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EUR/USD Trying To Form A Short-Term Base, GBP/USD Bounce Gains Momentum, USD/JPY Bearish Break Of Horizontal Support.

EUR/USD Trying to form a short-term base.

EUR/USD is trying to bounce. Hourly support can be found at 1.0570 (i11.04.2017 low). Stronger support can be found at 1.0494 (22/02/2017 low). Resistance can be located at a distant 1.0658 (07/07/2017 reaction high). Expected to see further short-term weakness.

In the longer term, the death cross late October indicated a further bearish bias. The pair has broken key support given at 1.0458 (16/03/2015 low). Key resistance holds at 1.1714 (24/08/2015 high). Expected to head towards parity.

GBP/USD Bounce gains momentum.

GBP/USD has bounced near the key support at 1.2334, suggesting a potential short-term base formation. The falling trendline resistances at 1.2500 has been breached. Hourly resistance can be located at 1.2506 and key resistance stands at1.2605 (27/03/2017 high). An hourly support can be found at 1.2405 (11/04/2017 low).

The long-term technical pattern is even more negative since the Brexit vote has paved the way for further decline. Long-term support given at 1.0520 (01/03/85) represents a decent target. Long-term resistance is given at 1.5018 (24/06/2015) and would indicate a long-term reversal in the negative trend. Yet, it is very unlikely at the moment.

USD/JPY Bearish break of horizontal support.

USD/JPY has broken to the downside out of the horizontal support at 110.11 confirming a bearish bias. Other key supports lie at a distant 106.04 (11/11/2016 low). An hourly resistance can be found at 110.11, while a key resistance stands at 112.20 (31/03/2017 high).

We favor a long-term bearish bias. Support is now given at 96.57 (10/08/2013 low). A gradual rise towards the major resistance at 135.15 (01/02/2002 high) seems absolutely unlikely. Expected to decline further support at 93.79 (13/06/2013 low).

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