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CURRENCIES TECHNICAL ANALYSIS April.4

Euro

 

The US dollar remained on the back foot on Wednesday. The EUR/USD pair extended its losses the other day and moved to 1.2250 where sellers lost steam and stepped back for a night. Morning brought fresh bearishness to the market and the currency pair revisited the 1.2250 handle. The resistance resides at 1.2300, the support comes in at 1.2250.

 

If bears retain control, the single currency may soften to 1.2200 in the short-term.

 

GBP/USD

 

The EMA50 which is located in the 1.4100 area saved sellers from further losses. The line stood despite the overall buying pressure and rejected the pound towards 1.4000. The major was declining the whole European hours and reached the targeted level in the early NY session. The resistance lies at 1.4100, the support comes in at 1.4000.

 

If the sterling stays below or around 1.4100 the major may revisit the 1.4000 hurdle in the short-term. But first, the British currency needs to overcome the EMA100. Only then the road to the mentioned support will be opened.

 

USD/JPY

 

USD/JPY returned to a buy mode this week. The pair witnessed a fresh buying-wave on Tuesday when the price left the 106.00 area and strengthened up to 106.70. The major found fresh offers over there and turned around on Wednesday. Sellers regained control in the morning and reversed some of their losses pushing the spot towards 106.00. The resistance resides at 107.00, the support comes in at 106.00.

 

If the US dollar does not change it course, the pair may touch the level 107.00 in the coming sessions. If the selling pressure increases the currency pair may return below 106.00 and move towards 105.50.

 

GBP/JPY  

 

The upward momentum was strong and pushed the GBP/JPY pair upwards on Tuesday. The pound left the 149.00 area with the 50, 100 and 200 EMAs and headed north towards 150.00. The spot reached the hurdle in the mid-Asian session. Buyers lost momentum over there and retreated. The GBP/JPY pair turned bearish without buyers’ support and declined to the 149.00 level. The resistance lies at 150.00, the support is at 149.00.

 

If sellers keep challenging the 149.00 mark, they are likely to retake this level and return the pound in the 148.00 region.

 

EUR/JPY

 

EUR/JPY remained well offered on Wednesday. The recent recovery attempt stalled when the spot approached the level 131.00. This resistance area is reinforced by the 50-EMA and 100-EMAs which blocked the pair's further advance. The selling pressure increased in the night, the spot changed its course and returned to the red. A renewed selling interest around the euro sent the currency pair to the 130.00 support in the European session. The resistance lies at 130.50, the support is at 130.00.

 

We believe that the EUR/JPY has a potential to post more losses. The pair is likely to remain between 130.50 and 130.00 in the coming session. Should the negative bias remain intact, this pair may revisit the 129.50 support.

 

USD/CAD

 

The US dollar remained weak versus its Canadian peer. Sellers continued pushing the major lower and after breaking through the EMA50 and the EMA200 reached the 1.2800 handle. The selling pressure weakened after that and the pair spent the first part of Wednesday struggling hard to extend its gains. However, all sellers' attempts were useless and they retreated at noon. The resistance is at 1.2900, the support stands 1.2800

 

After a daily close below 1.2800, we could see the pair extending down to the 1.2700 region during the next days.  

 

DAX

 

DAX traded mixed on Tuesday. The index was under pressure the first part of the day. However, buyers managed to regain control in the afternoon and reversed the majority of their recent losses. A fresh buying pressure pushed the price from 11900 towards 12100. Buyers failed to hold onto gains on Wednesday. They lost control, as a result the DAX index dropped to 11800. The resistance lies at 11900, the support exists at 11800.

 

As the most probable scenario, we consider further moving downwards towards the level at 11700.

 

S&P500

 

S&P500 left the 2550 area as the selling pressure eased and sellers decided to book some profits. The benchmark regained some lost ground when buyers drove the index to 2610. Buyers failed to stay around fresh highs. A fresh selling pressure emerged in the morning and sent the price to the level 2580.The resistance lies at 2610, the support exists in at 2580.

 

A firm break below 2580 handle could trigger fresh weakness for attack at 2550.

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