Forex Technical Analysis: EUR/USD, pressuring again 1.2440

EUR/USD Current price: 1.2451


An exceptionally busy Monday saw majors trading in wide intraday ranges, with the dollar standing as the overall winner by US close. The event of the day has been no doubts ECB President’s testimony before the Committee on Economic and Monetary Affairs, in Brussels. His remarks has been for the most already known but he may some direct reference about  expanded purchase program could include government bonds, sending EUR/USD to its daily low of 1.2444 mid American afternoon.

The pair has found sellers around a critical resistance area, the 50% retracement of the latest daily slide from 1.2770 to 1.2357 around 1.2570, from where it slide slowly but steady, with the greenback regaining its charm and attracting buyers with the European opening. As the day comes to an end, the 1 hour chart shows price below moving averages and struggling around the 23.6% retracement of the same rally around 1.2455, whilst indicators remain well into negative territory, losing their bearish strength. In the 4 hours chart there is a mild bearish tone coming from technical readings, with some downward follow through now required to confirm further declines.

Support levels:  1.2400 1.2360 1.2320

Resistance levels: 1.2460 1.2515 1.2545

EUR/JPY Current price: 144.98

Yen appreciated over Asian hours particularly against the EUR, after Japanese GDP readings resulted weaker than expected, sending local shares strongly down. And whilst other crosses managed to regain some ground, self EUR weakness kept EUR/JPY subdued: the pair set a daily low of 144.78 and struggles now around the 145.00 figure, with the 1 hour chart showing price nearing its 100 SMA, still offering dynamic support around 144.40, while indicators stand directionless below their midlines. In the 4 hours chart , indicators turned south but hold above their midlines, with momentum showing some strong bearish divergences staring November 1st, being the only  sign the pair may ease further, something yet not clearly seen.  Immediate short term resistance stands around 145.30/40, so a recovery above the level should favor some further recoveries, while below 144.80 risk towards the downside increases.

Support levels: 144.80 144.40 143.90

Resistance levels: 145.35 145.85 146.30

GBP/USD Current price: 1.5638

Pound surged up to 1.5735 against the dollar, where sellers took their chances, pushing the pair back towards a daily low of 1.5619: the GBP/USD pair consolidated in a 40 pips range for most of the last session near mentioned low, maintaining the overall bearish tone. Short term, the 1 hour chart shows price below its 20 SMA as momentum heads lower below 100 and RSI stands flat at 42. In the 4 hours chart 20 SMA presents a strong bearish slope, having capped the upside around mentioned high, while indicators turn slightly up well into negative territory. A break below 1.5585 this year low, is now required to confirm a downward continuation, while recoveries are seen as selling opportunities up to 1.5770 price zone.

Support levels: 1.5620 1.5585 1.5550

Resistance levels: 1.5670 1.5700 1.5740

USD/JPY Current price: 116.46

Having bottomed intraday at 115.45, the USD/JPY proved once again its charm, with the pair regaining most of the ground lost earlier on the day. The pair’s 1 hour chart shows a short lived dip below 100 SMA, now around 115.90 acting as dynamic support, while momentum heads strongly up above 100 and RSI advances slowly around 58. In the 4 hours chart indicators present a mild positive tone after bouncing from their midlines, with price well above moving averages; furthermore, the distance in between 100 and 200 SMAs widened another sign of the dominant interest in the pair.

Support levels: 115.90 115.50 115.10

Resistance levels: 116.60 117.05 117.45

AUD/USD Current price: 0.8714

The AUD/USD flirted with the 0.8800 figure at the weekly opening, but finally capitulated to dollar demand, ending the day a few pips above the 0.8700 figure. Early Tuesday, the RBA will release the Minutes of its latest meeting, and Governor Stevens is expected to give a speech afterwards, which should give some volatility to the pair. Technically, the 1 hour chart maintains a clear bearish tone ahead of Asian opening, with price well below its 20 SMA and indicators in negative territory, while the 4 hours chart shows a stronger bearish momentum after price faltered to extend gains above its 200 EMA currently around 0.8780. Upcoming direction will likely be linked to RBA Stevens words rather than technical readings, with 0.8650 being the critical support to follow, as if below, stops will likely be triggered and the downside extended.

Support levels: 0.8690 0.8650 0.8610

Resistance levels: 0.8740 0.8780 0.8820