EUR/USD: eyeing key 1.3640 support

04.04.2014 13:16:02

EUR/USD Current price: 1.3720

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The EUR/USD shed more ground after ECB President press conference, having exhibited a pretty wild behavior in between the unchanged rates of the Central Bank, and the final dovish statement opening doors to the use of “unconventional instruments within its mandate in order to cope effectively with risks of a too prolonged period of low inflation.” 

Investors run to price in the future action, and the pair tested a low of 1.3695, before putting a shy bounce that extended up to 1.3722. Nevertheless, the bearish tone prevails with the hourly chart showing price developing below the 50% retracement of its latest bullish run, and indicators recovering some from extreme oversold readings. In the 4 hours chart the technical picture is also quite bearish, with immediate support now around 1.3640/60 price zone, where daily lows and highs converge with a long term ascendant trend line. A break below this last, on positive US employment readings, may trigger a strong downward continuation for the days to come, eyeing 1.3420 as next midterm support area.

Support levels:  1.3710 1.3670 1.3640

Resistance levels: 1.3750 1.3780 1.3815 

EUR/JPY Current price: 142.46

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Yen weakness with the news maintained slides in EUR/JPY limited, albeit the hourly chart shows price struggling to hold now above its 100 SMA. Indicators in the same time frame stand near oversold readings, while the 4 hours chart shows an increasing bearish potential, with indicators heading strongly down and approaching their midlines. The 38.2% retracement of the latest bullish run stands at 142.10, and a break below will likely force buyers to unwind positions, sending the pair lower towards 140.80 price zone.

Support levels: 142.10 141.30 140.80

Resistance levels: 143.40 143.90 144.60

GBP/USD Current price: 1.6586

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The GBP/USD was under pressure already before the ECB announcement, and despite being affected by dollar demand, the move lower remained subdue. Ahead of Asian opening the hourly chart shows price below a bearish 20 SMA and indicators flat in negative territory, while in the 4 hours chart technical indicators maintain a clear bearish tone while price finds short term sellers around its 200 EMA currently at 1.6600. Still quite close to the 1.6600 figure, the short term slide may extend down to 1.6550 yet it would be a break of this last that will confirm a bearish continuation in the pair.

Support levels: 1.6550 1.6510 1.6470

Resistance levels: 1.6610 1.6650 1.6690 

USD/JPY Current price: 103.87

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The USD/JPY was unable to extend beyond the 104.00 figure but remains close to it, and will likely maintain the range ahead of US employment data, that could be determinant for current bullish trend. Technically, the pair will remain on demand as long as above 103.60 with a break above 104.10 now required to confirm another leg higher.

Support levels: 103.60 103.30 102.80

Resistance levels: 104.10 104.45 104.80 

AUD/USD Current price: 0.9226

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The AUD/USD continues to quietly consolidate with a slightly bearish tone as per lower lows reached daily basis. The hourly chart shows 20 SMA heading lower and price hovering around it, while indicators present a neutral stance consolidating around their midlines. In the 4 hours chart technical indicators grind lower below their midlines, wile 20 SMA stands flat above current price acting as short term resistance around 0.9250. 

Support levels: 0.9220 0.9170 0.9135

Resistance levels: 0.9250 0.9300 0.9345