Technical Analysis: AUD, CHF, JPY
ThinkMarkets | Jul 25, 2017 08:23AM ET
AUD/USD: Recent uptrend closes the gap until the 0.80 level yet due to the momentum loss the Aussie trades sideways at 0.7938.
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If the direction faces towards the positive side, the 1st resistance at 0.7968 awaits to be breached. Given the breakthrough happens, the 2nd and the 3rd resistances are to be approached at 0.7989 and 0.8012 levels respectively. Similar distance to the downside is yet to be covered if a bearish momentum increases hence the 1st support level awaits at 0.7875. Continuous downslide could also result in a breakthrough of the 2nd resistance at 0.7858 followed by the 3rd one at 0.7838.
USD/CHF: Lack of confidence in dollar has led it near the lowest levels since 2016. The spot price at 0.7938.
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Recent downtrend has resulted in a slight recovery over the past couple of days thus the 1st resistance has a potential to be approached at 0.9494. If the uptrend strengthens, the 2nd resistance at 0.9523 awaits followed by the 3rd one at 0.9552. Alternatively, the price could slide back to the recently touched 1st support at 0.9439 or slightly lower to the 2nd one at 0.9439. The 3rd one is set lower at 0.9402.
Yesterday’s bullish hammer signified a reversal trend in the USD/JPY
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The USD/JPY is reversing its trend today after the formation of a bullish hammer yesterday. The price is moving towards the first resistance, which is on 111.48, the July 20 low. If the price continues to march upwards, we expect the second resistance on 111.67, the 100 DMA and the last resistance on 112.08, the July 21 high. There is a chance that the chart might return to its downtrend, in that case, the first support will be on 110.83, the European low followed by the second support which is on 110.67, the 233 DMA and the July 24 low. The second support is a key support to look at, if the chart breaks through yesterday’s low, we might see a further dip to the July 14 low and the 76.4% Fibonacci level which is at 110.17.
Any breaks above Fibonacci level at 0.8991 could foster the bullish momentum in the EUR/GBP.
DESCIPTION
The EUR/GBP found its ground at the first support level, 0.8921, the July 24 low. The chart is looking to test the first resistance at 0.8991, the 61.8% Fibonacci of Oct – Dec and the July 21 high any time today. If the breakout succeeds, we could see a further push to the second resistance which is on 0.9025, the Nov 9 2016 high and the last resistance lies on 0.9049, the Nov 2 2016 high. If the chart is not able to retain its position above yesterday’s low (0.8921), the price could hit the second resistance, which is on 0.8899, the July 18 high. The last support is on 0.8867, the July 19 high.
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