Forex Daily Analysis

EUR/USD

Daily chart on EUR shows the break of the latest inner uptrend line as well as the bear team scoring a point at the minor support level 1.5350 to open up the possiblity of a potential bear crown formation on the 4 hour chart. Due to the fact of the recent bounce, the bear team may likely look for a rest during the initial hours of the session, allowing the bull team to gain brief control of the currency, in which the initial test of resistance levels should be seen at the latest inner downtrend line and within the latest AB downswing A = 1.5580 B = 1.5283. This is why our weapons should be ready to pull the trigger and we will be waiting for the outcome of the current test.

GBP/USD

As we all know, the GBP continues to move trapped inside its weekly potential bear crown, trying to make it work out all through the past days. This morning the market opens up retracing strongly after last week's huge dip that aimed to score new lower lows below the 1.9350 levels, yet 1.9457 got in the way and is so far preventing the bear team from achieving this goal. The double bottom bounce that has formed at that minor 1.18 extension is so far the only bullish signal that sends the pound on a penetration of the latest inner downtrend line. This is why our preference will be to stand aside from the market for now.

USD/CHF

CHF scored it point at 1.0605 resistance on a mid term timeframe chart, however it has dipped after the penetration of the high, and now looks to retrace south allowing the bear team to regain control of the market by scoring a point at the previous support level 1.0430. It appears that the CHF may be looking forward to go for the outer uptrend line, which gives a lot of room for a further retrace on the upcoming days. The AB Upswing A = 1.0334 B = 1.0609 is still in place, but bulls have been unable to create their patterns in order to imply that there will be a response from that wave. This is why our preference will pay attention to the latest bear move seen in the charts.

USDJPY

As we covered in our analysis from last week, the JPY continues inside a major daily downswing at A = 108.60 B = 95.71, currently showing a retrace resistance at 105.86/.786, where the bear team has not been able to create any of their patterns, but we can see that the first two steps of a potential bear crown have appeared on the 2 hour chart. The yen has waken up creating a retrace after having scored the bearish support, which means the AB downswing at A = 105.49 B = 102.60 will be looking forward to create retrace resistances in order to hold the overall bear setup that we are witnessing in almost all timeframes.

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