I rather post bigger charts today, as I don’t expect too much action in the next and last, trading hours of the day. Take a look at the daily chart of Gbp/Usd: this week high has reached and failed to break above the 61.8% and today’s candle opened just under the 20 SMA, that lost the bullish slope and turned flat. We must also consider the fact that the pair has been trading between 1.62/1.66 from early June, and talking of dailies, we need to wait for the close, yet, if the day ends under 1.6350, then the 1.6200 will be our first mid term support, followed by 1.6060, 50 % retracement f the rally. under that level, we have a number of minimums along with 200 EMA around 1.5750, so there is a likely target to the downside for next week. On the other hand, if pair manages to regain the upside and  close the day above 1.6430 or so, breaking back 20 SMA to the upside, longer term resistances will be at 1.6600 and 1.6740 zone. Above that 61.8%, likely target will be around 1.7100 in the mid term.

Here is the majors sentiment for today:

Eur/Usd: Neutral

Gbp/Usd: Bearish

Usd/Chf: Neutral

Usd/Jpy: Neutral

Eur/Gbp: Slightly Bullish

Hi everybody and welcome to Friday! quiet morning in Europe, as yesterday’s storm seems to have been enough for market. Early Asia, dollar managed to gain some extra ground under key support levels, and majors have been  moving in a tight range since then, mostly because, against expectations, Nikkei manage to close the session barely 50 points negative, without following U.S. stocks as usual. Early Europe, retail sales fell in May in the 16 countries that use the euro, in a further sign that consumers aren’t optimistic as we would like to believe.

Before starting the technical analysis, have you noticed, both euro zone and U.S. have a 9.5% unemployment rate? something we have been discussing largely in the Daily Wrap up webinar: if people keeps on losing jobs, how can we be talking about “bottoming crisis”? Well, numbers are telling different than policy makers, and that’s why we have the market we have.

No fundamentals today, holiday in the U.S. Be right back with some technicals for today. Have a great day and a better weekend!

EUR/USD Current price: 1.4054

Bearish in the hourly, pair is holding above 1.4040 static support zone, ahead of 1.4000 psychological level. With indicators suggesting more downside pressure, expect the rally to accelerate under that level. 4 hours indicators support the perspective also.
Support levels: 1.4040 1.4000 1.3960
Resistance levels: 1.4090 1.4135 1.4170
GBP/USD Current price: 1.6388

Under selling pressure, pair seems unable to regain the 1.6420 zone. A descendant trend line, along with 20 SMA should cap the upside, while clear break under today’s low at 1.6330 will accelerate the downside. Bigger time frames support the perspective as daily charts are about to give bearish signals.
Support levels: 1.6330 1.6280 1.6250
Resistance levels: 1.6420 1.6470 1.6520
USD/JPY Current Price 96.00
Falling strong, 96.00 is barely holding the downside despite indicators are close to oversold conditions in the hourly. Hourly candle opening under 95.90 or so, could trigger some bearish momentum in the pair, as bigger time frames also support further falls.
Support levels: 95.90 95.50 95.20
Resistance levels: 96.30 96.80 97.00

Number of employment lost rose to -467, and unemployment rate increase to 9.5% less than expected. Yen spike quickly to the upside, while dollar spike against European and quickly come back, still we have to listen what Trichet has to say. Market players are quite nervous at this time. Funny, unemployment rate, 9.5%, the same in Europe and in U.S.

I will be covering live the first part of today’s news. You can watch it live at www.fxstreet.com home page, and we will discuss there key level to watch during and after the releases.

See you there!

Here is the majors sentiment for today:

Eur/Usd: Slightly Bearish

Gbp/Usd: Bearish

Usd/Chf: Sligthly Bullish

Usd/Jpy: Bullish

Eur/Gbp: Bullish

Hi everybody welcome back! day has come again and we will hear Mr Jean Claude Trichet economic perspective for Europe. I don’t know how hawkish he could be with unemployment rate rising to 9.5% early this morning, but well, his speech along with Non Farm Payrolls (the U.S. expect more or less the same unemployment rate, at 9.6%) will no doubts bring volatility to this pre holidays thinner market. We don’t expect Trichet to change the minimum bid rate of 1% so here is the link for today’s calendar, while I prepare for the live coverage!

http://www.fxstreet.com/fundamental/economic-calendar/

Have a great day! 

Remember I will be in Barcelona in October! Here is the link if you want to know more about it: http://www.traders-conference.com 

Pair regained the upside, and Euro is back above 1.4100. Watch the 1.4150/60 zone, that should halt current rally. Clear break above that level, will appoach the pair to the 1.4200 level, tops for today. Under 1.4085, supports will come at 1.4040/50 and 1.4010.