Wednesday's Technical Analysis on EUR/USD, GBP/USD, USD/JPY
FX77 | Nov 18, 2015 03:31AM ET
Seen from American CPI data released yesterday, it is general good for American economy and confirm the interest rate hike in December. Meanwhile, the USD index goes up steadily, approaching the position at 100 with a previous high hit at 100.4020. Some investors believe that the surge of USD index considerably reflects the influence of interest rate hike to come. We cannot deny the idea that the moment of declaring interest rate hike is the time to end the bullish trend. However, we are firmly with the idea that the USD index will not stop at 100.4010 and interest rate hike is not only for once.
EUR/USD
The EUR/USD is in a bearish trend with price approaching the previous low area between 1.0520 and 1.0460. Meanwhile, a bottom deviation pattern has been shown at the 1-hour and 4-hour chart. With that being the case,put options should be gradually suspended in the following two days as a pullback may occur at any time. We are still mainly buyers of put options.
Support：1.0520/1.0461
Resistance：1.0661/1.0682
GBP/USD
Seen from the MACD, the price movement is not decided yet, in other words, it will still fluctuate around the range bound. Therefore, put options can be purchased during the morning session and should be suspended at 1.5221 for call options.
Support：1.5190/1.5172
Resistance：1.5221/1.5242
USD/JPY
The USD/JPY is approaching the previous high reading at 123.60, making it difficult to determine its direction. It is supposed to bounce down from technical analysis, but with strong bullish sentiment, investors can buy put options at 133.60.
Support：123.19/123.14
Resistance：123.60/124.00
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