Forex Profits Master: EUR/USD: bears in charge, 1.3270 key

Sunday, February 17, 2013

EUR/USD: bears in charge, 1.3270 key

EUR/USD Current price: 1.3352

The dollar starts the week slightly firmer across the board, with the EUR/USD stuck in the 1.3350 area. G20 statement passed with no pity and no glory, with a pledge not to devaluate currencies but to actual commitment. G20 also committed to a credible medium-term fiscal strategy, but stopped short of setting specific goals, in the light of fragile economic recoveries around the world. As for the EUR/USD, the pair presents a shy bearish tone according to the hourly chart, with price right below a flat 20 SMA and indicators heading slightly lower, getting into negative territory. In the 4 hours chart technical readings are more bearish, supporting a downward move for this Monday: the daily ascendant trend line coming from 1.2660 stands today in the 1.3270 area, main bearish target. Stops below the level should be large, so any attempt to break lower may see the downside extending fast up to 1.3220 price zone.

Support levels: 1.3310 1.3270 1.3220

Resistance levels: 1.3385 1.3410 1.3440

EUR/JPY Current price: 125.32

View Live Chart for the EUR/JPY (select the currency)

The EUR/JPY extends its recovery from Friday low of 122.88, having briefly broken below the daily ascendant trend line only to saw an impressive bounce. The hourly chart shows price aiming higher near 200 SMA in the hourly chart, offering resistance at current levels, while indicators head north in positive territory. The 4 hours chart however, shows indicators below their midlines, with not enough upward strength yet. Still the pair is biased higher as long as above 124.80 in the short term, with a break above 125.95 confirming further gains towards 126.60 price zone.

Support levels: 124.80 124.30 123.75

Resistance levels: 125.50 125.90 126.60

GBP/USD Current price: 1.5502

View Live Chart for the GBP/USD (select the currency)

The GBP remains among the weakest currencies of the board, with the GBP/USD barely holing around the 1.5500 level. The hourly chart shows a slightly bearish tone as indicators head south below their midlines and price stands below 20 SMA, with immediate support at 1.5460, past Friday low. 4 hours chart shows 20 SMA gaining bearish slope above current price and acting as dynamic resistance, today around 1.5535, while indicators aim higher in negative territory: price needs then to break below mentioned low to be able to extend its slide with 1.5260/80 area now at sight.

Support levels: 1.5460 1.5410 1.5370

Resistance levels: 1.5510 1.5535 1.5590

USD/JPY Current price: 93.87

View Live Chart for the USD/JPY (select the currency)

The USD/JPY gapped higher, already above Friday high as yen slide gathers momentum. Technically bullish according to the hourly chart, the pair may attempt a retest of the 94.50 area today, while a break above will expose the 96.00 level for later this week. Dips are likely to be seen as buying opportunities, with 93.50 as first support to watch for today.

Support levels: 93.50 93.10 92.60

Resistance levels: 94.15 94.50 94.90

AUD/USD: Current price: 1.0285

View Live Chart for the AUD/USD (select the currency)

Australian dollar gives ground earl y Asia, trading below the 1.0300 mark against the greenback. The AUD/USD hourly chart shows a strong bearish momentum that repeats in the 4 hours and in the daily charts, pointing for further slides ahead with 1.0220, past week low as key support to follow, as once below the pair has scope to approach parity later this week. Upward movements towards 1.0330/70 price zone seem great selling opportunities with tight stops above 1.0410 resistance zone.