Daily Forex Technicals | Written by Varengold Bank
Good morning from Hamburg and welcome to our daily FX Report. Unfortunately we have to report again about record economic slowdowns in some countries. But the best news comes from Germany, even the very nice spring weather. Anyway, we wish you a successful trading week.
Markets review
The JPY and the USD gained against higher-yielding currencies on expectations the global recession will deepen, which spurred investors to seek both currencies as a safe haven. The Japanese currency increased for the fifth time in six days versus the EUR after a report this week may show China' economy slowed down to the lowest level in almost a decade. In addition Singapore said its economy may shrink the most in its 44-year history. The EUR/JPY fell to 133.11 after it reached a low at 132.65. The NZD/JPY dipped to 58.97 after it touched a day-low at 58.69 while the CHF/JPY declined to 88.00. The strong USD performed gains against the AUD and reached a high of 0.7271 before it pulled back to 0.7288.Yesterday the EUR/USD rose for the second day on concerns a German report will show that wholesale prices fell for a series of eight months, tomorrow. The weak EUR performed losses against a few other currencies after investors still looking forward for signals from the ECB. Council member Axel Weber will speak here in Hamburg tomorrow and Erkki Liikanen will deliver a speech in Helsinki the following day. However the EUR/USD rose 1.37% to 1.3368 before it pulled back to 1.3330.
Daily Forex Technicals | Written by Mizuho Corporate Bank
EURUSD
Comment: In holiday-thin markets yesterday the Euro managed to squeeze up to the top of the Ichimoku 'cloud'. A sustained break above 1.3400 might turn momentum bullish, keeping in mind that the Euro is not at all overbought.Strategy: Buy at 1.3325; stop below 1.3100. Add to longs on a sustained break above 1.3400 for 1.3600 and then more.Direction of Trade: ↗
Support Resistance
1.3307 " 1.3381
1.3275 1.34
1.32 1.345
1.3125 1.3518
1.3100* 1.3582/1.3600
GBPUSD
Comment: Consolidating neatly under last Monday's high at 101.45. We continue to favour another brief squeeze higher still, to 102.00 and possibly even as high as 106.50 some time later this month.Strategy: Buy at 99.80; stop below 98.70. Cover ahead of 102.20Direction of Trade: →↗
Support Resistance
1.4828 " 1.492
1.4725 1.496
1.465 1.5000**
1.4583* 1.5155/1.5185
1.446 1.5375*
USDJPY
Comment: Consolidating neatly under last Monday's high at 101.45. We continue to favour another brief squeeze higher still, to 102.00 and possibly even as high as 106.50 some time later this month.Strategy: Buy at 99.80; stop below 98.70. Cover ahead of 102.20.Direction of Trade: ↗
Support Resistance
99.61 " 100.43
99.31 100.89
99 101.11
98.70* 101.45/101.65*
98.5 102.20*
Daily Forex Technicals | Written by ecPulse.com
EURO
The Euro versus the dollar inclined sharply yesterday after the US session opening and after a quiet trading day during the morning session opposing expectations of breaching the 1.3110 resistance to the downside. The 61.8% correction was able to halt further gains for the pair which kept the short term trend to the downside as we see trading still within a triangle with a support at 1.3110 and a resistance at 1.3490. On the intraday basis we expect to witness a decline to reach the key support once again as far as 1.3405 – 1.3490 remains intact.The trading range for today is among the key support at 1.2980 and the key resistance at 1.3740.The general trend is to the downside as far as 1.4710 remains intact with targets at 1.2120
Support: 1.3310, 1.3230, 1.3185, 1.3110, 1.3065
Resistance: 1.3405, 1.3490, 1.3525, 1.3580, 1.3625
Recommendation: According to our analysis, sell the pair below 1.3405 with targets at 1.3310 and stop loss with a four-hour closing above 1.3490
GBP
The GBP/USD pair continued to incline to gradually breach the resistance levels and head towards the key resistance at 1.4960 which is the pivot point for the pair on the short term. The continuous pressure of the pair towards the upside may result in a successful breakout of the 1.4960 level indicating that this level must be monitored carefully. A daily close above this level will open the way for the pair to target 1.5350 only if the 1.5050 was breached as well. This incline remains as far as 1.4740 remains intact and the breach of the 1.4960 level is witnessed.The trading range for today is among the key support at 1.4345 and the key resistance at 1.5350. The general trend is to the downside as far as 1.5270 remains intact with targets at 1.3440
Support 1.4825 1.4765 1.4740 1.4645 1.4600
Resistance 1.4960 1.5050 1.5105 1.5145 1.5235
Recommendation According to our analysis, sell the pair below 1.4960 with targets at 1.4875 and stop loss with a four-hour closing above 1.5050
JPY
The Dollar versus Japanese yen declined towards the 99.55 support level and the key support for the ascending channel as trading remains within these two levels. Several patterns are being formed which may limit intraday movements as trading currently is within a symmetric triangle within the 99.55 level and the 100.55. This pattern is targeting the resistance level where a breach of this level will confirm the short term trend to the upside to reach the suggested targets at 101.45 and levels above 103.00. It is important to monitor the 99.55 support level where the continuous pressure on the level may result in the formation of a bearish technical pattern with a neckline at the same level where a breach of this pattern will take the pair to 98.40 – 98.00 as an initial target and extend losses towards the key support at 96.35. The trading range for today is among the key support at 96.35 and the key resistance at 103.00. The general trend is to the downside as far as 102.60 remains intact with targets at 84.95 and 82.60
Support: 99.55, 98.85, 98.40, 98.00, 97.55
Resistance: 100.55, 101.20, 101.45, 101.95, 102.25
Recommendation: According to our analysis, buy the pair above 99.55 with targets at 100.55 and stop loss with a four-hour closing below 98.85
CHF
The USD/CHF pair declined sharply yesterday after failing to breach the key resistance for the ascending channel since it meets with the 61.8% correction as seen on the four hour charts. The pair is currently nearing the key support at 1.1275 where we may witness a rebound to target the resistance level for the channel yet a breach of the support level to the downside will change the intraday and short term trends to target the pivot support at 1.1165. The trading range for today is among the key support at 1.0975 and the key resistance at 1.1900. The general trend is to the upside as far as 1.0570 remains intact with targets at 1.2245.
Support: 1.1275, 1.1230, 1.1205, 1.1165, 1.1100
Resistance: 1.1380, 1.1440, 1.1525, 1.1615, 1.1725
Recommendation: According to our analysis, buy the pair above 1.1275 with targets at 1.1440 and stop loss with a four-hour closing 1.1165
GBP/JPY
At 149.20 - twenty pips below our target (check it here) - sterling versus Japanese yen has placed a temporary high. Now the reaction is under preparation on the intraday basis depending on the obvious reversal candle stick formation while (Stochastic, William%R and CCI-RVI combination) supports this anticipated bearishness showing clear overbought signals. Carefully note that a break of 147.75 (23.6%) Fibonacci of the entire rally started at 135.70 and topped out at 151.50 will accelerate this bearishness.Trading range for today is among key support at 143.60 and key resistance at 155.00.The general trend is to the downside as far as 156.20.remains intact with target at 116.00.
Support: 147.80, 146.85, 145.90, 145.25, 144.60
Resistance: 149.20, 150.00, 150.50, 151.50, 152.25
Recommendation: According to our analysis, sell the pair at 148.50 with targets at 145.90 and stop loss at 150.50.
EUR/JPY
After reaching it's projected target by testing 38.2% Fibonacci level of the entire decline started 170.00 areas and bottomed out at 111.96 as we predicated yesterday, the pair is moving downward forming a clear reversal candlestick as shown on the secondary image. William%R, CCI and stochastic support this bearishness on the intraday basis . A breakout below EMA55-currently located at 132.50- will bring further decline towards the lower line of the channel but a break of 134.50 will damage this scenario.Trading range for today is among key support at 129.25 and key resistance now at 135.50.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: 132.25, 131.50, 130.65, 130.05, 129.25
Resistance: 133.10, 133.80, 134.50, 135.45, 136.00
Recommendation: According to our analysis, sell the pair at 132.75 with targets at 130.60 and stop loss at 134.60
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