Daily Technical Report : September 19, 2013

EUR/USD - European Session

The sharp upside move of yesterday managed to take the pair above 78.6% correction at 1.3505. Stability above the referred to level might extend bullishness today and the first target represents 88.6% correction at 1.3605, as breaching it might extend the upside move towards the previous top 1.3711. Despite that momentum indicators are showing overbought signals, Linear Regression Indicators are positive supporting the current bullish wave.

The trading range for today is among the key support at 1.3415 and key resistance at 1.3715.

The general trend over short term basis is sideways targeting 1.2775 as far as 1.3600 is daily-closing.

GBP/USD

The pair rose sharply yesterday and managed to touch 88.6% correction at 1.6165 shown on graph. This level represents an intraday interval for today’s session and breaching it might extend bullishness. By examining Linear Regression Indicators, we find that it’s extending positivity. Momentum indicators are showing overbought signals; as the pair should not break 78.6% correction at 1.6010 to keep the upside move valid.

The trading range for today is among the key support at 1.5930 and key resistance at 1.6340.

The general trend over short term basis is to the upside as far as areas of 1.5280 remains intact targeting 1.6540.

USD/JPY

The pair rebounded after touching around levels 98.00 without achieving a four-hour closing below it. Linear Regression Indicators are still negative and the pair is stable below 98.65 forcing us to keep our negative expectations. Of note, breaking 98.00 levels and stabilizing below it is very important to prove the bearish wave, as the referred to level is represented by 38.2% correction shown on graph.

The trading range for today is among key support at 96.75 and key resistance at 99.70.

The general trend over short term basis is to the downside as far as areas of 103.50 remain intact targeting 93.50.

USD/CAD

The pair dropped and broke the key support level shown on graph. Stability below 0.9185 became negative and could push the pair further to the downside towards 0.9065 and perhaps further reaching 0.8955 levels in the upcoming period. Of note, breaching 0.9215 and stabilizing above it will fail this negative outlook.

The trading range for today is among key support at 0.8955 and key resistance at 0.9215.

The general trend over short term basis is to the downside stable at levels 0.9775 targeting 0.8860.

USD/CAD

The pair broke the bullish key support level of the ascending channel that dominated the pair over medium-term time intervals. The pair also broke 113% correction of CD Leg of the bearish harmonic Bat Pattern. Therefore, the possibility of extending bearishness is valid today but the pair has to break 127.2% correction of CD Leg of the harmonic pattern at 1.0190. Anyhow, trading below 1.0275 will be considered negative today.

The trading range for today is between the key support at 1.0090 and the key resistance at 1.0275.

The general trend over short term basis is to the upside with steady daily closing above levels 1.0100 targeting 1.0775.

AUD/USD

The pair has decisively broken 0.9385 resistance level, completing a major bottom as shown on the daily chart above. The breakout is expected to push price higher for the upcoming weeks. Targets start at 0.9660 previous swing high and resistance level.

NZD/USD

The NZDUSD extends the major bullish breakout, could be heading towards the 78.6 percent Fibonacci retracement level of the 0.8674-0.7682 wave, at 0.8465. Overall, the short term bullish bias is strong and remains favored for today.