Technical Analysis for Major Currencies

EURO

The Euro versus Dollar pair slumped yesterday to breach the key support for the bullish channel with the possibility of forming a bearish technical pattern with a neckline at 1.4685 as seen in the above image. Momentum indicators show the pair being oversold which may result in an upside correction to retest the broken level at 1.4755 before reversing back to the downside for today targeting 1.4465. A four hour close below 1.4755 is crucial for the decline to continue.

The trading range for today is among the key support at 1.4465 and the key resistance at 1.5000

The general trend is to the upside as far as 1.4135 remains intact with targets at 1.6000

Support: 1.4610, 1.4565, 1.4515, 1.4465, 1.4410
Resistance: 1.4685, 1.4755, 1.4790, 1.4845, 1.4875

Recommendation: Based on the charts and explanations above, our opinion is selling the pair from 1.4755 to 1.4625 and stop loss above 1.4845 might be appropriate.

GBP

The Cable declined yesterday after confirming the breach of the key support at 1.6190, altering the trend to the downside. Momentum indicators have entered an oversold area making us expect an upside correction to reach the broken level in an attempt to retest it before reversing back to the downside on the short and medium terms with targets at 1.5800 and 1.5400 respectively. A daily close below 1.6190 is needed for the decline to occur.

The trading range for today is among the key support at 1.5555 and the key resistance at 1.6590

The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7100

Support: 1.5895, 1.5800, 1.5775, 1.5700, 1.5615
Resistance: 1.6040, 1.6125, 1.6190, 1.6265, 1.6300

Recommendation: Based on the charts and explanations above, our opinion is selling the pair with the breach of 1.6040 to 1.6190 and stop loss above 1.5965 might be appropriate

JPY

The USD/JPY pair surged to the upside towards 91.60 before gradually reversing to the downside to near the pivot support at 90.35, the neckline for a bearish technical pattern as seen in the above image. This pattern makes us expect a decline on the intraday basis targeting 88.00 as far as 91.75 is intact.

The trading range for today is among the key support at 88.00 and the key resistance at 94.70

The general trend is to the downside as far as 102.60 remains intact with targets at 84.95 and 82.60

Support: 90.35, 89.80, 89.35, 88.65, 88.00
Resistance: 91.25, 91.50, 91.75, 92.10, 92.55

Recommendation: Based on the charts and explanations above, our opinion is selling the pair with the breach of 90.35 to 89.65 and stop loss above 90.95 might be appropriate.

CHF

The Dollar versus Swissy pair inclined to reach the 61.8% correction which resides at the key support for the downside channel between 1.0310 – 1.0320 yet the stochastic indicator as entered an overbought area making us expect a decline on the intraday basis reaching 1.0200. This decline remains valid as far as 1.0325 remains intact on the four hour charts.

The trading range for today is among the key support at 1.0000 and the key resistance at 1.0550

The general trend is to the downside as far a 1.1225 remains intact with targets at 0.9600

Support: 1.0260, 1.0235, 1.0200, 1.0135, 1.0080
Resistance: 1.0310, 1.0390, 1.0425, 1.0480, 1.0550

Recommendation: Based on the charts and explanations above, our opinion is selling the pair from 1.0310 to 1.0200 and stop loss above 1.0390 might be appropriate.

CAD

The Dollar versus Loonie pair surged yesterday opposing expectations to breach the key resistance as seen in the above image to form a bullish technical patter with a neckline at 1.0850. Momentum indicators are providing negative signs which may result in the retest of the above mentioned level before confirming the short term uptrend. From here we expect the pair to incline on the short term targeting 1.1045 and 1.1120 respectively as far as 1.0850 remains intact on the four hour charts.

The trading range for today is among the key support at 1.0425 and the key resistance at 1.1120

The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0300

Support: 1.0850, 1.0765, 1.0700, 1.0655, 1.0625
Resistance: 1.0885, 1.0935, 1.0985, 1.1045, 1.1120

Recommendation: Based on the charts and explanations above, our opinion is buying the pair from 1.0850 to1.0985 and stop loss below 1.0765 might be appropriate

GBP/JPY

Sterling versus Japanese yen collapsed, breaching the detected neckline of our daily double top formation and closing below it. Now, the door is opened for further bearishness on the intraday basis and also the short term basis, targeting 137.55 first. AROON indicator alongside the daily negative structure of the candlesticks as seen on the secondary image supports our bearish scenario.

Trading range for today is among key support at 140.00 and key resistance at 150.50.

The general trend is to the downside as far as 167.40 remains intact with target at 116.00.

Support: 144.80, 144.00, 143.50, 142.75, 141.60
Resistance: 145.50, 146.20, 146.80, 147.30, 148.25

Recommendation: Based on the charts and explanations above our opinion is, selling the pair from 145.25 targeting 142.75 and stop loss above 147.30 might be appropriate.

EUR/JPY

The pair has declined reaching the key support level of 132.50. The negative structure along with the negative signs obtained from Ribbons lines [EMA 10-80] as seen on the secondary image and AROON and RSI 14, offer a potential downside rally resumption in order to breach the above mentioned level to activate the previous discussed internal third wave of Elliott studies to the downside.

Trading range for today is among key support at 130.05 and key resistance now at 136.30.

The general trend is to the downside as far as 141.44 remains intact with targets at 100.00 followed by 88.97 levels.

Support: 132.90, 132.50, 131.80, 131.20, 130.70
Resistance: 133.70, 134.15, 134.85, 135.20, 136.10

Recommendation: Based on the charts and explanations above our opinion is, selling the pair from 133.20 targeting 131.05 and stop loss above 134.95 might be appropriate.

EUR/GBP

About 15 pips separated the pair from our detected technical target of the bullish scenario at 0.9205-check the analysis here-. Now, the daily formation and positive closing of the candlesticks offer further bullishness towards the extended technical targets of the bullish harmonic structure and the cup with handle pattern as seen on the four-hour chart around 0.9260 followed by 0.9370. Hence we keep our overview to the upside on the intraday basis.

Trading range is among the key support at 0.9000 and key resistance now at 0.9375.

The general trend is to the upside as far as 0.8020 area remains intact with targets at 1.0000 followed by 1.0400 levels.

Support: 0.9160, 0.9130, 0.9095, 0.9070, 0.9030
Resistance: 0.9205, 0.9235, 0.9260, 0.9320, 0.9370

Recommendation: Based on the charts and explanations above our opinion is, buying the pair from 0.9160 targeting 0.9255 and stop loss below 0.9080 might be appropriate.

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