The pair has sharply descended since yesterday touching 61.8% Fibonacci correction around 1.2830 and rebound to the upside calmly, due to the positive effect of momentum indicators. We expect a breach of the previous bullish channel that holds bearish targets that have no fully been achieved yet; therefore, we expect more bearish movement today towards 1.2710, although it is vital that the four hour closing is below 1.3000.
The trading range for today is among the key support at 1.2710 and the key resistance at 1.3000.The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.
The pair headed to the downside sharply yesterday after retesting pivotal support around 1.5830 appearing in the image above, where the bearish technical pattern has been completed after breaching the neckline at 1.5710. The stochastic is showing overbought signs, thus making us expect a bearish intraday trend that targets levels 1.5510 chiefly, requiring stability below 1.5815 to prevail.
The trading range for today is among the key support at 1.5510 and the key resistance at 1.5815. The short term trend is to the downside as far as 1.6070 remains intact with targets at 1.3800.
The pair is close to touching resistance for the bearish short term channel that organizes current trading; whereas momentum indicators are nearing overbought areas, accompanied by the continuous negative pressure coming from SMA 50. These factors combined make us expect a bearish intraday overall trend; targets start at 84.70 then 84.00. Keep in mind the importance of stability below 86.15 to maintain chances of achieving these expectations.
The trading range for today is among the key support at 84.00 and the key resistance at 86.55.The short term trend is to the downside as far as 91.55 remains intact with targets at 82.60.
USDCHFThe pair closed trading between 1.0555 and 1.0610 shown in the image above, where the pair currently is attempting to rid of negative momentum appearing on the four hour timeframe to start a bullish direction, which has begun the breach of pivotal resistance at 1.0610. The bullish technical pattern encourages us to expect a bullish intraday direction; technical targets are at 1.0745 then 1.0830, but it is vital for this scenario to prevail that the four-hour closing is above 1.0490.
The trading range for today is among the key support at 1.0490 and the key resistance at 1.0830.The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.1730.
USDCADThe pair continues its upside movement in line within the bullish channel that represents the current bullish intraday direction, especially after touching resistance for this channel around 1.0485. We can expect some minor descend that will build a base on support around 1.0405 – meeting point between support for the bullish channel with 50% Fibonacci correction – before heading towards resuming the expected bullish intraday overall direction. SMA 50 and Stochastic both support the suggested upside trend, which targets 1.0500 then 1.0585. It is vital that stability is above 1.0340 for the bullish scenario to prevail.
The trading range for today is among the key support at 1.0340 and the key resistance at 1.0585.The short term trend is to the upside as far as 0.9925 remains intact with targets at 1.1485.
By: Yasir Mubarak
Senior Technical Analyst