EUR/USD: uncertainty keeps majors range bound

EUR/USD Current price: 1.0726

The EUR/USD pair traded as low as 1.0685 this Monday, with markets being driven by risk sentiment at the beginning of the week, amid the terrorist attacks in France last Friday. Safe havens edged higher with gold and the JPY being the most benefited, during the Asian session. The EUR/USD pair advanced up to 1.0757 during the London session, but was unable to extend beyond it, and consolidates in a quiet range ahead of the US opening. With little macroeconomic news doing the rounds, the 1 hour chart for the pair shows that there's no directional strength, as the price is well below its 100 and 200 SMAs, whilst the RSI indicator hovers around 47. In the 4 hours chart, a horizontal 20 SMA caps the upside around the mentioned daily high, whilst the technical indicators remain stuck around their mid-lines. The pair has been trading in between 1.0670 and 1.0810 for over a week already, which means only some clear break of those extremes will open doors for some directional moves during the upcoming sessions.

Support levels: 1.0715 1.0670 1.0630

Resistance levels: 1.0760 1.0810 1.0850

GBP/USD Current price: 1.5194

View Live Chart for the GPB/USD

The GBP/USD pair trades lower in range, unable to recover firmly above the 1.5200 figure, but holding nearby a few pips below it. The British Pound gapped slightly lower at the weekly opening, but the market filled it pretty fast before turning slightly lower. Short term, the 1 hour chart shows that the price is trading below a horizontal 20 SMA, and below the 38.2%retracement of its latest bearish move, while the technical indicators head nowhere below their mid-lines. In the 4 hours chart, the 20 SMA converges with the mentioned Fibonacci resistance around 1.5215, offering an immediate strong resistance, whilst the technical indicators lack directional strength in neutral territory. The pair has held above the 1.5160 region ever since recovering above it mid last week, which means a break below it is required to confirm additional slides this Monday.

Support levels: 1.5160 1.5120 1.5070

Resistance levels: 1.5215 1.5265 1.5310

USD/JPY Current price: 123.12

View Live Chart for the USD/JPY

Bullish above 123.55. The Japanese yen started the day advancing against most of its major rivals amid risk sentiment leading the way, with the USD/JPY falling down to 122.21. The currency however, changed course after the release of the latest GDP figures, showing that the economy contracted in the third quarter. Gross domestic product declined an annualized 0.8% in the three months to September, well beyond the 0.2% contraction forecasted. The negative reading fueled hopes of a QE extension in Japan, leading to a steady advance in the pair beyond the 123.00 level. Technically, the 1 hour chart shows that the price is well above its 100 and 200 SMAs, whilst the Momentum indicator continues heading higher above its 100 level, and the RSI indicator losses upward strength near overbought territory. In the 4 hours chart, the technical indicators have lost their upward momentum after crossing their mid-lines towards the upside, which at least should keep the downside limited during the upcoming hours. Should the price extend beyond last week high of 123.56, the pair has room to extend its advance up to 124.40, in route to the 125.80 year high.

Support levels: 122.80 122.30 122.00

Resistance levels: 123.55 123.90 124.40

AUD/USD Current price: 0.7092

View Live Chart for the AUD/USD

The Australian dollar is breaking lower against the greenback ahead of the US opening, somehow weighed by a plunging NZD and an easing gold. The AUD/USD pair trades below the 0.7100 level, and the 1 hour chart shows that the 20 SMA is gaining bearish strength above the current level, while the technical indicators present a neutral-to-bearish stance, turning lower in negative territory. In the 4 hours chart, the price is now below a bullish 20 SMA, whilst the technical indicators head south below their mid-lines, in line with a continued decline, particularly on a break below 0.7070, the immediate support.

Support levels: 0.7070 0.7030 0.6990

Resistance levels: 0.7150 0.7190 0.7240

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