EURUSD (1.14): Since last week’s analysis, EURUSD has remained in a trading range of 1.1437 – 1.1334. We expect to see this ranging continuation nearing the end with a potential breakout very likely around the corner. The Stochastics shows price action staying flat above the 80 levels indicating that momentum is weakening. While 1.105 – 1.10285 remains the most likely correction to the downside, support levels near 1.13 and 1.123 are likely to hold the declines for the moment. Regardless, EURUSD is expected to move lower, unless we see a conclusive break above 1.148.
EURUSD – Range bound price action continues
USDJPY (108.2): USDJPY closed with a small bodied candlestick pattern yesterday indicating a possible exhaustion in the momentum. A bullish close above the high at 108.443 could signal a potential correction. 111.0 remains in the first resistance level of interest which could keep USDJPY pressured to the downside. Another bearish leg could see prices potentially breaking below the 108.0 levels quite easily. To the upside, above 111.0 USDJPY will be likely struggling near the 112.5 – 112.0 levels of resistance in the near term.
USDJPY – Possible exhaustion to the downtrend
GBPUSD (1.42): Price action has been quite choppy with the downtrend showing signs of stalling. With the Stochastics closing with a higher lower against the lower low in prices, we can expect to see some upside momentum pushing prices to correct higher in the near term. However, the falling trend line needs to be broken in order to confirm an upside move in prices. With prices seen consolidating near 1.42 – 1.41 support, GBPUSD is more likely to move higher.
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