EUR/USD: no room for advances below 1.0800

EUR/USD Current price: 1.0761

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The dollar ended the day slightly lower against most of its major rivals, with a strong decline in European and American stocks leading the way in a quiet trading journey. There were a few fundamental releases, starting early Europe with the German trade balance posting a surplus of €22.9 billion in September 2015, whilst exports and imports beating expectations and increasing by 2.6% and 3.6% respectively. Prospects of a US rate hike next December have finally taken their toll over worldwide stocks, with bonds also plunging and yields rising. 

The EUR/USD pair  seesawed between 1.0718 and 1.0789, and the short term picture suggests that the pair is ready to resume its decline, as in the 1 hour chart, the technical indicators have erased all of their oversold readings, and after entering positive territory, are now heading south below their mid-lines. In the same chart, the price hovers around a flat 20 SMA, whilst remains far below the 100 and 200 SMAs. In the 4 hours chart, the 20 SMA has extended its decline above the current price and now offers a dynamic resistance around 1.0815, whilst the technical indicators have corrected their extreme oversold readings, but remain well into the red and far from suggesting further gains ahead. 

Support levels: 1.0735 1.0700 1.0660 

Resistance levels: 1.0800 1.0845 1.0890

EUR/JPY Current price: 132.40

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The EUR/JPY pair advanced up to 133.12 as the Japanese yen weakened during the Asian session, but the pair reverted its intraday gains in the American afternoon, following plummeting stocks. Ending the day a few pips above its daily opening, the 1 hour chart shows that the pair has temporally advanced above its 100 and 200 SMAs before returning below them by the end of the day, whilst the technical indicators head south below their mid-lines, anticipating some further declines. In the 4 hours chart, the 100 SMA has widened the distance with the 200 DMA, with the shortest offering a dynamic resistance around 133.55. In the same chart, the Momentum indicator is posting a tepid bounce from its mid-line, although the RSI indicator heads south around 47, anticipating a downward continuation, particularly on a break below 131.80 the immediate support. 

Support levels: 131.80 131.30 130.75

Resistance levels: 132.60 133.10 133.55

GBP/USD Current price: 1.5113

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The GBP/USD pair has managed to recover the 1.5100 level, having advanced up to 1.5127 intraday, in a slow, but steady advance. There were no relevant fundamental  news in the UK to drive the Pound, and it won't be until Wednesday, with the release of the latest employment figures that the kingdom will offer a big market mover. In the meantime, the 1 short term picture shows that the price is above its 20 SMA, whilst the technical indicators have recovered above their mid-lines, but none present a clear upward momentum at the time being. In the 4 hours chart, however, the latest recovery seems barely corrective, given that the 20 SMA maintains a sharp bearish slope far above the current level, whilst the RSI indicator aims higher around 33, and the Momentum indicator also advances, but remains below the 100 level. The pair needs to extend its advance beyond 1.5130 to confirm additional gains for this Tuesday, up to the 1.5200 region where selling interest is expected to resume. 

Support levels: 1.5080 1.5035 1.5000 

Resistance levels: 1.5130 1.5160 1.5200

USD/JPY Current price: 123.04

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The USD/JPY pair retreated from a fresh 3-month high of 123.59 reached in the European morning, weighed by a sharp decline in US indexes. The pair however, is finding some short term buying interest around the 123.00 level that can finally be broken during the upcoming Asian session, particularly if local share markets follow their overseas counterparts. Technically, the 1 hour chart shows that the 100 SMA continues advancing far below the current level, but that the technical indicators head south below their mid-lines, supporting a bearish continuation for the upcoming hours. In the 4 hours chart, the RSI indicator is heading lower around 67, supporting a bearish corrective move, whilst the Momentum indicator heads slightly higher well above its mid-line, but unable to extend beyond previous highs. A break below 122.80 should confirm the downward move, albeit buying the dips seems now the way to play the USD/JPY.

Support levels: 122.80 122.50 122.20 

Resistance levels: 123.35 123.80 124.25

AUD/USD Current price: 0.7045

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The AUD/USD pair showed little progress this Monday, confined to a 40 pips range ever since the day started and ending it a handful of pips above its opening. Worse-than-expected Chinese trade balance figures over the weekend, was neutralized by a sharp advance in Chinese and Japanese stocks at the beginning of the day, limiting the downward potential of the Aussie. But the commodity-related currency was neither able to advance as the dollar held to its recent strength. The pair is biased lower in the short term, as in the 1 hour chart, the price is developing below its 20 SMA, whilst the Momentum indicator heads slightly lower below the 100 level and the RSI indicator hovers around 42. In the 4 hours chart, the price is well below a strongly bearish 20 SMA, whilst the technical indicators head south well into the red after a limited upward corrective movement of extreme oversold readings, in line with further declines particularly on a break below 0.7030, the immediate support. 

Support levels: 0.7030 0.6980 0.6940

Resistance levels: 0.7070 0.7110 0.7150