USD/CHF Collapses, Avoid Trading GBP/USD Until It Clears 1.5385
ICN.com | Oct 12, 2015 05:06AM ET
USD/JPY
The USD/JPY remains trapped within a tight range inside the triangle pattern as seen on the provided daily chart, but we believe that these price actions could be a preparation for a strong move.
As far as trading continues between 120.60 and 119.60, we will be on the sidelines.
We see inappropriate risk versus reward ratio and we will be patient until the USD/JPY pair breaches through one of those lines to take a position.
Technical indicators are showing signs of continuous hesitation, while prices are trapped between SMA20 and SMA50.
Support: 119-60-119.35-118.80
Resistance: 120.60-121.05-121.30
Direction: Bearish below 119.60-119.40 and bullish above 120.60, preferable 120.85.
USD/CHF
The USD/CHF has collapsed sharply last week, achieving a strong negative closing below 61.8% Fibonacci and below moving averages as seen on the provided daily chart.
These declines have assisted bears to form a long black candle on the weekly chart, but prices are close to 50% Fibonacci.
We need a sustained breakout below this level and preferably below 0.9585 to affirm the negativity appearing over most time frames.
Support: 0.9600-0.9530-0.9500
Resistance: 0.9685-0.9725-0.9780
Direction: Bearish below 0.9585
EUR/USD
Very weak movements are currently witnessed on EUR/USD along with weakness on ADX, while RSI stabilized below 70.00 levels, as the pair is close to 1.1385 resistance.
We prefer to be neutral to see what the pair will do around 1.1385 and 1.1420; noting that failure to clear 1.1420 will end the bullish move.
Support: 1.1320 – 1.1280 – 1.1240
Resistance: 1.1385 –1.1420 – 1.1460
Direction: Sideways, but bullish above 1.1420
GBP/USD
GBP/USD attempts to incline once again alongside bullish crossover on ADX. Trading above moving averages is a positive signal, encouraging us to be bullish, but we will avoid trading the pair until it clears 1.5385.
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A break above this level is required to prove the strength of the bullishness and to fix the sign on RSI, which could turn into a negative divergence.
On the downside, coming below 1.5315 will negate the bullish attempts.
Support: 1.5315 – 1.5270 – 1.5235
Resistance: 1.5385 – 1.5450 – 1.5540
Direction: We will avoid trading until the pair clears 1.5385
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