Daily Technical Report : August 07, 2015
The strong bearish move seen yesterday has pushed the GBPUSD pair to trade below the support line and below 23.6% Fibonacci at 1.5555.
Moving averages crossed over bearishly and RSI moves below 50.00.
More downside could be witnessed as far as trading remains below 1.5560 and a break below 1.5470 will prove the strength of the bearish wave.
Support: 1.5470 – 1.5405 – 1.5370
Resistance: 1.5560 – 1.5600 – 1.5630
EURUSD has been trading below the resistance of the downside channel and below SMA50.
Still, ADX gives off mixed signs, while EURUSD attmpts to stabilize above SMA20.
On the other side, 1.0955 acts as a ceiling and RSI rebound from 50.00 levels.
In fact, we remain bearish and a break below 1.0855, marked by 78.6% Fibonacci will confirm. On the upside, 1.10 should hold to keep the bearishness valid.
Support: 1.0855 – 1.0825 – 1.0735
Resistance: 1.0955 – 1.1000 – 1.1050
Calm movements have been seen on the USDCHF pair following the impressive upside actions seen during the previous period.
However, we believe that, RSI entering overbought areas is the main reason behind this calm move, but with lack of major resistances above 0.9800 except at 0.9860, we think that, traders will beat this exhaustion sign.
Anyway, we will be bullish today, aiming to challenge 0.9905 and 0.9965 as far as 0.9710 hold.
The technical situation remains unchanged with USDJPY moving within a narrow range since yesterday, while RSI 14 is very close to overbought regions.
Thereby, we will be neutral, as the pair is also very close to 125.00 psychological.
Note that, USDJPY is very sensitive pair to NFP and therefore, we should manage our desk very well in case we trade it.
A break above 125.20 will affirm clearing 125.00 and will be a bullish sign, but coming below 123.80 will damage the bulls’ attempts.
Direction: Neutral, but bullish above 125.00.