USD/JPY Breaks Bullish Target
ICN.com | Oct 01, 2014 05:17AM ET
EURUSD pair touched 113% correction at 1.2580 yesterday before rebounding slightly to the upside. But the rebound wasn't enough to change our negative expectations, whereas stability below the previous bottoms 1.2744 and trading below 1.2661 keeps the possibility of extending negativity. Due to the oversold signals showing on RSI, the pair should break 1.2580 levels to confirm extending negativity without the need for bullish corrections.
Linear Regression Indicators are negative and forms resistances which make us expect further bearishness today.
The negative impact of the British economy data issued yesterday is still ongoing, whereas the pair is trading now below 1.6200 to support extending the expected downside move on the short term and our next target resides at 1.6000. A break below 1.6155 helps achieving the awaited targets, while the downside move remains valid unless the pair breaches 1.6285.
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The pair managed to break above the bullish target 110.00 mentioned in a previous report. The pair found support by stabilizing above 109.50, and trading above it is positive supporting the bullish expectations, on the other hand, this strengthens our positive expectations by extending the upside move if the pair breached 110.00 to target 110.50 and 111.00, while a break below 109.00 threatens the suggested expectations.
The pair is trading around 0.9555 and stabilizing above it favors attempting to breach 0.9600 levels again, as a break above the latter and stabilizing above it favors extending bullishness targeting 0.9700, while breaking 0.9500 threatens the suggested expectations.
The pair inched higher yesterday after the neagtive economic data from Canada and stabilized above 88.6% correction at 1.1205. On the one hour graph, we notice a negative signal on both RSI and MACD, which could indicate the pair's need for a bearish correction and the pair could drop to test the key support of the ascending channel that dominated the pair in the past period.
After the bearish correction, the upside move could return and the positive possibility will remain valid by stabilizing above 1.1120. Therefore, we will wait for a buying level close to the key support of the ascending channel at 1.1170 to take enter the market, taking into consideration the importance of not breaking 1.1120 to strengthen the positive possibility.
The pair broke 0.8690 supporting extending the bearish wave that is trading regularly within the descending channel showing on graph above, whereas the pair could move towards 0.8585 now. Therefore, the downside move remains valid unless the pair breaches 0.8740 that could push it to visit 0.8885 before any new attempt to the downside.
NZDUSD pair is still trading below 0.7800 strengthening our negative expectations, whereas trading below the mentioned levels is negative supporting the downside move to target 0.7730 and 0.7700, while a break above 0.7860 threatens the suggested expectations.
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