EUR/USD: unmotivated, but still in the green

EUR/USD Current price: 1.1303

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High yielders soared at the beginning of the week, as the "Bremain" intention vote took the lead according to the latest polls, released over the weekend. Thin liquidity and a lackluster macroeconomic calendar, however, saw majors retreating as the day went by, although the dollar is broadly lower across the board. Europe released some local data, with the German PPI improving modestly in May, up by 0.4% compared the previous month, and down by 2.7% on a year-on-year comparison, from previous -3.1%. 

The common currency rallied up to 1.1382 against the greenback at the beginning of the day, but overall remained subdued, retreating towards the 1.1300 level by the end of the day, still above Friday's close of 1.1278. Markets are all about the upcoming Brexit referendum, and will remain so until the poll that will take place next Thursday. In the meantime, the 4 hours chart for the EUR/USD pair, shows that it was unable to settle above the 50% retracement of the May's decline around 1.1360, where selling interest has steadily rejected attempts of advancing. Nevertheless and according to the same chart, the bias is generally bullish, as the price is well above its moving averages, whilst the Momentum indicator keeps heading north above its 100 line and the RSI indicator turned lower, but stands around 54. The immediate support comes around 1.1295, the 38.2% retracement of the mentioned decline, with a break below it favoring a deeper correction down to 1.1245. 

Support levels: 1.1295 1.1245 1.1210 

Resistance levels: 1.1330 1.1365 1.1400 

EUR/JPY Current price: 117.62

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After a modest decline at the beginning of the day, the Japanese yen resumed its advance mid US afternoon, as Wall Street pared gains, although holding on to strong gains.  The EUR/JPY jumped up to 119.13 on EUR's demand, but finally filled its weekly opening gap, and points to continue falling in the short term, as in the 1 hour chart, the price is back below a bearish 100 SMA, whilst the technical indicators head south within negative territory. The fact that the JPY is advancing, despite the ongoing risk-off environment, suggest that long positions are building up in the yen, pointing for a continued advance in the currency, in spite of market's sentiment, post-UK´s referendum. In the 4 hours chart, the Momentum indicator lags, whilst the RSI heads sharply lower around 42 as the price remains well below its moving average, in line with additional declines, particularly on an extension below 117.05, the immediate support. 

Support levels: 117.05 116.65 116.20

Resistance levels: 118.10 119.60 119.00

GBP/USD Current price: 1.4679

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The GBP/USD pair hit a fresh June high of 1.4706, and remains nearby at the end of the day, with the Pound still subject of wild intraday moves. Trading over 300 pips above Friday's close,  the British currency surged against all of its major rivals, but remains subject to large spikes out of the bloom, as the pair plummeted 100 pips and recovered them in a matter of minutes during the US afternoon. The financial world is all about the upcoming Brexit referendum, and speculation over the effects the results may have, whether if it's positive or not, although increasing speculation the "remain" side can now win, should see the ongoing recovery extending. Technically, the pair is biased higher, as in the 4 hours chart, the Momentum indicator keeps heading north, despite being in extreme overbought territory, whilst the RSI indicator consolidates around 76. The pair has set a year high at 1.4769 last May, the immediate bullish target, should the price extend beyond the 1.4710 level. Still, trading Pound crosses has turned extremely risky, and tight stops should be compulsories. 

Support levels: 1.4620 1.4555 1.4510

Resistance levels: 1.4710 1.4765 1.4800 

USD/JPY Current price: 103.89

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The USD/JPY pair resumed its decline late in the US afternoon, after failing to overcome the 105.00 level earlier in the day. As the week kicked in with risk aversion easing, the Japanese yen saw a moderate slide against most of its major rivals, but broad dollar's weakness prevented the pair from rallying. There were no macroeconomic releases in the US to motivate investors, neither news to trigger this current decline in the pair, which clearly indicates the strength of the dominant bearish trend. Now extending its decline below the 104.00 level, the pair is poised to retest the multi-year low set last week at 103.54, and even break lower, should the positive sentiment begins to fade. Short term technical readings support such decline, as in the 1 hour chart, the early intraday recovery stalled short from a strongly bearish 100 SMA, now around 104.90,, whilst the technical indicators head strongly lower within bearish territory. In the 4 hours chart,  the Momentum indicator turned sharply lower from positive territory and is now crossing its mid-line towards the downside, whilst the RSI heads strongly south around 33, in line with the steeper decline seen in the shorter term. 

Support levels: 103.55 103.20 102.70

Resistance levels: 104.20 104.60 105.00 

AUD/USD Current price: 0.7456

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The Australian dollar benefited from worldwide soaring stocks, rising against the greenback up to 0.7480, before retreating partially. The pair is finding some short term buying interest around 0.7450, the 38.2% retracement of this year's rally, but remains unable to confirm a clear breakout of the level. The RBA will release the Minutes of its latest meeting during the upcoming Asian session, whilst RBA Governor Debelle is due to speak about "Liquidity in Domestic Fixed Income Markets," in Sydney. There shouldn't be any surprise coming from the Minutes, although any comment refereeing to another possible rate cut over the near future should put the Aussie under selling pressure. Technically, the 4 hours chart shows that the technical indicators are retreating from near overbought territory, but are still within positive territory, with the RSI pretty much flat around 62 and the price holding well above a bullish 20 SMA, all of which should keep the downside limited. The immediate resistance comes at 0.7505, June 9th daily high and the level to surpass to confirm further gains for this Tuesday. 

Support levels: 0.7450 0.7410 0.7370 

Resistance levels: 0.7505 0.7540 0.7580