EUR/USD: correction may reach 1.3180

EUR/USD Current price: 1.3298

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In a journey dominated by risk aversion, the EUR/USD managed to hold the 1.3300 level, until EU Juncker said euro exchange rate was “dangerously high”. His words triggered a bearish run in the pair that reached the 38.2% retracement of its latest bullish run at 1.3264, before bouncing back towards the 1.3300 area. Early slide in stocks that feed market negative sentiment, was reversed late US session, with some comment from FED’s member Rosengren, who sees there’s scope to enlarge QE if jobs situation does not improve. The reversal in stocks and sentiment, helped EUR/USD recover ground, yet the pair was unable to extend above the 23.6% retracement of the same rally at 1.3318 and immediate resistance level. For the short term, the hourly chart shows a bearish tone, with 20 SMA above current price and indicators heading lower below their midlines. 4 hours chart shows an increasing bearish potential also coming from indicators, yet the downside still seems tough. Break below the Fibo level however, should put the pair under pressure, with 1.3180 strong support level then at sight.

Support levels: 1.3265 1.3220 1.3180

Resistance levels: 1.3320 1.3360 1.3400 

GBP/USD Current price: 1.6065

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Pretty much unchanged, the GBP/USD continues to orbit around the 1.6065 static level, unable to set a clearer trend since the week started. The hourly chart a slightly bearish tone with indicators right below their midlines and price hovering around 20 SMA, while in the 4 hours chart indicators gain bearish momentum below their midlines, pressuring the pair to the downside. Above 1.6100, the bearish pressure may ease although only above 1.6130, a short term descendant trend line, the pair may found strength enough to start posting gains. 

Support levels: 1.6025 1.5990 1.5950 

Resistance levels: 1.6095 1.6130 1.6160

USD/JPY Current price: 88.81

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The USD/JPY recover from 88.28 daily low was unable to regain the 89.00 level, and the pair trades right below it, finding short term resistance in the hourly 100 SMA, that holds a bullish slope.  While the hourly chart shows indicators standing at neutral territory with no upward momentum, the bullish bias persists in the pair, as latest dip seems just corrective. In the 4 hours chart indicators are bouncing higher from around their midlines, which also suggest the downside will remain limited. The pair however needs to regain 89.30 area, to be able to regain previous bullish strength and attempt a run towards the 90.00 level.

Support levels: 88.70 88.30 88.00

Resistance levels: 89.00 89.30 89.65 

AUD/USD: Current price: 1.0555

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The AUD/USD found buyers again today around 10520, managing to recover back to where it started. Little changed intraday, the hourly chart shows price above 20 SMA and indicators in positive territory, yet readings hold a neutral stance giving not much clues on next move. Short term resistance comes around 1.0580/1.0600 area, and only a clear break of this last will favor an upward continuation towards 1.0660, while dips up to 1.0490 are seen as buying opportunities in the pair.

Support levels: 1.0520 1.0490 1.0450

Resistance levels: 1.0580 1.0600 1.0640


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