EUR/USD: increasing bearish potential

EUR/USD Current price: 1.3790

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The EUR/USD trades lower in the day, weighted in the European morning by ECB’s Weidmann words on negative rates and QE still possible for the Central Bank, a clear attempt to down talk Euro strength.  In the US, current American session will bring a few market mover releases, supporting a lively session for today. In the meantime, the EUR/USD hourly chart shows an increasing bearish potential, with indicators heading south in negative territory, 20 SMA turning also lower above current price, and this last approaching again the immediate Fibonacci support around 1.3780. In the 4 hours chart 200 EMA converges with the mentioned Fibonacci support, reinforcing its strength, however, clearance of 1.3750 weekly low is required to confirm further falls for the day.

Support levels: 1.3780 1.3750 1.3710

Resistance levels: 1.3825 1.3870 1.3910 

GBP/USD Current price: 1.6513

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Steady inflation and positive housing data in the UK, helped GBP/USD recover above 1.6500 today, albeit the pair remains confined to a quite tight range. The hourly chart shows indicators heading south slightly above their midlines while price stands above its 20 SMA. In the 4 hours chart technical readings present a shy bearish tone with indicators still capped below their midlines and price hovering around a bearish 20 SMA. Either a break above 1.6535, yesterday’s high and Fibonacci resistance, or below 1.6470 is required to set a more directional move, with the downside favored at the time being.

Support levels: 1.6470 1.6425 1.6390

Resistance levels: 1.6535 1.6565 1.6600 

USD/JPY Current price: 102.38

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Still range bound the USD/JPY trades in a tight 60 pips range since past Thursday, unable to set a clear direction. The hourly chart presents a slightly positive tone, as price holds above a bullish 100 SMA while indicators head higher in positive territory, yet unless a clear acceleration beyond 102.50/60 price zone, the upside remains limited. In the 4 hours chart technical readings maintain a pretty neutral stance, with buyers still surging on approaches to 102.10 immediate short term support.

Support levels: 102.10 101.85 101.30 

Resistance levels: 102.60 102.90 103.40

AUD/USD Current price: 0.9148

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Australian dollar maintains its strength, having reached a fresh year high of 0.9156 over Asian hours against the greenback. The pair’s hourly chart shows price above a bullish 20 SMA, and indicators losing upward potential above their midlines, as price consolidates near mentioned high. In the 4 hours chart technical readings also favor the upside, with 0.9110 as immediate short term support.

Support levels: 0.9110 0.9085 0.9050 

Resistance levels: 0.9170 0.9210 0.9245

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EUR/USD: increasing bearish potential