Daily Technical Report : December 27, 2013
ICN.com | Dec 27, 2013 04:15AM ET
The EURUSD pair has inclined during the Asian session trading above the middle line of Bollinger bands-valued at 1.3698- once again. This incline is gradually taking RSI 14 towards overbought regions and that warns of a reversal. The sudden contrarian between momentum indicator and trend indicators in addition to trading above 1.3715 forces us to close the short positions we took this week and standing aside until we witness the weekly closing. Of note, coming back below 1.3700 may bring the bearish picture back into focus.
GBP/USD
The GBPUSD is gradually approaching the previous detected upper line of the sideways range, which intersects with the upper line of Bollinger bands indicator as seen on the provided daily chart. Risk versus reward ratio becomes too high as RSI 14 also is taken towards the value of 70.00. Henceforth, we remain neutral over intraday basis; noting that buying is preferred above the high recorded on December 18 at 1.6485.
USD/JPY
Finally, the USDJPY has visited the psychological level of 105.00, which represents the soft target of the long positions we recommended on Monday on our weekly report. Facing this psychological level in addition to signs of weakness appearing over RSI 14 argues us to stop chasing the bullish trend over intraday basis awaiting for a good entry point to re-enter the market once again.
USD/CHF
The USDCHF pair has managed to move lower as RSI 14 has been resisted in the 50.00 regions as seen on the provided daily chart. Although bulls are definitely protected by the 0.8850 support but the declines seen in the Asian sessions warns of weak momentum over intraday basis, while traders couldn’t take the pair towards the psychological level of 0.9000 this week. Consequently, we will be neutral today until an actionable setup presents itself to pinpoint the upcoming big move.
USD/CAD
The pair is fluctuating within a sideways range since yesterday while Stochastic offers positive signals now supporting the breach of 1.0660. In general, our bullish expectations remain intact over intraday basis targeting 1.0830 areas and require stability above 1.0545.
AUD/USD
The pair remains above he main support and major low at 0.8845, and that keeps the potential for an upside correctional move intact, however we prefer to see further confirmation over the lower time intervals to suggest a move higher.
NZD/USD
The pair maintains the sideways bias, bouncing of 0.8150 horizontal support level, and the 200-days SMA, accordingly, we may see some further upside bias from this support area within the context of the overall sideways market.
GBP/JPY
The pair resumes the positive trading approaching the ascending channel broken support shown on graph –now resistance- at 173.20. Breaching this level is positive and will support the extension of the upside move. In general, we will hold onto our positive expectations over intraday and short term basis supported by MA 50 and require stability above 171.15 and 170.00.
EUR/JPY
The pair continues to trade positively after confirming the breach of 141.80 to support the upside move expected over intraday and short term basis. The main upside target is at 145.00 and a breach of which with a daily closing will extend gains toward 148.50. Stability above 141.80 is required to support positivity.
EUR/GBP
The EURGBP is fluctuating below 0.8390-0.8400 resistance level, where so long as price remains below this resistance the bearish intraday bias remains likely, while a break above this resistance may extend the upside towards the descending resistance of the overall bearish move.
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