USD/JPY is still trading below the initial resistance of 110.60-110.70 despite trading above moving averages 50 and 50 as seen on the provided daily chart.
Strength of the upside recovery is being lost gradually as seen on ADX, while trading between SMA50-red- and the aforementioned resistance makes risk versus reward ratio inappropriate.
On the downside, coming below 109.60 and 109.40 respectively could expose moving averages.
Support: 109.60-109.20-108.90
Resistance: 110.30-110.60-111.10
Direction: Neutral
As discussed many times last week, USD/CHF has soared respecting the bullish scenario after clearing 0.9790-0.9780 regions.
Actually, reaching the current trading levels was very easy supported by strength of US dollar against all majors, but the inclines have taken RSI14 to move deeply inside the overbought territories.
This signal on RSI in addition to the mild weakness appearing on ADX contradict with the positivity over bigger time-frames.
We will be neutral until risk versus reward ratio becomes appropriate enough to enter the market, while 0.9850 and 0.9980 are important levels to be watched out.
Support: 0.9860-0.9805-0.9780
Resistance: 0.9945-0.9980-1.0000
Direction: Neutral
Euro inclined with the European opening today, trading above 50% Fibonacci at 1.1215-1.1220, which is positive, but it remains limited below 38.2% Fibonacci at 1.1315 and below moving averages.
ADX shows decrease in bears’ power, but without showing positivity, while RSI moves below 50.00. Hence, we prefer to be neutral today.
Support: : 1.1215 – 1.1170 – 1.1125
Resistance: 1.1285 –1.1320 – 1.1355
Direction: Neutral
Sterling failed to incline after touching SMA20 around 1.4535 where it declined again to hover around 38.2% Fibonacci at 1.4500.
RSI remains negative along with weak attempt to achieve positive crossover, but D+ is weak.
We will be bearish with a break below 1.4475 and trading below 1.4500 is bearish, protected by 1.4605.
Support: 1.4500 – 1.4475 – 1.4435
Resistance:1.4535– 1.4590– 1.4605
Direction: Bearish