Yen Stabilizes Above 109.60; Pound Continues To Incline
ICN.com | May 26, 2016 05:51AM ET
GBP/USD
GBP/USD continues to incline, ignoring the overbought signs on momentum indicator, while ADX remains positive.
Moving averages are positive, while the pair trades around 1.4725. We need to affirm stability above 88.6% to target 1.4830.
On the downside, coming below 1.4600 will cause failure and we prefer to see the pair below 1.4675.
Support: 1.4725 – 1.4675 – 1.4600
Resistance: 1.4775 – 1.4830 – 1.4895
Direction: Bullish
EUR/USD
Euro attempted to incline after stabilizing above 61.8% Fibonacci at 1.1125. Trading below moving averages and below 1.1220 doesn’t affirm end of bearishness.
RSI shows resumption of downside actions with a trade below 50.00 levels. We remain neutral today.
Support: : 1.1125 – 1.1070 – 1.1055
Resistance: 1.1170 –1.1225 – 1.1285
Direction: Neutral
USD/CHF
Once again, the trading range on USD/CHF remains very tight, while we see how the pair continued to stabilize above 0.9860-0.9850 supports, neglecting the overbought sign on RSI14 over daily basis.
RSI shows the need for some kind of relief, while ADX shows decrease in bulls’ power.
Coming above 0.9980 will be bullish, but trading beneath 0.9850-0.9530 areas will be bearish.
For now, we remain neutral over intraday basis, waiting for an actionable setup to present itself in order to pinpoint the next big move.
Support: 0.9860-0.9805-0.9780
Resistance: 0.9945-0.9980-1.0000
Direction: Neutral
USD/JPY
USD/JPY has moved within a tight range yesterday, but it succeeded in stabilizing above 109.60 again despite re-testing 109.40 during the Asian session.
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Meanwhile, we see an attempt from SMA20 - green - to touch SMA50 - red - along with positivity on RSI and ADX indicators.
Therefore we will be bullish, but we need a sustained breakout above 110.30 to affirm the bullishness that remains clearer over weekly studies.
Support: 109.60-109.20-109.65
Resistance: 110.30-110.60-111.05
Direction: Bullish, but we will avoid trading until it takes out 110.30.
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