Key Economic Data - Coming Up Today (All Times GMT+3)
The EURUSD made a new 22 month low at 1.2697 driven both by Euro weaknesses and US Dollar strength. Data out today is expected to show the US economy grew at an annualized rate of 4.6%. Whereas Eurozone GDP printed at 0.0% recently and may slip into recession. The contrast is easy to see and in economic terms this is called dual speed growth between the two economies. This means that the US economy is growing strongly and this makes the US economy more attractive for investment and at the same time the Euro economy is underperforming and not so attractive for investments, corporate or otherwise. After reaching 1.2697 the pair rebounded to 1.2770, and is now trading at 1.2749. A breach above of the 1.2815, 1.2825 and then 1.2835 is required to signal a possible upward correction. At present the Euro is under pressure with the pair below 1.30 and still trading below the downtrend channel as seen in the H4. As long as the pair remains below 1.30 and below the downtrend channel, the bias remains bearish.
EURUSD Support areas include 1.2700, 1.2675, 1.2660 followed by a key support at 1.2550. Resistance levels above are at 1.2800, 1.2900 1.2959, 1.30 figure level, followed by 1.3165.
EURUSD 15 Min Chart
EURUSD H4 Chart
The GBPUSD held above the key 1.6275 area identified in yesterday's report and has risen as high as 1.6345. The pair is currently trading around the 1.6315 area. If the price holds above 1.6275 area there is an increased possibility that the recent pound strength will continue. The pair has been in a wide range between 1.6060-1.6520 recently. A break below 1.6265 and then a move below 1.6150 will make the picture more ugly for the GBP, after which lies the 1.6000 support. A move above 1.6520 will create a bullish impetus and bias. No Economic Data from the UK, this week has been short on UK economic data.
GBPUSD support areas include 1.6300, 1.6270, 1.6150, 1.6100, 1.6000, 1.5900, and 1.5850. Resistance levels and upside targets at 1.6365 and 1.6500, 1.6600, 1.6750.
GBPUSD 15 Min Chart
The AUDUSD which has fallen sharply this month is now trading at 0.8785. A decline to 0.8656 will signal a 4 year low and levels not seen since 2010. The Aussie became extremely overbought in 2012 and 2013 with large Fx Funds losing money on shorts between 0.88-1.12. Many of these funds were taking Puts and Shorts on the AUDUSD from around the 0.90 level only to see the price reach 1.12. This month the pair is down from high to low from 0.9401 to 0.8748, this equates to a decline in excess of 7%. The low was reached this morning and the price has since made a small upward correction. It remains to be seen if this is a consolidated move higher or simply some short covering action.
Support levels for USDJPY can be seen at 0.8750, 0.8700, 0.8655. Resistance to the upside at 0.88, 0.8875, 0.8925, 0.90.
AUDUSD 15 Min Chart