Daily FX Technical Report: April 6, 2016
ICN.com | Apr 06, 2016 05:18AM ET
USD/JPY
The USD/JPY has adopted a favorable reaction to the negative signs appearing over daily studies, and that is why it closed below the key level of 110.70.
RSI is now very close to oversold areas, and that may cause some kind of fluctuation, but we don’t think it will change the current bearish direction.
A break below yesterday’s low placed in the 109.90 regions will accelerate the bearish wave. ADX supports our outlook.
Support: 110.00-109.80-109.35
Resistance: 110.70-111.15-111.65
Direction: Bearish
USD/CHF
Areas of 0.9570-0.9575 have protected the pair from achieving stronger bearish actions, as this levels meets the Fibonacci level of 88.6%, as seen on the provided daily chart.
We see also how RSI is trying to get out from oversold regions, but ADX remains negative.
Therefore, we will stay aside, as trading range is very tight now and we need additional confirmations to follow through.
A break below 0.9540 will be a negative signal for intraday traders.
Support: 0.9550-0.9500-0.9460
Resistance: 0.9600-0.9690-0.9720
Direction: Neutral
EUR/USD
Euro showed bearish tendencies below 1.1375 along with negativity increase on ADX and RSI, which is close to 70.00 levels.
Trading above 1.1315 and the aforementioned factors force us to stay aside, and we will close the positions we took yesterday in the entry point to see how the pair will behave between 1.1310 and 1.1375.
Support: : 1.1310 – 1.1280 – 1.1255
Resistance: 1.1375 –1.1450 – 1.1525
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Direction: Neutral
GBP/USD
ADX readings are negative, while RSI approaches 30.00 levels, but it remains negative along with moving below 78.6% Fibonacci at 1.4145.
Trading below 1.4145 is negative and that may bring a re-test of 1.4100 where 88.6% exists.
Targets reside in the 1.40 followed by 1.3945 regions, and we are bearish as far as 1.4260 and 1.4210 hold.
Support: 1.4100 – 1.4055 – 1.4000
Resistance: 1.4145 – 1.4210 – 1.4260
Direction: Bearish
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