EUR/USD: anticipating ECB

EUR/USD Current price: 1.3745

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That market rushes to price in upcoming policy moves, is no news. But sometimes policy makers explode this in their own benefit; the results may be partial, but here are we are, with the EUR/USD down to a fresh 3 week low, and yields of peripheral troubled country such as Spain, Italy and Portugal down to multi year lows. The ECB members’ jawboning over more facilities and negative rates weights among buyers, albeit if words are not backed with actions the currency will likely regain the upside. 

But for now, the short term picture turned bearish, as the hourly chart shows price contained below a bearish 20 SMA and indicators flat near oversold readings. In the 4 hours chart technical readings present a clear bearish tone, with immediate support now around 1.3710/20, strong static support as per being the 50% retracement of the latest bullish run. Once below, the bearish momentum may extend down to 1.3660 price zone, where the 61.8% of the same rally converges with a daily ascendant trend line coming from 1.2755.

Support levels:  1.3710 1.3660 1.3620

Resistance levels: 1.3780 1.3825 1.3875

EUR/JPY Current price: 140.45

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The EUR/JPY trades below the base of its recent range, having been as low as 140.21 this Thursday. The hourly chart shows momentum heading lower below its midline, and price accelerating below its moving averages, while the 4 hours chart also present a quite interesting bearish tone coming from technical readings. The overall stance is bearish, considering also some yen appreciation over the upcoming days due to Japan fiscal year end, eyeing now a possible test of 139.90 for the upcoming hours. 

Support levels: 140.40 139.90 139.50

Resistance levels: 140.80 141.20 141.60

GBP/USD Current price: 1.6614

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The GBP/USD corrected lower in the US session, having been as high as 1.6646. The pair’s pullback found support in the 1.6000 figure, albeit recovery lacks momentum so far. The hourly chart shows 20 SMA heading higher around mentioned level, and indicators flat in positive territory, while the 4 hours chart shows indicators turning lower near oversold readings, all of which supports a bearish corrective movement: if price is able however to hold around 1.6590/1.6600 the downside will continue to be limited, yet a break below this area should lead to a deeper move down to 1.6550 price zone.

Support levels: 1.6590 1.6550 1.6510

Resistance levels: 1.6640 1.6690 1.6720

USD/JPY Current price: 102.16

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Back and forth in range, the USD/JPY remains indifferent to market woes, albeit posted a lower low for the week in the 101.71 level. Nevertheless, the pair seems unable to find a direction, with the hourly chart showing price trapped in between 100 and 200 SMAs and indicators in neutral territory. Overall, the downside is favored, albeit a price acceleration below 101.60/80 area is required to confirm the move.

Support levels: 102.10 101.85 101.30 

Resistance levels: 102.60 102.90 103.40

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EUR/USD: anticipating ECB