European Session
EUR/USD
The pair failed to stabilize above 1.3780 yesterday then moved back to the downside. Negative signals are currently showing on all the technical indicators showing on graph. Meanwhile, the pair is still stable above 50% correction at 1.3720 which limits our ability to be negative.
We prefer to remain neutral in this report, whereas the contradiction between technical indicators with stability above the support 1.3720 levels forces us to do so, and we recommend to follow the updates on this report waiting for new confirmation signals.
GBP/USD
The pair is fluctuating but failed yesterday to stabilize below 1.6590 taking it to the upside now. The upside move is limited below Linear Regression Indicator 34 and 55 while Linear Regression Indicator 34 is trading negatively.
MACD tends to be negative also while AROON is showing weakness in the downside move, but the suggested downside move continues. Therefore, the bearish possibility is still available but stabilizing below 1.6695 - 1.6700 is significant to keep this outlook. Breaching 1.6722 triggers a bullish wave and fail any bearish possibility.
USD/JPY
The USD/JPY extended the rally, confirming a break above the rising trend line for the latest bearish wave, and currently retesting 103.75 horizontal resistance level, where further stability above the later will probably extend the upside at least to 104.43 at the 78.6 retracement level. The bullish bias is favored for today and over the near term.
USD/CHF
The USD/CHF failed to retest 0.8780 support area yesterday as price rebounded towards the 50-days SMA again, forming a potential new higher low as shown on the daily chart above by the red arrows. A break above the average is still required to confirm this as a new higher low and for the upside to extend further. For now, we will look for intraday signals to confirm the move and thus we move to the sidelines awaiting confirmations.
USD/CAD
The USD/CAD remains under downside pressure, pushing slowly and approaching 1.1000 level, a break below the latter could clear the way towards our downside targets at 1.0950 and 1.0910 support. Overall, holding below the 50-days SMA around 1.1085 keeps our bearish bias intact.
AUD/USD
The AUD/USD pushed lower yesterday, retesting 0.9215-0.9210 key short term support and neckline for a four-hour bearish double top formation, the price needs to clear this support to confirm the extension of the bearish correction. Overall, we still see further downside and we expect the bearish breakout to materialize, targeting 0.9150 areas as a first downside target. Stability back above 0.9260 may negate this scenario.
NZD/USD
The NZD/USD extends the sharp selloff, breaking the main rising trend line for the bullish wave, following the bearish rejection from 0.8675 main horizontal resistance level, where price formed a bearish gravestone doji candle. The downside could extend further, where we see initial support level around 0.8500 area.
