GBP/USD Downside Move Remains Valid; EUR/USD Drop Below 88.6% Correction
ICN.com | Sep 09, 2014 06:39AM ET
The pair dropped below 88.6% correction favoring to test the previous bottom at 1.2744 and perhaps 113% correction at 1.2580. Stability below 1.2890 is very negative as it strengthens the possibility of extending negativity. Linear Regression Indicator 34 and 55 broke 76.4% correction as showing on graph, forcing us to currently ignore the oversold signals showing on momentum indicators.
Extending the downside move in the upcoming period depends on stability below 1.3020 - 1.3050, but we prefer to remain stable below 1.2960 intraday to strengthen the bearish possibility, and stabilizing below 1.2890 could activate the expectations.
The pair is approaching the awaited target 1.6000 and the downside move is still dominating the intraday trading, as we should monitor the pair when achieving the awaited target and breaking it represents extending the bearish correctional wave towards 1.5720. The downside move remains valid by stabilizing below 1.6285.
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The pair confirmed breaching 105.43 by closing the daily candle above it supporting the bullish extension on the short-term, easing the way towards 107.00 as the next main target. SMA 50 and 100 supports the suggested bullish wave that remains valid by stabilizing abov 105.10.
AUD/USD pair dropped and is almost retesting the previously breached resistance of the descending channel that is turning to support now at 0.9230; so as long as the pair is above this resistance, the possibility of extending the positive scenario suggested in our latest reports valid waiting to move towards 0.9500. A break below 0.9230 pushes the pair to test the most significant support 0.9190, as it will push the pair towards further bearishness and its next target would be 0.9095.
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