The EURJPY pair
ended in green for the third consecutive session, closing the previous session
at 135.71 after making a high at 135.88. The oscillators on the 8H and daily
chart are attempting to regain upward momentum, however a break above the
136.00 level is required to confirm bullishness in the coming sessions. The
next potential upside targets reside at 137.20/25, followed by an important one
at 138.50/55. On the downside, key support reside at around 135.00, followed by
the next at 134.68/65 and 133.10/00 levels. A breach below the latter would trigger
further acceleration to the downside. Loss of upward potential on the hourly
chart hints at a possibility of mild correction.
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Sunday 31 May 2015
USD/CAD: Weak if breaks below 1.2400-1.2380
Even though the
USDCAD pair started the session trading higher and hit the 1.2540 level, it was
unable to sustain at higher levels and retreated to finish the session at
1.2436, forming a shooting star candlestick pattern on the daily chart. The
candle formed along with an upper Bollinger band crossover on the daily chart
hints at a possibility of a correction in the coming sessions. However, daily
MACD is attempting to stabilize in the positive territory with the RSI also
placed at a higher level, contradicting the above view. Immediate important
support resides at around 1.2382/80, a move back below which might trigger
further weakness. On the bright side, the ability to capture the 1.2500 level
on a daily closing basis would negate any weakness.
GBP/USD: Mildly positive if sustains above 1.5305/02
After recording a
bearish engulfing candlestick pattern on the daily chart in the previous week,
the GBPUSD pair continued to grind lower. In the previous session, the pair
oscillated between gains and losses, recording a small doji candlestick pattern
on the daily chart. On the 8H chart, after over extended trading of the
stochastic indicator in the oversold territory, it is now attempting to head
higher above its midline. Meanwhile, emerging signs of positive divergence
condition on the 2H MACD and RSI suggests at a possibility of mild recovery
today. However, a move back and stability above the immediate resistance of
1.5340/50 is required to confirm the same. The weekly technical picture
continues to reflect a bearish outlook.
EUR/USD: Positive if breaks above 1.1000
The EURUSD pair had
a positive showing in the previous session, ending at the 1.0949 level after
making a high at 1.0959. On the daily chart, the pair has formed a morning star
candlestick pattern. The candle formed along with a lower Bollinger band
crossover hints at a possible recovery in the coming sessions. However, a
sustained break above the psychological 1.1000 level is required to confirm the
same. On the 8H chart, the pair has broken above its 200 SMA, while its
momentum oscillators are also attempting to regain upward momentum. Continued
trading above the 1.0923/25 level would keep the near term bias positive, while
a move back below the same would negate the bullish view. Weekly price action
continues to favour a weak trend after recording a bearish engulfing
candlestick pattern in the previous week.
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