Daily Technical Report: October 7, 2013
ICN.com | Oct 07, 2013 05:08AM ET
EUR/USD - Weekly Report
With the beginning of this week, we notice the negative divergence on the MACD accompanied by trading below 1.3605 as shown on four-hour graph. Therefore, we expect a bearish correctional wave. The downside wave relies on breaking 1.3505 levels represented in 78.6% correction, as it might extend bearishness.
The trading range for this week is among the key support at 1.3345 and key resistance at 1.3715.
The general trend over short term basis is sideways with daily closing between 1.2775 and 1.3600.
GBP/USD
RSI offers negative divergence accompanied by the breakout below the short-term ascending support in addition to the formation of a long bearish candle. All these circumstances force us to expect the pair to extend the downside move this week, but breaking 1.6010 is significant to support this outlook. Breaching 1.6170 levels and stabilizing above it might fail the negative outlook for a bearish correction possibility.
The trading range for this week is among the key support at 1.5760 and key resistance at 1.6340.
The general trend over short term basis is to the upside as far as areas of 1.5280 remains intact targeting 1.6540.
USD/JPY
The downside move extended last week and the pair is currently stable below 61.8% correction at 97.65. Stability below this level might trigger an attempt to break 78.6% correction residing at 96.05. Linear Regression Indicators and Stochastic support the negative possibility. Over weekly basis, breaching 98.20 could trigger a new bullish wave, but we prefer to see the pair stable below 97.65 to keep the negative possibility.
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The trading range for this week is among key support at 95.45 and key resistance at 98.80.
The general trend over short term basis is to the downside as far as areas of 103.50 remain intact targeting 93.50.
USD/CHF
The pair moved to the upside last Friday and failed to stabilize below the psychological barrier 0.9000. The upside move remains limited till now below 0.9065 represented in 127.2% Fibonacci, and Linear Regression Indicators are still negative. Therefore, our weekly outlook is neutral for now waiting for new confirmations.
The trading range for this week is among key support at 0.8840 and key resistance at 0.9225.
The general trend over short term basis is to the downside targeting 0.8860 as far as 0.9775 remains intact.
USD/CAD
The trading range for this week is between the key support at 1.0200 and the key resistance at 1.0500.
The general trend over short term basis is to the upside with steady daily closing above 1.0100 targeting 1.0775.
AUD/USD
The price is swinging above the broken resistance area around 0.9300, as shown on the daily chart above, the breakout above 0.9300 has completed a short term bottom, and favors the bullish scenario within the upcoming period(weeks). However, over intraday basis, the pair has broken below 0.9420 intraday support, and a minor ascending trend line over the hourly chart, accordingly, we look for further downside pressure during the day, but maintain our overall bullish view.
NZD/USD
The pair failed for the third time to break and hold above 0.8340 resistance level, pushing back lower, a break back below 0.8275 now will signal further intraday downside bias. However, over short term and the week, the bullish scenario remains favored so long as 0.8160 is support.
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