USD/CHF Extends Bullish Breakout; Loonie Under Pressure
ICN.com | Jul 23, 2014 05:18AM ET
The pair dropped and achieved the first daily closing since February 2014 below 1.3520. A break below the referred to level according to Fibonacci rules is negative, as it favors extending the downside move to test 50% correction at 1.3375.
Linear Regression Indicators crossed over negatively and MACD is still negative supporting the possibility of extending the downside move that started from the top 1.3996 that broke the main upside move earlier. Only breaching 1.3555 makes us reconsider the negative expectations. Today, the pair should remain below 1.3520 to strengthen the bearish possibility.
The pair is trading for the second trading session below 1.7080 levels represented in 127.2% correction, as stabilizing below this level indicates the possibility of facing 1.7035 at 113% correction, whereas the downside move is favored today.
AROON, MACD and Linear Regression Indicator 34 are negative and the downside move depends on the pair's ability to break 1.7035 followed by breaking 1.6995. Generally, trading below 1.7185 is negative, but stabilizing below 1.7105 today is required to strengthen the downside movel.
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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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