Wednesday's FX Technicals: December 17, 2014
ICN.com | Dec 17, 2014 05:14AM ET
EUR/USD - European Session
EUR/USD pair edged lower and is trading around 1.2490, as stability above it confirms the previously suggested positive expectations to retest 1.2565. Breaching 1.2565 and stabilizing above it favors extending the upside move to target 1.2635 and 1.2740, while trading above 1.2500 is positive and support the bullish expectations. A break below 1.2400 fails the expectations and brings the pair back to trading within the descending channel showing on graph.
The pair continues fluctuating around the resistance of the sideways range showing on graph at 1.5730, as we still wait to confirm the next move by breaching this resistance or breaking the support at 1.5585, which forces us to keep monitoring the price at these levels waiting for a confirmation signal. Of note, breaching the resistance leads to a new bullish correction targeting 1.5965, while breaking the support brings the pair to the downside move again, targeting next 1.5425.
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The pair edged higher after moving to the downside, and is trading within the ascending channel again. Breaching 117.90 and stabilizing above it extends the upside move to target 119.05 and 120.70. Generally, trading within the channel showing on graph is positive and suppport the suggested positive expectations. Breaking 116.30 and stabilizing below it triggers a bearish wave that target 115.20 - 114.90.
The pair inched higher and is attempting to breach 0.9615. Despite that, we keep our negative expectations as the pair is still trading below 0.9685, and stabilizing below it keeps the downside move valid to target 0.9565 again. Breaking 0.9565 and stabilizing below it favors a new bearish wave that targets 0.9520 and 0.9480, while a break above 0.9725 threatens to fail the suggested expectations.
The USD/CAD pair failed to confirm the top despite touching the key resistance levels of the ascending channel, and approaching Fibonacci level 161.8% as showing on graph above. 1.1675 - 1.1685 are important resistances that could trigger a bearish correctional move in the coming period, but technical indicators are still positive and didn't show any signals of divergances.
Hence, we bet on a bearish correction now, but a break above 1.1730 triggers a new bullish wave and fails the possibility of the referred to correction.
The pair continued moving to the downside and broke 0.8200, as stabilizing below it extends the downside move targeting 0.8140 and 0.8100 and 0.8055, and trading below 0.8200 is negative and support the bearish expectations at the time being. A break above 0.8305 threatens to fail the mentioned expectations.
The pair is still trading within the sideways range and above 0.7700 levels, which represent the bottom of the range. Linear Regression Indicators are trading negatively and RSI is moving to the downside, which makes breaking 0.7665 negative and could push the pair further to the downside.
Meanwhile, trading above 0.7700 strengthens the possibility of new bullish attempts intraday today within normal trading in the sideways range. Despite that, we wait to breach 0.7800 before deciding to buy the pair. Therefore, trading between 0.7665 and 0.7800 takes us to the sidelines intraday today.
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