Consumer confidence slump in the U.S. falling under 50 level, and triggering a mayor risk aversion rally across the board that favours greenback as stocks turn negative in the U.S. Euro has 1.4040 ahead of 1.4000 zone, thus a bit over sold in smaller time frames.

USD/JPY Current Price 96.44

Pair surpassed yesterday’s high suggesting 96.00 has turned into a key support level to watch. Hourly indicators are clearly bullish despite in smaller time frames pair seems a bit over bought. Expect a minor downside correction before next up leg.
Support levels: 96.20 95.80 95.55
Resistance levels: 96.60 97.15 97.50

 
USD/CHF: Current Price: 1.0837
As, expected 61.8% Fibonacci rally retracement mentioned in Asian update has hold the downside, and the pair is turning slightly bullish in the hourly. So far 200 EMA around 1.0850 is holding the upside and above, 1.0870, 38.2% of the mentioned rally, is the point to watch for further raises.
Support levels: 1.0800 1.0770 1.0720
Resistance levels: 1.0840 1.0870 1.0920

Gbp/Usd halted just in a short term ascendant trend line, and regained the 1.6600 zone at the moment. If manages to hold above this level, expect and upside continuation in the pair. Resistances will come at 1.6660 1.6700 zone and above 1.6750 today’s high. Clear break above that level, 1.6800, 50% retracement of the monthly fall 2.0158/1.3502 is the next key level to consider. To the downside supports will come at 1.6560, the ascendant trend line, followed by 1.6520 and finally the 1.6470 zone.

Not that breaks have been clear and accurate lately, yet we are above 1.4100 and attempts to the downside have failed so far, so we could expect some more upside movements in the pair for the next hours. Indicators remain flat to tell, thus 20 SMA along with a small ascendant trend line should hold the downside today. Resistance will lie at 1.4150, today’s high, followed by the 1.4180 zone and 1.4220. Supports will be at 1.4100 1.4080 and the 1.4050 zone.

Here is the majors sentiment for today:

Eur/Usd: Bullish

Gbp/Usd: Sligthly Bearish

Usd/Chf: Bearish

Usd/Jpy: Slightly Bullish

Eur/Gbp: Neutral

Hi everybody welcome back! Well, risk appetite and optimism dominate Asian session, with dollar and yen down, yet as we expected Gbp was hit  by early Europe news: U.K. economy shrank more than expected, the biggest contraction since 1958, with GDP falling 2.4%, current account revised to the downside and also printing a terrible -8.8%, falling back under 1.6600 after hitting a fresh year high above 1.6720 zone. Stocks in Asia rose but not enough to break the 10.000 level, and European indexes are barely fighting the positive. Euro break to the upside and remains above the descendant trend line and above the 1.4100, suggesting further rises. The day is young we have more news to take care of, so here is the link for today’s calendar:

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 

Despite the pair remains trapped in range, break above the descendant trend line trigger some upside momentum in the pair, that is still capped under 96.00/10. Clear break above that level, could see the rally extend to as far as 97.20 next key level in bigger time frames. 4 hours indicators remain bullish, and rising stocks support the continuation in the pair.

USD/JPY Current Price 95.41

Consolidating just under key 95.60 level, pair seems slightly bullish both in 1 and 4 hours charts, yet we need some confirmation above the mentioned zone to support the bias. 20 SMA in the hourly under current price and turning to the upside give some support thus ranging and low volume are limiting today’s chances of a break.

Support levels: 95.26 94.80 94.45       Resistance levels: 95.60 96.00 96.30

Gbp is pushing higher and aproaching again to the 1.6600 zone, roof of the horizontal channel we have been following. Again the lack of volume is keeping the pair from running thus 4 hours charts are clearly bullish at this point. Above 1.6610 resistance will come at 1.662, year high. On the other hand, supports will be at 1.6510, 1.6470 and 1.6440 zone.

Eur/Usd is slowly approaching to the daily descendant trend line we have been following since past week, today around 1.4100 and first resistance to consider. If above, 1.4140 is next zone to consider, but seems hard to be reach today with current lack of volume. Under 1.4036 consider supports at 1.4010 and 1.3980 zone.