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EUR/USD
The Euro roared to a high of 1.0775 (1.0780 parabolic, cloud density & MACD resistance) after having broken key supports at 1.0730 (550-day moving average & oscillator support) from a low of 1.0709. The break & close above 1.0750 (mid bolinger & channel resistance) cements the strength of the bull rally to target 1.0800 (wave equality target) & 1.0865 (chart top resistance). A break & close below 1.0550 (parabolic & IKK support) would rekindle the bear rally to target 1.0475 (flagging congestion & Gann support). Daily stochastics & piercing bull candles hint at a northward bias. We prefer to buy the Euro on dips to 1.0700-1.0690 with a stop at 1.0660 for a target of 1.0740-1.0750 while selling the Euro on rises to 1.0810-1.0820 with a stop at 1.0850 for a target of 1.0750-1.0740.
USD/CHF
The dollar rose to a high of 1.3668 (1.3680 channel, Fibbo retracement & IKK resistance)) but later dipped to break key supports at 1.3620 (mid bolinger, cloud density & trough support) & 1.3580 (flagging congestion & cloud density support) to register a low of 1.3576. The consistent break & close below the 1.3650 bolsters the bear rally to target 1.3580 (flagging congestion & parabolic support) & 1.3500 (psychological & chart point support). Only a break above 1.3800 (Gann & parabolic resistance) rekindles any hopes for a retest of 1.4250-1.4270 (multi-cycle & Fibbo 38.2% retracement). Daily stochastics & dark cloud bear candles in the daily charts show a southwards bias. We prefer to buy the dollar on dips to 1.3560-1.3570 with a stop at 1.3535 for target of 1.3620-1.3630 while selling the dollar on rises to 1.3685-1.3695 with a stop at 1.3720 for a target of 1.3650-1.3640.
USD/JPY
The dollar initially dipped to 118.81 (118.80 mid bolinger, flagging congestion & channel resistance) but later underwent a sharp bear rally to break key supports at 118.40 (MACD, IKK & parabolic resistance), 118.00 (195 day moving average, psychological, oscillator & mid bolinger support) & 117.80 (chart point & trendline support) to register a low of 117.68. The consistent maintenance below the 118.25 still leans in favor of the bearish drive testing 117.80 (200 day moving average & IKK support) & 117.30 (mid bolinger & flagging congestion support) & later 116.50 (wave equality target). Only a break & close above the 118.80 level would reaffirm the bull rally testing 120.80 (175 day moving average & oscillator resistance) & later 121.60 (trendline & Fibbo retracement). Daily stochastics & candle patterns are pointing towards a southward bias. We prefer to buy the dollar on dips to 117.60-117.50 with a stop at 117.20 for a target of 118.30-118.40 while selling the dollar on rises to 119.00-119.15 with a stop at 119.40 for a target of 118.70-118.60.
GBP/USD
The cable rose to a high of 1.6239 (1.6250 parabolic, Gann & trendline resistance) after having broken key resistances at 1.6150 (trough, IKK & flagging congestion support) & 1.6200 (psychological, cloud density & momentum support). The break & close above the 1.6200 barrier bolsters the bullish momentum to target 1.6250 (mid bolinger & cloud density resistance) & later 1.6330 (trendline, oscillator & Gann resistance). The break & close below the 1.6000 would open the way for a possible test of 1.5850 & 1.5720. Daily & stochastics & rising bull candles hint at a northward bias. We prefer to buy the cable on dips to 1.6160-1.6150 with a stop at 1.6120 for a target of 1.6200-1.6210 while selling the cable on rises to 1.6260-1.6270 with a stop at 1.6295 for a target of 1.6210-1.6200.
DISCLAIMER:
The views expressed in this report are not trading recommendations. The report is for discussion purposes only. Opinions are for the purpose of analysis only and should be looked at as such. No claims shall be accepted for any losses incurred on account of the information provided.
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