Loonie Is Back Under Pressure; USD/CHF Extends Bullish Breakout
ICN.com | Jul 24, 2014 05:12AM ET
Despite the pair's weakness, the downside move is still ongoing and is currently moving towards the next technical target 1.3375 represented in 50% correction. The bearish possibility is valid supported by Linear Regression Indicators.
Stochastic and RSI are in oversold areas but are still moving deeply to the downside, as Stochastic is negative supporting our negative expectations today.
The pair broke 1.7035 levels accompanied by breaking the bullish support as showing on the secondary image. Stability below the referred to level is negative especially with negativity extending on both AROON and MACD. Linear Regression Indicator 34 is still moving to the downside strengthening our negative expectations.
The upside move requires stability again above 1.7080, and without that the negative possibility remains valid, but a break below 1.6995 is significant to confirm extending the downside move today.
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The USD/JPY retreats with the start of today’s session, however price remains above the key long term support at 101.20-100.75 area, which is the main level to watch in the near term, as the overall bullish trend remains intact so long as above that support. A break below 100.75 would signal a major bearish reversal.
The USD/CHF extends the bullish breakout, approaching the main and swing high and resistance level at 0.9036. A break above that resistance is necessary now to confirm the extension of the bullish wave and new upside targets at 0.9100 and higher. Holding above 0.8960 keeps the bullish bias intact and dominant.
The USD/CAD is back under pressure, after testing the main descending resistance for the overall bearish correctional wave as shown on the daily chart above. A break below 1.0705 intraday support would confirm more downside for today. Holding below 1.0815 keeps the bearish scenario favored.
The AUD/USD is breaking sharply higher, the price has taken the intraday resistance at 0.9425 and heading towards the next resistance at 0.9450. A break above the latter would confirm a retest of the recent swing high and resistance at 0.9503. Overall, we maintain our bullish bias as long as above the 50-days SMA.
The NZD/USD is moving higher with the start of today’s session, rebounding of the 50-days SMA support level, however, the price remains under key resistance levels starting at 0.8715, while RSI has been showing a major bearish divergence, and that favors the bearish scenario. Therefore, we maintain our bearish bias for today, and as long as below 0.8715.
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