Technical Analysis for Major Currencies

EURO

The market has formed a spinning top candlestick pattern over daily basis yesterday. It seems that pair has lost its upside steam started at 1.2975 zones while Stochastic is on its way to show some kind of weakness. We will depend on the above mentioned technical factors to suggest a potential downside move today but areas of 1.3200 should be taken to confirm this intraday direction. The risk limit for bears should be at 1.3320-1.3325 zones.

The trading range for today is among key support at 1.3025 and key resistance at 1.3415.

The general trend over short term basis is to the downside, targeting 1.1865 as far as areas of 1.3550 areas remain intact.

Support: 1.3200, 1.3170, 1.3140, 1.3110, 1.3070
Resistance: 1.3250, 1.3295, 1.3320, 1.3370, 1.3390

Recommendation Based on the charts and explanations above our opinion is, selling the pair below 1.3200 targeting 1.3025 and stop loss above 1.3320 might be appropriate.

GBP

Cable has moved violently downwards showing the following negative technical factors that argue us to suggest more bearishness over intraday basis:

Achieving a daily closing below the clue level at 1.5785.

Forming a long black candlestick pattern.

Stochastic has overlapped negatively.

A break below 1.5760-1.5730 will accelerate declines and the pivotal resistance of 1.5925 should act as a ceiling for intraday bears.

The trading range for today is among key support at 1.5515 and key resistance at 1.5975.

The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 areas remain intact.

Support: 1.5730, 1.5680, 1.5630, 1.5585, 1.5555
Resistance: 1.5820, 1.5880, 1.5925, 1.5975, 1.6000

Recommendation Based on the charts and explanations above our opinion is, selling the pair below 1.5760 targeting 1.5515 and stop loss above 1.5925 might be appropriate.

JPY

The pair continued rallying bullishly and started to hit the psychological levels of 80.00 as seen on the provided four-hour chart. Stochastic reinforces resuming the bullishness over intraday basis; whilst RSI 14 may cause sharp fluctuation. The classical weekly studies proved its accuracy as the pair is gradually approaching our previous suggested technical target and we recommend reviewing the weekly report for more details about this classical structure and its targets. Finally, a break above 80.20 will encourage bulls to resume their northern trip.

The trading range for today is among key support at 78.60 and key resistance now at 81.25.

The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.

Support: 79.80, 79.55, 79.35, 79.15, 78.90
Resistance: 80.20, 80.50, 80.75, 81.00, 81.25

Recommendation Based on the charts and explanations above our opinion is, buying the pair around 79.75 targeting 81.20 and stop loss below 78.70 might be appropriate.

CHF

The lower line of Keltner channel succeeded in providing the pair with a good support yesterday as it prevented it from breaching one of the most important support levels at 0.9080 as seen on the provided daily chart. Stochastic is moving towards the oversold zones but we need to witness a convenient positive overlap since RVI 14 remains negative. A break above 0.9175 may assist the pair to beat 0.9300 later and 0.9030 is the floor for buyers. Anyway, we will avoid trading until the pair clears one of those two pivotal edges.

The trading range for today is among key support at 0.8965 and key resistance at 0.9310.

The general trend over short term basis is to the upside, targeting 0.9950 as far as areas of 0.8850 areas remain intact.

Support: 0.9105, 0.9080, 0.9030, 0.9000, 0.8985
Resistance: 0.9145, 0.9175, 0.9210, 0.9230, 0.9260

Recommendation Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move.

CAD

CAD spent yesterday’s session fluctuating around 0.9950, where trading continues to be slow within narrow ranges. We have been in this slow conditions since a while, where volatility has decreased dramatically and that is clear on the narrowing Bollinger bands Indicators, such narrow trading conditions are always followed by price explosion and major directional moves. Having said that; we will concentrate on the longer term outlook and neglect intraday moves, where some bullish price exhaustion sings have appeared on momentum indicators in the form of Bullish divergence, in addition to the falling wedge pattern shown on chart. Therefore, we anticipate a move to the upside within the coming sessions. Taking into consideration that 0.9890 should remain intact over daily closing basis.

The trading range for the day is expected among the key support at 0.9890 and the key resistance at 1.0070.

The short term trend is to the upside targeting 1.0650 with steady daily closing above 0.9900.

Support: 0.9930, 0.9890, 0.9870, 0.9850, 0.9820
Resistance: 0.9980, 1.0020, 1.0050, 1.0080, 1.0150

Recommendation Based on the charts and explanations above, we recommend buying the pair around 0.9925 targeting 1.0070 and 1.0150, stop loss daily closing below 0.9890.

AUD

The pair retraced to test the short term broken ascending support around 1.0700 before reversing to the downside again to acquire the awaited test of the main support area around 1.0630. Currently; price has rebounded again, while stochastic has crossed over positively and leaving oversold areas. In general, the ranging stance remains intact, however with a slight downside bias, and for now we will wait for more clear signs for the next possible move.

The trading range for the day is expected among the key support at 1.0600 and the key resistance at 1.0800.

The short-term trend is to the upside targeting 1.1079 so long as 1.0130 remains intact.

Support: 1.0630, 1.0585, 1.0525, 1.0500, 1.0450
Resistance: 1.0680, 1.0780, 1.0820, 1.0845, 1.0875

Recommendation Based on the charts and explanations above, we recommend staying aside awaiting confirmation.

NZD

The pair tested the awaited pivotal short term support at 0.8315 areas, to rebound once more. Over the short term, the pair has been bounded within the range among 0.8420 resistance and 0.8245 support, but the recent bearish wave has printed lower highs and lower lows; thus the intraday day trend is currently bearish unless we say stability back above the latest high at 0.8350. Therefore, we remain on the sidelines awaiting further developments.

The trading range for today is expected among the key support at 0.8245 and the key resistance at 0.8400

The short-term trend is to the upside, targeting 0.8840 as long 0.7600 remain intact.

Support: 0.8315, 0.8280, 0.8250, 0.8225, 0.8200
Resistance: 0.8350, 0.8372, 0.8400, 0.8420, 0.8450

Recommendation: Based on the charts and explanations above, we recommend staying aside awaiting further confirmations.