by Valeria Bednarik. FXStreet
EUR/USD current price: 1.1205
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The EUR/USD pair trades flat around Friday's close, confined to a tight 20 pips range ever since the day started. Despite fears over a Deutsche Bank (DB, Financial)Â collapse have eased late Friday, and therefore risk-averse sentiment, the common currency remains unmotivated. The pair remained stuck even after the release of positive European data, showing that growth picked up at the end of the third quarter. The European Union September Market PMI came in at 52.6, unchanged from the initial estimate, but at a three-month high. German PMI also printed a three-month high, rising to 54.3. After Wall Street's opening, the U.S. will release its ISM manufacturing PMI for the month, expected at 50.3 from previous 49.4.
The short term picture for the pair remains neutral, although with a slightly positive tone, as in the one hour chart, the price is developing above its moving averages, yet technical indicators remain stuck directionless around their mid-lines. In the 4 hours chart, the technical outlook is also neutral with indicators turning modestly lower around their mid-lines. U.S. data can trigger some action, particularly if it diverges strongly from market's expectations, but seems unlikely the pair can move beyond 50 pips, one way or the other this Monday.
Support levels: 1.1200 1.1160 1.1120
Resistance levels: 1.1245 1.1280 1.1335
GBP/USD current price: 1.2864
View Live Chart for the GBP/USD
The GBP/USD pair fell to its lowest since early July, printing 1.2845 after London's opening, amid arising concerns over a "hard Brexit," after Theresa May announced during the weekend that will start the process of exiting the EU late March 2017. The Pound gapped lower against all of its major rivals at the weekly opening, still unfilled, with an intraday bounce contained below 1.2900. The pair recovered modestly after the release of the U.K. September Market manufacturing PMI, which came in at 55.4, the highest level in over two years, but stands now near the low, overall bearish. The one hour chart shows that the price is well below a bearish 20 SMA, while technical indicators have resumed their declines within bearish territory after correcting oversold readings, maintaining the risk towards the downside. In the 4 hours chart, technical indicators head sharply lower, despite being in oversold levels, while the 20 SMA has accelerated its decline above the current level, all of which supports a retest of the 31-year low of 1.2793 posted last July.
Support levels: 1.2845 1.2795 1.2750
Resistance levels: 1.2890 1.2940 1.2980
USD/JPY current price: 101.32
View Live Chart for the USD/JPY
Consolidating ahead of Payrolls. As the EUR/USD, the USD/JPY pair trades flat within Friday's close, modestly lower ahead of the U.S. opening. Given that Central Banks are for now out of the picture, and that the U.S. will release its September employment data next Friday, seems unlikely that the pair will do much until then. Also, China is experiencing its Golden Week, with local markets pretty much closed all the week, anticipating limited action during Asian trading hours. Short term, the downward potential is limited, as the price is developing above its moving averages, with the 100 SMA heading modestly higher after crossing above the 200 one, although with indicators directionless around their mid-lines. In the 4 hours chart, the price is below its 100 and 200 SMA, while indicators also lack directional strength, also indicating some further range trading for today.
Support levels: 101.00 100.65 100.30
Resistance levels: 101.85 102.30 102.70
AUD/USD current price: 0.7671
View Live Chart for the AUD/USD
As risk sentiment eased, the Aussie recovered some ground, with the AUD/USD pair advancing up to 0.7681 so far this Monday, retreating modestly ahead of the U.S. session, but holding within positive territory. The one hour chart shows that the price is well above its 20 SMA that anyway is losing upward strength, while technical indicators in the mentioned time frame have also lost bullish momentum, but hold within positive territory. In the 4 hours chart, indicators are flat around their mid-lines and the price above its 20 SMA, currently around 0.7650, providing an immediate support for the upcoming hours.
Support levels: 0.7650 0.7600 0.7570
Resistance levels: 0.7690 0.7735 0.7770
Disclosure:Â The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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