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.
Sunday, 31 May 2015
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.
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.
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.