USD/JPY Extends To Upside; USD/CHF Resumes Bullish Breakout
ICN.com | Jul 30, 2014 06:03AM ET
Negative pressures are still ongoing within the downside move that targets 1.3375 represented in 50% correction showing on graph. A break below 38.2% correction at 1.3525 forces us to keep our negative expectations, while technical indicators are showing the possibility of extending bearishness.
Stochastic is currently showing intraday oversold signals without any positivity. Despite that RSI 14 is trading in oversold areas, this area is strong. Over intraday basis, stabilizing below 1.3480 is required to keep the negative outlook.
The pair is trading close to 50% correction at 1.6940 which is the significant intraday interval today. In fact, stabilizing below the latter is significant keeping the bearish possibility valid intraday today, whereas breaking it could push the pair to the downside towards 1.6880 at 61.8% correction.
By examening AROON and MACD Indicators, we notice negativity that forces us to think that the referred to level 1.6940 is available. Linear Regression Indicators are negative and Linear Regression Indicator 34 confirmed breaking the bullish support, supporting the possibility of extending the downside move. Only a break above 1.7010 worries us today in regards to the negative expectations.
Get The News You Want
The USD/JPY extends the upside, breaking above the main 200-days SMA, and approaching the main descending resistance for the overall correctional wave, which is the main next upside target. Holding above 101.80 keeps the strong bullish bias intact.
The USD/CHF resumes the strong bullish breakout above 0.9035 resistance level, the breakout above that resistance clears the way for more gains, eying a retest of the major horizontal resistance at 0.9150 areas, while holding above 0.9035 keeps the strong bullish bias dominant.
The USD/CAD resumes the strong bullish bias, breaking above 1.0815 horizontal resistance, and that follows an earlier breakout above the main descending resistance for the correctional wave. Accordingly, the bullish bias may extend further, targeting initially 1.0940 next resistance level.
The AUD/USD remains under downside pressures after testing 0.9460 resistance level, approaching the 50-days SMA as shown on the daily chart above. The overall bullish trend remains intact, and the bullish scenario remains favored as long as price is stable above the 50-days SMA. Only a break below 0.9325 would signal a bearish reversal.
The NZD/USD remains under downside pressure, breaking the 50-days SMA and extends the downside, to break below 0.8815 horizontal support level. The bearish scenario continues to be favored, although we might see some support around 0.8800, however, we will continue to short upside pullbacks.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.