Daily Technical Report : August 01, 2014
ICN.com | Aug 01, 2014 05:33AM ET
The pair stabilized around 1.3375 at 50% correction that will be the intraday interval for today showing on graph. While waiting for the Jobs Report today, we notice that Linear Regression Indicators are still negative and MACD tends to be negative. But momentum indicatorsare showing some positivity that requires breaking 1.3375 and stabilizing below it to keep the bearish possibility intraday.
Only a break above 1.3455 fails the bearish extension and triggers a bullish correction before moving back to the downside. On the other hand, breaking 1.3375 pushes the pair to the downside towards 1.3230.
Yesterday's daily candle closed below 61.8% correction as showing on graph, and stability below it at 1.6880 indicates the possibility of extending the downside move today to test 1.6795 and perhaps 1.6745. Linear Regression Indicators are negative and AROON is showing the bearish strength. MACD is showing a bearish bias in its signal lines and histogram.
Stability below 1.6940 is the main catalyst to keeping the possibility of a downside move valid, but we prefer to remain below 1.6880 to strengthen the bearish possibility and halt the bullish corrections.
Get The News You Want
USDJPY broke sharply higher, taking the main descending resistance shown on the daily chart above, to retest the 103.00 key horizontal resistance, currently pushing towards that resistance, where a break above that resistance should confirm further bullish bias, targeting 103.75 and 104.15. Holding above 102.20 should keep this bullish bias intact.
USDCHF pulled back slightly yesterday, to retest the broken resistance at 0.9080-0.9075, however price maintains the bullish bias, holding above 0.9080 resistance, after taking the major high at 0.9035 which confirmed the bullish breakout and the extension of the bullish wave. The next main target is at 0.9150 resistance level. Holding above 0.9080 should keep the intraday bullish bias intact.
USDCAD pulled back slightly yesterday, however maintains the strong bullish breakout above 1.0815 resistance level, and the 200-days SMA, heading towards the 1.0940 next key resistance level. Holding above 1.0815 support level keeps this bullish bias intact, while a break above 1.0815 would confirm further gains.
AUDUSD remains under significant bearish pressure, after breaking the key neckline for a head and shoulders top pattern, where holding below that broken support confirms more downside, where the pattern has a target near 0.9200 level just above the 200-days SMA. Accordingly, holding below the 50-days SMA keeps our bearish outlook intact.
NZDUSD resumes the bearish bias, holding below 0.8515 resistance level, but also remains above a key support area at the 200-days SMA and the rising trend line for the overall bullish trend, therefore, we prefer to maintain our neutral stance for now, awaiting a clear breakout of this area.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.