The pair was able to achieve the suggested bearish scenario yesterday as it neared the initial key target around 1.2570, but managed to currently push for some bullish correction due to the positive signs which are appearing on momentum indicators that we think will build a base on 1.2685, before heading towards resuming the expected bearish intraday direction. The upcoming targets are around 1.2470, which require the daily closing below 1.2730 – 1.2770 to prevail.
The trading range for today is among the key support at 1.2470 and the key resistance at 1.2770.The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.
GBPUSDThe pair succeeded in achieving yesterday’s midday scenario after breaching pivotal support 1.5530, in addition to breaching support for the bearish channel that controls trading since support for the previous bullish short term direction that had been breached. Some fluctuation is possible with some minor bullish correction expected, but in overall we expect more bearish intraday movement that targets 1.5360 then towards 1.5185. Keep in mind the resuming these expectations require the daily closing below 1.5530.
The trading range for today is among the key support at 1.5235 and the key resistance at 1.5600.The short term trend is to the downside as far as 1.6070 remains intact with targets at 1.3800.
USDJPYThe pair managed to breach support for the sideway range 85.15 to activate yesterday’s suggested scenario; therefore, we expect the pair to head towards achieving the bearish intraday direction that targets initial targets between 84.25 – 84.00 to retest resistance for the previously breached channel. We point out that the breach of 85.15 and building a base above it will postpone resuming the suggested bearish targets and cause sideway trading to return.
The trading range for today is among the key support at 83.00 and the key resistance at 86.00.The short term trend is to the downside as far as 91.55 remains intact with targets at 82.60.
USDCHFThe pair is trading according to yesterday’s suggested scenario and nearing the initial key target a pivotal resistance 1.0460, thereby helping the minor bullish technical pattern’s pair to push to the upside and be completed, especially since its neckline has been breached at 1.0390. The pair is currently finding a hard time surpassing SMA 50 due to the negative effect of momentum indicators; thus, causing some fluctuation at current levels to gain enough bullish momentum to support the pair towards resistance for the sideway bearish channel at 1.0580. From here, we can expect a bullish overall trend for today that requires two factors to prevail; first, a clear breach of 1.0460 and second is ,stabilizing above 1.0320.
The trading range for today is among the key support at 1.0200 and the key resistance at 1.0460.The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.1730.
USDCADThe pair achieved yesterday’s expectations flawlessly, building a base on 1.0440 to retest this level successfully and then push to the upside. This ascend has taken path within the bullish channel sharply shown above; whereas momentum indicators are currently showing overbought signs that will force the pair to achieve some bearish movement touching through it support for these bullish channel at 1.0525, before heading towards resuming more expected bullish movement for today. Keep in mind that for the expected bullish direction to continue it requires the daily closing to build a base above 1.0435.
The trading range for today is among the key support at 1.0425 and the key resistance at 1.0745.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