Daily Technical Report : May 09, 2014
ICN.com | May 09, 2014 05:14AM ET
The pair dropped yesterday after touching levels close to the psychological barrier 1.4000. The downside move formed a long bearish candle which is negative. Stochastic tends to be negative and RSI broke line 50 indicating the possibility of extending bearishness, and confirming that requires breaking 1.3800 followed by breaking 1.3780.
Generally, trading below 1.3905 is negative and stabilizing below it keeps the bearish possibility valid. A break below 1.3780 is significant to confirm extending bearishness by breaking the bullish key support showing on graph.
The pair dropped yesterday but remained limited around 1.6920, above 1.687 and Linear Regression Indicator 55. Stability above 1.6920 levels is positive, and breaking 1.6870 fails the intraday upside move.
Hence, we hold on to our positive expectations, but if the pair broke 1.6870 we will move to the sidelines. Currently, AROON and MACD is extending the upside move despite the slight wekaness. However, Linear Regression Indicators are positive.
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USDJPY ended yesterday’s session lower, and remains under downside pressure with the start of today’s session, as price is retesting the main rising trend line shown on the daily chart above, in addition to the horizontal support at 101.30 area. However, as long as that support area is holding, a bullish rebound remains likely.
USDCHF rebounded sharply, after testing 0.8700 major support level and swing low, forming a major bullish candle, and hinting a potential move higher within the upcoming session. A retest of 0.8860 and 0.8950 levels looks more likely now.
USDCAD remains under pressure, as price resumed the main correctional wave that started from 1.1275 high, by breaking below 1.0855 support. A retest of areas around 1.0750 near the 200-days SMA is likely now, while holding below 1.0900 keeps the bearish bias favored over intraday basis.
The AUDUSD is retracing slightly following yesterday’s gains, where price hit 0.9370 level before founding resistance, however an pullback remains a buying opportunity as price remains above key support level within the bullish trend that started from 0.8850 bottom. Next main target at 0.9450 key high.
NZDUSD extended the bearish correction, however the price is showing some tentative signs of stability as price formed a long-legged doji candle hinting possible rebound. In any case, we still need further confirmation and accordingly, we remain on the sidelines for now.
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