EUR/USD: Dollar up as risk events loom

EUR/USD Current price: 1.3762

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Majors still trade in tight ranges ahead of key events, but the dollar advanced against most of its rivals amid some encouraging data in the US and increased risk of deflation in Europe, with local PPI readings failing to meet expectations. The EUR/USD traded lower, testing the base of its latest range around 1.3750 and holding nearby ahead of Asian opening. The hourly chart shows a mild bearish tone, with price below key Fibonacci level of 1.3780 and indicators heading lower below their midlines, while the 4 hours chart maintains a neutral stance.  However price action will hardly had something to do with technical readings over the upcoming 48 hours, and with some luck trend definitions may start to see the light this Thursday.

Support levels:  1.3750 1.3710 1.3670

Resistance levels: 1.3780 1.3815 1.3840 

EUR/JPY Current price: 142.81

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Yen gained some ground against its European rivals this Wednesday, probably more on profit taking after these last days’ rallies than self strength. The EUR/JPY hourly chart shows price retraced from a fresh high of 143.47 but holds around past Asian session opening, with indicators turning flat below their midlines and moving averages heading higher well below current price. As the chart also shows, the movement seems merely corrective, with price holding above the 23.6% retracement of its latest bullish run, and some consolidation ahead of ECB’s meeting should be expected in the pair, with  next key support around 142.10, 38.2% retracement of the same rally.

Support levels: 142.60 142.10 141.30 

Resistance levels: 143.40 143.90 144.60

GBP/USD Current price: 1.6623

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The GBP/USD trades intraday unchanged, after failing to recover ground early Wednesday. The pair has however managed to hold well above the 1.6600 maintaining the static stance seen over the past few days, and with the hourly chart showing a mild bearish tone. In the 4 hours chart the technical outlook is also slightly bearish yet overall neutral, with room for short term falls down to 1.6550 without being much significant. The upside remains well protected by 1.6720 and only a clear advance above this last should anticipate a new leg higher in the pair. 

Support levels: 1.6600 1.6550 1.6510

Resistance levels: 1.6650 1.6690 1.6720

USD/JPY Current price: 103.81

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The USD/JPY trades at its highest level in almost 3 months as S&P reaches a new all time high of 1890. After a downward corrective movement held above 103.60, risk has turned to the upside in the pair, albeit the hourly chart shows indicators heading lower around their midlines diverging from price action. But the overall stance is bullish for the pair, with a break above the 104.00 figure now required to confirm more advances for today.

Support levels: 103.60 103.30 103.10 

Resistance levels: 104.00 104.45 104.80

AUD/USD Current price: 0.9245

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Aussie may see some action over the upcoming hours, with the release of retail sales and trade balance figures in Australia, along with a speech from governor Glenn Stevens later on the day. In the meantime, the short term technical stance is neutral, with the pair barely changed intraday, sill holding above 0.9220 area neckline of a short term double roof and immediate support. To the upside, a recovery above 0.9260 may see the pair extending again near 0.9300, while gains beyond this last should deny the mentioned figure and see upward momentum pick up.

Support levels: 0.9220 0.9170 0.9135

Resistance levels: 0.9260 0.9300 0.9345 

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EUR/USD: Dollar up as risk events loom