We were neutral yesterday and the daily candle reflected that by forming a doji candlestick.
The USD/JPY trades between SMA50 at 109.60 and the initial resistance of 110.50 and between those levels, the neutrality will be favored.
RSI also shows decrease in bullish momentum despite moving above the value of 50.00, while ADX shows decrease in uptrend strength, moving above SMA50 is good for bulls.
The above-mentioned factors force us to be neutral today.
- Support: 110.00-109.60-109.20
- Resistance:110.60-111.10-111.55
- Direction: Neutral
Since the opening today, the USD/CHF didn’t show any move, as it is still trading between 0.9900 and 0.9920.
Actually, the rally was very strong during the week and our readers know that we caught most of it, offering many bullish setups.
This rally has taken the RSI14 to the overbought regions and that should cause fluctuation.
We will be neutral today, as risk versus reward ratio is inappropriate.
- Support: 0.9860-0.9805-0.9780
- Resistance: 0.9945-0.9980-1.0000
- Direction: Neutral
EUR/USD inclined, trading above 1.31215-1.1220 and that may weaken the signs on ADX and RSI.
In general, the bearish direction remains intact, but risk versus reward ratio is inappropriate, which force us to avoid trading the pair although we are bearish.
- Support: : 1.1170 – 1.1125 – 1.1085
- Resistance: 1.1235 –1.1285 – 1.1315
- Direction: Bearish, but we will not take new positions.
GBP/USD declined alongside bearish signals appearing on RSI14 and ADX. Stable move below 1.4605 at 61.8% is a negative catalyst.
Another break below 1.4550-1.4540 is required to prove the bearish correction towards 1.4495.
- Support: 1.4550 – 1.4495 – 1.4435
- Resistance: 1.4605 – 1.4525 – 1.4590
- Direction: Bearish correction