EUR/USD Current price: 1.3135
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The EUR/USD surged late US afternoon as DJIA surged to a fresh 5-year high, on up-beating housing data. Bernanke’s second day testimony reinforces the idea that QE will remain in place, bringing risk appetite back. The EUR/USD however, saw a quite limited recovery advancing barely 10 pips above the 1.3125 level that capped the upside since Italian elections outcome. Anyway the short term outlook turned bullish, as the hourly chart shows 20 SMA gaining momentum below current price, and offering dynamic support around 1.3090. In the 4 hours chart, price is breaking above 20 SMA that holds a strong bearish slope, which suggests upward movements will remain limited. Upward correction will most likely continue, moreover if local share markets follow their overseas counterparts, with 1.3300 area then at sight. Price should find resistance around there in a daily descendant trend line coming from 1.3710.
Support levels: 1.3125 1.3090 1.3040
Resistance levels: 1.3150 1.3185 1.3620
EUR/JPY Current price: 121.04
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Japanese yen crosses where the most benefited with stocks rally, with the EUR/JPY surging above 121.00. The pair however, found short term resistance around 121.30, while the hourly chart shows indicators losing upward momentum, and 100 SMA offering dynamic resistance around 121.80: this last is the level to break to see the pair regaining more ground. In the 4 hours chart, movement seems corrective, as indicators barely moved away from oversold readings; however, as long as above the 120.40 price one, the upside is favored towards the 122.50/60 price one.
Support levels: 120.90 120.40 119.90
Resistance levels: 121.30 121.80 122.60
GBP/USD Current price: 1.5156
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The GBP/USD continues to struggle around the 1.5160 level, unable to gather pace. UK data disappointed again, and Pound remains an unattractive buy, which suggests it would need little to resume the downside. The hourly chart shows 20 SMA still hori ontal, while indicators lose momentum in positive territory. In the 4 hours chart a slightly bullish tone seems to be developing, with momentum heading north after bouncing on its 100 level and price above 20 SMA. A break above 1.5220, neckline of the short term double floor is required to confirm the upward continuation.
Support levels: 1.5115 1.5070 1.5030
Resistance levels: 1.5220 1.5265 1.5300
USD/JPY Current price: 92.25
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The USD/JPY surged strongly up, trading back above the 92.00 level. The hourly chart shows price quite firm, although indicators are losing upward momentum, still in positive territory. 100 SMA is now around 92.70, acting as resistance level: if price managed to overcome this last, further slides will turn more difficult. In the 4 hours chart indicators head higher from oversold readings, still far from giving clear continuation signals. Downside risk has moved far away, as only below 90.80 the pair may resume its bearish trend.
Support levels: 92.00 91.60 91.20
Resistance levels: 92.70 93.00 93.40
AUD/USD: Current price: 1.0225
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Latest price advance seems not to be enough for AUD/USD: the pair is giving back its recent gains, and the hourly chart shows little upward potential at the time being, as indicators turned back lower and approach their midlines. In the 4 hours chart price remains below a strongly bearish 20 SMA, currently around 1.0250: as long as below this level, the downside remains favored
Support levels: 1.0180 1.0150 1.0110
Resistance levels: 1.0250 1.0300 1.0330
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EUR/USD: US stocks saved the day
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