EUR/USD - European Session
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EURUSD dropped sharply yesterday, yet remained limited above the main ascending channel support around 1.3810, nevertheless, a bearish candle formation was formed below Linear Regression Indicator 34.
The negativity on momentum indicators threaten the positive scenario after the pair failed to hold above 1.3895, especially with approaching 1.4000 psychological barrier. We prefer to remain on the sidelines now waiting for more confirmations.
GBP/USD - European Session
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GBPUSD drew a long wick candlestick and closed around 1.6625 support, showing that those support areas has lost the strength. Stability below 1.6600 is required to confirm bearishness but with currently appropriate risk levels we can favor the downside move for sterling today as far as consolidation is below 1.6700.
AROON is trading negatively and Linear Regression Indicator 34 is attempting to crossover negatively with 55 and that offers new bearish signals. Stability below 1.6600 with weekly closing below it required to preserve the bearish outlook for next week as well.
USD/JPY - European Session
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USDJPY extended the bearish move breaking and settling back below 102.70 support level, and that threatens for more downside pressures, and reverses the short term bias back to bearish. The next downside target could be at 101.35 support level, holding below the 50-days SMA at 102.30 should keep this scenario valid.
USD/CHF European Session
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USDCHF remains under strong downside pressure hitting our downside target at the 127.1 extension level 0.8702, a break below the latter should extend the downside even further. Overall,. The bearish trend and downside momentum continues to be strong and thus favors more downside within the context of the overall bearish trend. Targets may extend toward the 161.8 extension at 0.8580.
USD/CAD European Session
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USDCAD is pushing back lower after testing areas near the descending resistance foe the potential symmetrical triangle formation. We may see a new bearish wave towards the symmetrical triangle support level around 1.0975, where a break below 1.1050 support may confirm this scenario. The bearish bias is favored today.
AUD/USD European Session
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AUDUSD failed to maintain the strong bullish bias, as price retreats sharply with the end of yesterday’s session to end the day well off the highs, forming a major upper shadow candle at 0.9085 main resistance level. Accordingly, we believe we may see further downside pressures and sideways movement today, for a possible retest of 0.8900 areas.
NZD/USD European Session
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NZDUSD failed to hold above the recent high at 0.8545, as price was rejected with the end of yesterday’s session forming a major upper shadow, and hinting the bullish move may pause for now. Overall, the bullish trend is still intact, and therefore we prefer to wait a confirmation signal for a downside move.
