EUR Declines; GBP Stabilizes Above 1.4605
ICN.com | May 25, 2016 06:45AM ET
USD/CHF
Although the trading range on USD/CHF remains tight this week, we see how the pair continued to stabilize above 0.9860-0.9850 supports, neglecting the oversold sign on RSI14 over daily basis.
Meanwhile, ADX started to show some kind of weakness over daily studies, but the bigger time frames remain bullish, and that contradicts with the aforementioned signals.
Only a break below 0.9850-0.9530 areas will be bearish, while coming above 0.9980 will be bullish, and those are the levels we will watch out while we are neutral.
Support: 0.9860-0.9805-0.9780
Resistance: 0.9945-0.9980-1.0000
Direction: Neutral
EUR/USD
Following the declines on EUR/USD, we can see how the pair approaches 61.8% Fibonacci at 1.1125, which was our previous target.
Yesterday’s bearish candle in addition to negativity on ADX and RSI along with trading below moving averages are negative signals.
Hence, we will be bearish today, aiming to test 1.1070 zones.
Support: : 1.1125 – 1.1070 – 1.1055
Resistance: 1.1170 –1.1225 – 1.1285
Direction: Bearish, but we will avoid trading the pair
GBP/USD
GBP/USD started to stabilize above 1.4605, which is a positive signal along with a more positive one on ADX.
We see the pair stabilizing above moving averages, which makes trading above 1.4555 good for bulls.
On the upside, a break above 1.4670-1.4680 will extend the bullishness, but failing to breach this level will make us close all open positions.
Support: 1.4605 – 1.4555 – 1.4500
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Resistance: 1.4680 – 1.4725 – 1.4775
Direction: Bullish
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