Technical Major Currencies

The pair is fluctuating heavily between 1.3650 from downside and 1.3825 from the upside. In fact, consolidation within the top of point (C) of the Crab harmonic pattern and the 127.2% Fibonacci extension of the CD leg of the mentioned pattern drive us to remain neutral today, especially that a bearish technical structure may be forming within these levels if  the pair continues to consilidate below 1.3650; however this structure could turn into a bullish continuation pattern in case the pair breaches 1.3825-50.

The trading range for today is among the major support at 1.3565 and the major resistance at 1.4010.

The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.

Despite drawing a positive sign on Stochastic of the main daily studies, but yesterday's closing was also achieved below 1.5780-38.2% Fibonacci of the downside rally from 1.6615 to 1.5270- and below SMA 50; thus, we looked deeper at the four-hour graph. The secondary image shows how the fluctuation that dominated the movements, where the candlesticks have formed long wicks and tails, suggesting a technical case of indecision. As a consequence, we prefer staying aside over intraday basis until a reasonable setup presents itself. Of note, a break of 1.5690 will be very negative indication this time.

The trading range for today is among key support at 1.5490 and key resistance at 1.6000.

The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 areas remain intact.

The pair is still struggling around SMA 20 -colored in green- inside the previous detected two months sideways range as seen on the provided daily graph. We need more confirmation to turn our short term bias into bullish. We will get this confirmation once the pair breaches through 77.20 and preferably above 77.70 to make sure that the pair succeeded in beating the continuous conflicting signs on the chart. Our suggested positive scenario is protected by the floor formed around 75.90-75.80 areas.

The trading range for today is among key support at 75.25 and key resistance now at 78.45.

The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.

The pair provided the awaited breach of 0.8920, which confirms the continuous effect of the bearish Butterfly harmonic pattern and provides us with further indications that the downside movement could extend towards the pattern’s first target, which represents the 38.2% Fibonacci correction of the Butterfly pattern. Stochastic is within oversold areas, which could trigger heavy fluctuations today, but stability below 0.9000 (EMA 20) and also trading below 0.8920 supports our suggested scenario to remain valid.

The trading range for today is among the major support at 0.8505 and the major resistance at 0.9185.

The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.

Yesterday, the pair was stable above 1.0120 during the whole the session, but also below the Exponential Moving Averages 20 and 50. The relative Strength Index is trading below the 50-point level, while Stochastic attempts now to provide a positive crossover. Consolidation below 1.0120 supports the possibility of forming a bearish continuation pattern; however a breach of 1.0255 could lead to a bullish reversal pattern. All these factors together drive us to remain neutral, awaiting the pair to trade out of the mentioned range between 1.0120 and 1.0255.

The trading range for today is among the major support at 0.9970 and the major resistance at 1.0450

The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.

Please see the attached chart below.