Daily Technical Report : September 20, 2013

EUR/USD - European Session

The pair’s volatile trading of yesterday remained above 78.6% correction at 1.3505 keeping positivity. Despite overbought signals showing on momentum indicators, stabilizing above the referred to level forces us to ignore these signals and monitor the positivity of Linear Regression Indicators. The upside move is valid today and the first suggested target is 88.6% correction at 1.3605 followed by the previous top 1.3711 levels.

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 sharply dropped but remained limited above 78.6% correction at 1.6010 as shown on graph. We count on stabilizing above the referred to level to keep our positive expectations. Of note, breaking the referred to level will trigger another bearish wave.

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

Despite that the pair moved to the upside yesterday, it failed to remain stable above 99.35 represented in 61.8% correction forcing us to think that the downside move is still valid. Momentum indicators are showing negativity that support these expectations.

The trading range for today is among key support at 96.75 and key resistance at 100.30.

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

USD/CHF

The pair dropped and is trading around 113% correction at 0.9110 levels showing on graph. Stability below the referred to level might extend the downside move affected by breaching the bullish support as shown. In fact, trading below 0.9185 will keep the bearish possibility valid, but stabilizing below 0.9110 is important so the oversold signals showing on momentum indicators won’t affect the pair over intraday basis today.

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 moved sharply to the upside after failing to stabilizing below 127.2% correction at 1.0190 then moved to trading again above key support level of the ascending channel. Meanwhile, we cannot confirm the bearish harmonic Bat Pattern’s affect, whereas the pair is stable below bottom C as the pair didn’t prove trading above it. Therefore, we prefer to remain intraday neutral today waiting for new confirmation signals especially that momentum indicators contradicts with Linear Regression Indicators.

The trading range for today is between the key support at 1.0100 and the key resistance at 1.0360.

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 corrected some of the earlier sharp gains yesterday, following the bullish breakout above 0.9350-0.9385 pivotal resistance area, which was the ceiling of multi-month trading range, and accordingly, the price may have confirmed completing a bottom, and may head higher within the upcoming sessions. 0.9350 should form a floor for downside attempts.

NZD/USD

The NZDUSD found resistance at the 161.8 percent Fibonacci extension level for the latest bearish wave, to retrace some of the earlier gains. However, the price is attempting to resume the bullish wave after a shallow correction. Accordingly, a break above the 161.8 level should extend the move