Sample Category Title

Daily Pivots: (S1) 0.7301; (P) 0.7329; (R1) 0.7358; More...

AUD/USD's fall is still in progress and intraday bias remains on the downside. Current decline from 0.8006 is correcting the whole up trend from 0.5506. Next target is 161.8% projection of 0.8006 to 0.7530 from 0.7890 at 0.7120. On the upside, break of 0.7356 minor resistance will turn intraday bias neutral and bring consolidations first, before staging another decline.

In the bigger picture, rise from 0.5506 medium term bottom could have completed at 0.8006, after failing 0.8135 key resistance. Correction from there could target 0.6991 cluster support (38.2% retracement of 0.5506 to 0.8006 at 0.7051). We'd look for strong support from there to bring rebound. However, sustained break of this level would argue that the whole medium term has indeed reversed.

Daily Pivots: (S1) 109.47; (P) 109.72; (R1) 110.10; More...

Intraday bias in USD/JPY is turned neutral as it recovers after hitting 109.05. But further fall is expected as long as 110.33 resistance intact. On the downside, break of 109.05 will target 38.2% retracement of 102.58 to 111.65 at 108.18. However, on the upside, break of 110.33 will argue that the choppy fall from 111.65 has completed, and turn bias back to the upside for retesting this high.

In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. Sustained trading below 55 day EMA would argue that the pattern from 101.18 is starting another falling leg, that could head back to 102.58 support and below. For now, outlook won't turn bullish as long as 111.71 resistance holds, even in case of strong rebound.

Daily Pivots: (S1) 0.9180; (P) 0.9206; (R1) 0.9240; More....

Intraday bias in USD/CHF remains neutral at this point and outlook is unchanged. On the downside, break of 0.9116 support will affirm the case that rebound from 0.8925 has completed at 0.9273. Deeper fall would then be seen back to retest 0.8925 low. On the upside, however, break of 0.9273 and sustained trading above 61.8% retracement of 0.9471 to 0.8925 at 0.9262 will target 0.9471 resistance next.

In the bigger picture, medium term outlook is currently neutral with focus on 0.9471 resistance. Sustained break there will indicate completion of whole decline from 1.0342 (2016 high). Medium term outlook will be turned bullish for a test on 1.0342 high. But, rejection by 0.9471 again will revive bearishness for another fall through 0.8756 low.

Daily Pivots: (S1) 1.1758; (P) 1.1780; (R1) 1.1805; More...

Intraday bias in EUR/USD stays on the downside at this point. Decline from 1.2265, as the third leg of correction from 1.2348, would target 1.1703 support. On the upside, though, break of 1.1880 will indicate short term bottoming and turn bias back to the upside for stronger rebound to 1.1974 resistance first.

In the bigger picture, rise from 1.0635 is seen as the third leg of the pattern from 1.0339 (2017 low). Further rally could be seen to cluster resistance at 1.2555 next, (38.2% retracement of 1.6039 to 1.0339 at 1.2516). This will remain the favored case as long as 1.1602 support holds. Reaction from 1.2555 should reveal underlying long term momentum in the pair. However sustained break of 1.1602 will argue that the rise from 1.0635 is over, and turn medium term outlook bearish again.

EUR/USD

Current level - 1.1770

The depreciation of the single European currency against the U.S. dollar continues, as at the time of writing, bears are testing the support zone at around 1.1773. A successful breach of the mentioned level could deepen the sell-off and lead to a test of the next support level at 1.1700, followed by the support area at 1.1600. The first significant resistance in the upward direction is the level at around 1.1880. There is no planned economic news for today that would affect the performance of the currency pair.

USD/JPY

Current level - 109.87

The depreciation of the U.S. dollar against the Japanese yen was limited to just below the support level at 109.53, followed by a correction. It is possible to witness a consolidation above the 109.72 resistance level and a possible appreciation, which the bears will most likely be able to limit below the resistance level at 110.30. According to the higher time frames, the main support is the level of 109.00.

GBP/USD

Current level - 1.3605

The sell-off from the past few days has gained momentum as the pound continues to lose ground against the U.S. dollar from the beginning of today's trading session. The breach of the 1.3665 support zone strengthened the bearish sentiment and the most probable scenario for today is another attack on the support at 1.3570. A successful breach of the mentioned level could pave the way towards the first support zone from the higher time frames at around 1.3500.

The 55– hour simple moving average pressured the EUR/USD currency pair lower during Tuesday's trading session. Consequently, the Eurozone single currency declined by 45 pips or 0.38% against the US Dollar on Tuesday.

All things being equal, the exchange rate could continue to decline in a descending channel pattern during the following trading session. The potential target for sellers will be near the 1.1750 area.

However, the weekly support level at 1.1758 could still provide support for the currency exchange rate within this session.

On Tuesday, the British Pound edged lower by 93 pips or 0.68% against the US Dollar. The currency pair was pressured by the 55-, 100– and 200– hour SMAs during yesterday's trading session.

The exchange rate could continue to decline within the following trading session. A breakout through the lower boundary of a descending channel pattern could occur.

However, if the channel pattern holds, bullish traders could pressure the GBP/USD currency exchange rate higher within this session.

On Tuesday, the US Dollar surged by 55 pips or 0.50% against the Japanese Yen. The currency pair breached the 55– and 100– hour SMAs during Tuesday's trading session.

Currently, the exchange rate is trading near the upper line of a descending channel pattern and could be set for a breakout.

If the breakout occurs, a surge towards the 110.40 area could be expected within this session.

However, if the channel pattern holds, bears might drive the currency exchange rate lower today.

On Tuesday, Gold declined by 185 pips or 1.02% against the US Dollar. The commodity breached the 55-, 100– and 200– hour SMAs during Tuesday's trading session.

Bearish traders are likely to continue to drive the yellow metal's price lower during the following trading session. The potential target for sellers will be near the 1795.00 area.

However, the support line near the 1800.00 mark could provide support for the XAU/USD exchange rate in the shorter term.

Technical analysis

The EURUSD has large amount of bullish price divergence on the MACD indicator making it very risky to sell the pair around current trading level.

According to the Momentum indicator the EURUSD pair has also formed bullish divergence, meaning that upside momentum is actually rising while the price is falling.

What the possible outcomes are

In our most likely scenario, the EURUSD pair will eventually rise back towards the 1.1970 level in order for both the MACD and Momentum divergence to be reversed.

Alternatively, the EURUSD could follow the broader market lower and fall towards the 1.1700 level, and possibly much lower if the US dollar index continues to push to the upside.

Key levels

Support 1.1700 1.1600

Resistance 1.1845 1.1970