EUR/USD : The cross plummets after the ECB cut benchmark interest rate 25 bps to a historic low at 0.75%, which equaled expectations. Buy a put option in case of breaking below 1.2400 main near-term support and the 1-month trading platform. To confirm basing attempt the price should stabilize above 1.2500 barrier. There is also a fundamental factor for bulls if the US ADP came in worse than expected.
GBP/USD: As noted on yesterday’s review for the cable, the pair is pricing ECB rate cut and BOE’s QE expansion but the decline was limited at 23.6% retracement of last downleg near 1.5550. The mentioned mark contained dips and paused weakness so far. Thus, clearance of the latter support would favor adding put options. On the flip side, only above 1.5615, 200 HMA and previous support could ease immediate bear pressure but activating call options would require a sustained close and preferably to see a throwback that respects 1.5600 as support .
USD/JPY: The 79.95 mark is a crucial resistance factor, represents a solid double high pattern on the small frames and Fib 23.6% of 77.65-80.56 upswing. Break here would allow binary traders to take some call positions but with short expiry times as extending rally above 80.00 barrier isn’t guaranteed. Nonetheless, if today’s ceiling of 80.10 was taken out it will create a less risky opportunity and wider room to place additional call options .
USD/CHF: There is a key bullish breakout above 0.9677 which is a 4-week high that capped upside since early June. Mixed sentiments could make this clearance as false. Hence, if the cross extended gains above 0.9690, 78.6% retracement of broad weakness connecting to 0.9770, that would suggest short-term bulls remain fully in play and thus to buy call options. Conservative traders might await the rally to reclaim 0.9700. There is another bullish scenario. The price might retreat to probe some supports before pushing further to upside and 61.8% retracement at 0.9635 could be a suitable place to renew buying interest.
AUD/USD: After peaked a fresh 2-month high at 1.0327, the pair retreated as the US dollar finds support from cross buying against European majors. We suggest that the Aussie would remain well supported as it could benefit from greenback’s overall weakness as well as the commodity currency will be more resilient against potential strength that could be triggered by EU easing measures or upbeat American data. Therefore, we prefer to buy the cross declines below 1.0250( 200 Day-MA).
The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.