ICN.com | Jul 31, 2014 05:04AM ET
Yesterday's downside move pushed the pair to touch 50% correction at 1.3375 which is the significant intraday interval for today, and breaking it is required to extend the downside move.
By examening Linear Regression Indicators and MACD, we notice that negativity is still valid, but the overosld signals showing on Stochastic and RSI makes stability below 1.3445 required to keep the intraday bearish possibility.
The pair dropped today and is trading below 50% correction at 1.6940 showing on graph, as stabilizing below it is negative and favors testing 1.6880. Of note, breaking the latter represented in 61.8% correction is required to confirm extending the downside move, whereas failing to stabilize below it could lead to a bullish rebound.
MACD, AROON and Linear Regression Indicators are showing negativity forcing us to think that the downside move could extend, but intraday today, the pair should break 1.6880 as previously mentioned to cancel any possiblity of strong bullish corrections.
The USD/JPY broke sharply higher, taking the main descending resistance shown on the daily chart above, to retest the 103.00 key horizontal resistance, a break above that resistance should confirm further bullish bias, targeting 103.75 and 104.15. Holding above 102.20 should keep this bullish bias intact.
The USD/CHF maintains the bullish bias, breaking above 0.9080 resistance, after taking the major high at 0.9035 which confirmed the bullish breakout and the extension of the bullish wave. The next main target is at 0.9150 resistance level. Holding above 0.9080 should keep the intraday bullish bias intact.
The USD/CAD maintains the strong bullish breakout above 1.0815 resistance level, and the 200-days SMA, heading towards the 1.0940 next key resistance level. Holding above 1.0815 support level keeps this bullish bias intact, while a break above 1.0815 would confirm further gains.
The AUD/USD broke lower, taking the 50-days SMA and the neckline for the head and shoulders pattern shown on chart, that reverses the short term outlook for the pair to bearish, where the next main target is at 0.9220 level. Holding below the 50-days SMA keeps this bearish outlook intact.
The NZD/USD remains under downside pressures, holding below 008515 resistance level, and above the 200-days SMA, that keeps the bearish pressures intact, but we prefer to move to the sidelines for now, s price is oversold as indicated by the RSI momentum indicator, and the 200-days SMA could form a near term support.
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