. Trading in a limited range in the hourly chart since mid American afternoon, the hourly chart shows indicators mostly flat and lacking direction, while in the 4 hours chart latest bounce may support a short term bullish correction, if price manages to regain the 1.5520 price zone. As long as below, bias remains to the downside, with price looking for fresh lows.
Support levels: 1.5450 1.5415 1.5370
Resistance levels: 1.5520 1.5550 1.5590
The USD/JPY traded most of this Wednesday just above 78.00 yet holding to a very limited intraday range. The hourly chart shows indicators still flat although price holds above 20 SMA that slowly gains some ground, giving the pair a limited bullish bias for the next hours, needing to break the 78.30 price zone to trigger a more interesting bullish movement. In the daily chart, the 20 SMA has overcome the 100 one, first time since early May, while the distance in between them increases daily basis, pointing for some more gains in the term. In that case, 79.10, 200 DMA will be next level to watch.
Support levels: 78.00 77.80 77.50
Resistance levels: 78.30 78.65 78.90
Aussie sunk with stocks and gold, that quotes around $ 1575, level not seen since mid September. The commodity currency not only lost parity against the greenback, yet also ends the day below the 61.8% retracement of the latest bullish rally from 0.9660 to 1.0379 at the 0.9940 area, immediate resistance in case of corrections. Technical indicators are showing in oversold levels both in 1 and 4 hours chart, although there are no signs of current trend giving up right now. Daily low at 0.9880 is immediate support while main target for current bearish movement comes at the 0.9700/20 area, where the pair left an opening gap 3 weeks ago.
Support levels: 0.9880 0.9840 0.9790
Resistance levels: 0.9940 0.9990 1.0025
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