EUR/USD Current price: 1.1205
The EUR/USD pair fell sharply with London opening, as banking woes in Europe triggered risk-averse trading late Thursday. News that the Deutsche Bank has to face a fine of up to $14 billion for mis-selling mortgage securities in the US. Shares of the German lender fell below €10 this Friday for the first time ever, prompting further losses in the common currency. Adding to the negative mode, Commerzbank, the second largest German bank, announced that it will cut as much as 7,300 jobs and stop paying a dividend amid a broad restructuring of its business.
Data released early Europe showed that the unemployment rate in August, remained at 10.1%, against expectations of a slight improvement, while in the same month, inflation in the region rose by 0.4% in September, according to preliminary estimates and matching expectations, while compared to a year before, it came in at 0.8%, below expectations of 0.9%. Ahead of Wall Street's opening, the US released its Personal Income and Spending figures, generally disappointing as spending resulted flat at 0.0% while income, rose by 0.2% as expected, both when compared to July.
The EUR/USD pair recovers modestly from a daily low of 1.1153, although in the short term, the movement seems just corrective, as technical indicators are barely bouncing from oversold readings, whilst the price remains well below its moving averages, with the 20 SMA having accelerated its decline and crossed below the 200 SMA. In the 4 hours chart, the price has also moved sharply below its moving averages, while technical indicators have pared their declines, and are aiming modestly higher, still below their mid-lines. The pair needs to recover above 1.1190 to get rid of the short term negative tone, although renewed selling interest below the mentioned daily low, will likely see the pair quickly extending to 1.1120, the base of its latest range.
Support levels: 1.1120 1.1080 1.1045
Resistance levels: 1.1190 1.1235 1.1280
GBP/USD Current price: 1.3002
View Live Chart for the GBP/USD
The GBP/USD pair traded choppy below the 1.3000 figure, weighed by market's negative sentiment, but with Pound's decline limited by a positive revision of the UK Q2 GDP. The final revision of second quarter growth came in better than expected at 0.7%, from previous 0.6%. Also released this Friday, the current account deficit widened in the same quarter to £-28.684B, but below the £-30.50B expected. The pair traded between 1.2036 and 1.2991 during the European session, holding mid range ahead of the US opening, and with the short term picture presenting a neutral-to-bearish stance, as in the 1 hour chart the price is unable to settle above a bearish 20 SMA, whilst technical indicators remain flat around their mid-lines. In the 4 hours chart, the price retreat from its 20 SMA on an intraday spike, while the Momentum indicator heads south within bearish territory and the RSI indicator consolidates around 41, leaning the scale towards the downside.
Support levels: 1.2935 1.2900 1.2870
Resistance levels: 1.3000 1.3040 1.3100
USD/JPY Current price: 101.17
View Live Chart for the USD/JPY
Bearish momentum eases, but is not over yet. The USD/JPY pair fell down to 100.74 during the past Asian session, with the JPY on demand amid risk aversion, although the pair managed to bounce back above the 101.00 figure during the European morning on broad dollar's strength and as equities pared losses and began to recover ground. Following the release of US data, the pair turned modestly lower, although it's still above the 101.00 level. Technically, the 1 hour chart shows that the price remains above its 100 and 200 SMAs, both horizontal between 100.70 and 100.90, while technical indicators have turned lower around their mid-lines, not enough to confirm further slides ahead. In the 4 hours chart, the price is below its moving averages, but with no directional strength, whilst the technical indicators have turned flat within positive territory, also failing to give clear directional clues.
Support levels: 101.00 100.65 100.30
Resistance levels: 101.40 101.85 102.30
AUD/USD Current price: 0.7635
View Live Chart for the AUD/USD
The AUD/USD pair fell down to 0.7589 during Asian trading hours, a fresh weekly low, dragged lower by the sharp decline in Asian equities, although the pair managed to bounce from the strong static support region, accelerating its gains on tepid US data. Now trading around 0.7635, the 1 hour chart shows that the price is advancing above a still bearish 20 SMA, whilst technical indicators head sharply higher, and are about to enter positive territory. In the 4 hours chart, however, the pair remains below a bearish 20 SMA, whilst technical indicators remain within negative territory, indicating that further gains are limited at the time being. An upward extension above 0.7650, however, should anticipate further gains towards the 0.7700 critical figure.
Support levels: 0.7600 0.7570 0.7530
Resistance levels: 0.7650 0.7690 0.7735
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD turns negative near 1.0760
The sudden bout of strength in the Greenback sponsored the resurgence of the selling pressure in the risk complex, dragging EUR/USD to the area of daily lows near 1.0760.
GBP/USD comes under pressure and challenges 1.2500
GBP/USD now rapidly loses momentum and gives away initial gains, returning to the 1.2500 region on the back of the strong comeback of the US Dollar.
Gold retreats from highs on stronger Dollar, yields
XAU/USD trims part of its initial advance in response to the jump in the Dollar's buying interest and the re-emergence of the upside pressure in US yields.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Week ahead – US inflation numbers to shake Fed rate cut bets
Fed rate-cut speculators rest hopes on US inflation data. After dovish BoE, pound traders turn to UK job numbers. Will a strong labor market convince the RBA to hike? More Chinese data on tap amid signs of slow Q2 start.