The pivotal support mentioned yesterday at 1.2175, shown strong steadiness against the negative pressure on the pair; thereby pushing it to the upside to attack resistance for the descending channel that organizes the last bearish intraday trend. ..
Signs of a bullish technical pattern are appearing on the four-hour chart, after the stability of the mentioned support. We expect a bearish intraday trend today that will start with the breach of resistance 1.2290 to head towards 1.2480 as a main target for today. Stochastic is showing overbought signs that may impede the pair’s attempts to ascend.
The trading range for today is among the key support at 1.2175 and the key resistance at 1.2480.
The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.
The pair closely neared touching yesterday’s awaited target at 1.4530, where it rebounded to the upside as the pair continues moving gradually within the ascending channel, shown in the image above, due to the positivity of the stochastic. These factors make us expect the pair to head towards retesting pivotal resistance 1.4795 once again to determine the short term direction. The expected direction for today is bullish, but may need to build a base above 1.4590 to maintain chances of achieving it.
The trading range for today is among the key support at 1.4530 and the key resistance at 1.4850.
The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.
The pair succeeded in stabilizing above the previously broken main support that has formed strong resistance in the past few days around 91.45, which has currently turned into support at 91.50. It is vital that a base is built above the MA 50 and surpass 61.8% Fibonacci correction shown above, in addition to return within the main ascending channel. These factors encourage us to expect a bullish intraday trend; targets are mainly at 93.60 – 94.00. Any daily closing below 91.50 will help us rethink at chances of trading continuing within the current upside channel.
The trading range for today is among the key support at 90.70 and the key resistance at 94.00.
The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.
The pair did not have enough positive momentum to support yesterday’s suggested scenario; therefore achieving a breach of support for the short term upside channel that has currently turned into resistance at 1.1545. Signs of a bearish technical pattern are appearing, especially after it building a base below the MA 50. We expect a breach of pivotal support at 1.1480, which in its own role will pave the way to achieve the bearish intraday direction; first main target is represented in the retest level 1.1380 – the breached medium term resistance channel in the 14th of May -. The awaited bearish scenario today will remain intact if we do not witness the four hour closing above 1.1545.
The trading range for today is among the key support at 1.1380 and the key resistance at 1.1685.
The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2000.
The shaded downside channel in yellow shown in the image above, has taken control over the pair’s trading yesterday as it strongly pushes to the downside heading towards support for the short term ascending channel at 1.0285. This down trend will maintain natural trading within the mentioned ascending channel. Several negative factors, starting from the descending intraday channel and the breach of MA 100, in addition to the breach of 61.8% Fibonacci correction, make us maintain expectations of a bearish intraday direction; targeting first 1.0285. Keep in mind that the importance of observing the pair and the importance of the pair’s actions when reaching the mentioned target, since breaching it will pave the way towards 1.0000.
The trading range for today is among the key support at 1.0200 and the key resistance at 1.0500.
The short term trend is to the upside as far as 0.9925 remains intact with targets at 1.1485.
By: Yasir Mubarak
Main Technical Analyst