Daily Technical Report : January 17, 2014

EUR/USD - European Session

The pair is showing very weak trading above the bullish support level of the ascending channel at 50% correction represented in 1.3590 levels. Stability above the referred to level keeps the bullish possibility valid and the weak sideways trading benefits the ascending channel as it weakens the negative signals of momentum indicators and Linear Regression Indicators. Breaching 1.3665 is required to confirm the upside move, but we will depend today on stabilizing above 1.3560 to keep our classical expectations over intraday basis.

Breaking 1.3520 at 61.8% correction for any reason will fail the positive expectations, because it will confirm exiting the ascending channel and starting a bearish correction.

GBP/USD

The pair broke yesterday the bullish support of the ascending channel as showing on graph, but the pair has to stabilize below 38.2% correction at 1.6310 to confirm this break. Linear Regression Indicators are negative and RSI is trading below line 50 strengthening the possibility of extending bearishness.

Of note, Stochastic has entered oversold areas. Therefore, we will wait to break 1.6310 to confirm the negative expectations today, whereas breaking the referred to level will fail any respond to the signals on Stochastic.

USD/JPY

USDJPY moved lower yesterday, as price retested the broken ascending support, which turned to a resistance around 104.85 areas, before heading back lower. We still see further room to the downside toward 103.90 support level. 104.85 should hold for the intraday bearish bias to remain valid.

USD/CHF

The USDCHF moved lower yesterday, currently trading near the rising trend line to the latest bullish wave, meanwhile price has shown some renewed bullish bias at 0.9050 support level. Accordingly, we look for an intraday bullish move unless price settles below 0.9030-0.9025 level, which may extend the downside towards 0.8985 support.

USD/CAD

USDCAD is consolidating below the broken rising trend line, meanwhile RSI continues to show strong bearish divergence, accordingly, we still expect some bearish correctional bias, unless price takes the recent high and 1.1000 psychological barrier.

AUD/USD

AUDUSD closed the trading session below the major support around 0.8840, as price maintains the strong bearish bias, where further downside remains likely, targeting 0.8700 areas. Holding below 0.8840-0.8850 level should keep the bearish bias dominant.

NZD/USD

NZDUSD resumed the bearish bias after an upside pullback yesterday, where the recent bearish rejection from 0.8415 resistance hinted we may see a new leg lower. Accordingly, stability below 0.8330 now confirms further downside in the near term.