The U.S. dollar is exposing some strength; the currency is the one and only star of today's session so far, scoring plenty of gains against its major counterparts.
Starting as usual from the euro; the downside pressure on the common currency is still dominant where concerns about the bond swap deal remains in focus.
TheEUR/USDpair printed a low at 1.3131 after starting the session at 1.3215, the downside pressure was able to push the pair below some important technical support levels starting from 1.3180 horizontal support, the 200 simple moving average over four-hour basis, in addition to the main ascending trend line around 1.3160. As a result we look for stability of trading for some time below this area, eyeing 1.3030 as the next obvious target. To the upside any correction should be limited below 1.3180 resistance now followed by 1.3240 at tops.
TheAustralian dollarwas humiliated dropping around 100-pips from opening price, which is one of the major losers against the greenback so far. If we examine the daily chart , there could be an interesting bearish scenario developing over here, the pair is trading below a giant double top formation, the neckline is around 1.0590-1.0600 level, thus if trading stabilizes below this level, we anticipate a major selloff to follow, targeting mainly the 200-days SMAaround 1.0400 areas.
Looking at the fundamental picture for the pair, the RBA held interest rates steady at 4.25% and said that they are open to further cuts if needed. The weakness we have seen today is also supported by the recent cut of China's GDP forecasts, in addition to the weaker than expected economic reports from Australia.
TheGBP/USDdidn't escape the selloff; the pair is trading below 1.5800 mark after opening the day at 1.5864. Price has breached a potential head and shoulders pattern after stabilizing below the neckline of the patter around 1.5800, however it is currently challenging the main ascending resistance of the recent bullish trend around 1.5770. Steady trading below this level shall extend the downside bearish action towards 1.5650. Failing to hold below 1.5800 may result in a retest of the next main resistance at 1.5880.
USD/JPYis taking some rest after the major run we have seen recently; the pair is currently correcting some of the recent gains. The pair managed to breach an intraday support at 81.15 in addition to a short term ascending trend, thus we may see further correctional movement eyeing the main ascending trend line and cluster of support levels around 80.00 areas, where we expect demand to show up again, and the bullish trend to resume targeting the recent high once more around 81.80 followed by 84.00 areas.