Good pullback on oil

The March contract for light crude oil has made a very good bullish pullback from the 28.00 zone to the 30.00 level. On the 4 hour chart we can see that the price has broken above the 21 period exponential moving average and that could be indicating a possible change in direction. However, the 30.00 level could act as resistance and the price may try to go back down. In case the price breaks above the 30.00 level, then the 31.00 could act as its next resistance. To the down side, its most recent low around the 28.00 level could act as support once again, but we should keep in mind that as that price keeps visiting the same level, the probabilities of breaking it rise.

Japanese authorities are worried about the Yen’s rally

The Dollar versus the Yen rallied for today after certain media sources said that the Japanese authorities are worried about the strength that the Yen has been showing lately. This has made a lot of people think that there could be some intervention by the Bank of Japan. That is why the USD/JPY bounces to the upside from the 116.12 zone. But we still have to see the price breaking above the 118.00 level, because that level has been a good resistance zone.

Pound falls to 2009 lows

The Pound versus the Dollar falls close to the 1.4100 level after the governor of the Bank of England, Mark Carney, said that the central bank is way too off before raising its interest rates. This has caused the Pound to give back its gains versus the Dollar and loses ground versus 31 other currencies. According to Carney, the drop in oil prices has kept inflation low in the UK, and that the British economy is still very weak. Therefore, the GBP/USD may try to visit the 1.4100 level.

Possible lower low on the AUD/USD

The AUD/USD has had a well-sustained bearish trend, tracing lower lows along the way. On the daily chart we can see that below the 0.7000 level the pair was consolidated to continue going lower and making a lower low. This time the price breaks below the 0.6900 level. On the last few daily candles we can see that the price is trying to retrace to the upside, but that retracement is kind of losing its momentum. Price may continue going lower, but the 0.6800 level could become a support.

Longer-term range on the EUR/USD

Lately, the focus in the financial markets has been the Chinese economy and crude oil. The Euro versus the Dollar has not gotten enough reasons to move in a clear direction. The price of the EUR/USD is practically consolidated. This pair is used to having long, sustainable trends that is why now we can see that the pair is really undecided, regardless of the daily volatility. The 1.0900 level has been its mid-point zone. There is no clear trend until the pair breaks above the 1.1000 level or below the 1.0700 level.

The GBP/USD in a resting zone

The Pound versus the Dollar has been falling lately and even though the bearish trend is still in place, during the last few daily candles we can see that the price has consolidated around the 1.4400 level. It is normal for price to try to rest after the big drop, but the bearish trend is still in place and it may try to continue going lower. To the downside, the 1.4300 level could act as its next support. To the upside, in case the price retraces, the 1.4600 may act as a resistance. The 1.4500 level is too close to the current price level, and that is why that level should not be considered an important resistance area.

Market rally did not last that long

The WTI light crude oil came back down to the 31.00. The main commodity currencies fall back down after starting the session to the upside. Even though the Australian Dollar and the New Zealand Dollar started the day to the upside, towards the end of the session the both fall versus the US Dollar along with the Canadian Dollar. The AUD/USD made a high around the 0.7049 level, but then it falls to the 0.6950 level. The NZD/USD made a high around the 0.6590 level, but it also falls to the 0.6520 level. The USD/CAD breaks above the 1.4300 level and it is coming close to the 1.4400 zone. We can clearly see that things have gone bad for commodities and its currencies.