Daily Technical Report : November 29, 2013

EUR/USD - European Session

The pair extended the positive trading, whereas it approached 61.8% correction at 1.3625 – 1.3630. The possibility of extending the upside move is valid today but the pair has to breach 1.3630 to trigger another bullish wave targeting 1.3705 and perhaps 1.3770 levels later. Anyhow, trading above 1.3500 is positive but consolidating above 1.3555 is required over intraday basis today to keep the bullish possibility.

GBP/USD

The pair touched 127.2% Fibonacci level at 1.6370 then slightly dropped. But the current slight downside move is still limited above Linear Regression Indicators and the previous top at 1.6259 favoring the possibility of keeping the upside move valid, Trading above the referred to top is positive, but breaching 1.6370 could trigger a strong bullish rally today. We hold on to our positive expectations supported by the bullish technical classical formation showing on graph.

USD/JPY

The pair consolidated above Linear Regression Indicator 34 as it is gradually approaching the target at 103.10 represented in 161.8% correction as showing on graph. Despite that Stochastic is overbought, but we see negative signals showing keeping the bullish possibility valid. Breaking 101.65 could fail our expectations, otherwise the upside move remains intraday valid.

USD/CHF

The pair is gradually dropping affected by stabilizing below 23.6% correction at 0.9095. Meanwhile, the pair is touching the resistance level that was breached and turned to support from the upside without stabilizing below that level as showing on graph. There is a contradiction between Stochastic that is showing oversold signals, and RSI that is showing a negative bias of the momentum that is trading below line 50. Therefore, we prefer to remain intraday neutral today waiting for better confirmation signals.

USD/CAD

The pair witnessed yesterday a slight correction then moved to the upside approaching the previous top at 1.0607 levels. The upside move will extend supported by Linear Regression Indicators, whereas the pair is moving further to the upside towards 1.0665 and perhaps 1.0725 later represented in Fibonacci levels within the ascending channel showing on graph. Stability above 1.0515 is significant to keep the bullish bias as it won’t allow the pair to react to the overbought signals on momentum indicators.

AUD/USD

The pair maintains stability above the ascending channel showing on graph so we still favor the bullish intraday bias that targets retesting 0.9195 then 0.9275 levels before moving back to the downside. Breaking 0.9070 then 0.9040 will push the pair to extend the overall bearish move without the need to the suggested bullishness.

NZD/USD

The negative pressure still dominates the pair’s trading and is currently stabilizing below 50% Fibonacci of the upside move showing on graph, forcing us to keep our bearish expectations that depends on the negative effect of the Head and Shoulders Pattern showing on graph. Our awaited targets start at 0.8035 then 0.7895, while achieving them requires stability below 0.8230 levels.