FX Techs: Levels To Watch
ICN.com | Apr 21, 2014 05:38AM ET
The pair traded in a slight bearish bias and stabilized between Fibonacci levels 23.6% and 38.2%, as it needs to stabilize again above 1.3850 to activate the bullish scenario again while Stochastic is moving close to oversold areas to supprt extending the upside move. Our awaited targets resides initially at 1.3905 levels and the pair is attempting to record a new top above it, while achieving it requires stability above 1.3780.
The pair maintained stability above 88.6% correction at 1.6780 showing on graph in order to keep the upside move valid over intraday basis, supported by Linear Regression Indicators lines in addition to the upside move showing on MACD. Therefore, the pair still has to move towards our targets that starts by breaching 1.6920 levels again to extend the bullish wave towards 1.7185. A break below 1.6780 might push the pair towards 1.6640 levels before moving back to the upside.
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The sideways market is clear on the four-hour chart above, as price hit the bottom of the sideways range at 101.50 areas before bouncing back higher. The USD/JPY is retested 102.70 resistance level and our earlier targeted level, where price forms a long legged doji candle, hinting a potential intraday setback. However, over the week, the sideways to bullish bias remains favored. Therefore, we will short the pair over intraday basis only.
USD/CHF extended the upside towards the 50-days SMA, where price may find intraday reisstance at that level around 0.8850, and thus an intraday pullback is likely, however, we expect the price to remain supported the in near term and look to long price from lower level for the week.
USD/CAD maintains the bullish bias, in attempt to retest the broken rising trend line and the 50-days SMA, where holding above 1.0950 keeps our bullish bias although we might see some resistance near the 50-days SMA around 1.1050 level, however the overall bullish rebound remains in play.
The AUD/USD is consolidating within the bearish correctional wave inside the minor falling channel shown on the four-hour chart above, where we continue to expect further downside targeting 0.9300 level so long as the channel is intact. A break back above the channel’s resistance would signal a potential resumption of the overall bullish trend. For now, the bearish correctional bias remains favored.
Following the strong selloff and major downside pressure the NZD/USD is attempting to stabilize with the start of the week, however, we still see further downside for a potential retest of 0.8510 support area, where the key intraday resistance to monitor is at 0.8625-0.8650 areas.
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