Daily Technical Report : July 05, 2013

EUR/USD - European Session
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With a daily closing below the main support line connecting the movements from the significant low of 1.2040 to the medium-term peak at 1.3710, the pair has opened door towards 1.2745 once again. Stability below EMA 10 to 80 is another technical signal that argues us to suggest potential downside wave over intraday basis, while RSI and Vortex are defiantly negative. Another breakout below 1.2830 will confirm and accelerate the bearishness.

The trading range for today is among the key support at 1.2745 and key resistance at 1.3165.

The general trend over short term basis is to the upside targeting 1.3600 as far as areas of 1.2970 remains intact.
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GBP/USD
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Prices have put in a long black candlestick pattern breaching the lower line of the above seen correctional channel after breaching 23.6% Fibonacci earlier. Hence, the path has been cleared towards 1.4830 boundaries supported by the bearishness on ADX indicators. A break below the psychological level of 1.50 will confirm the bearishness awaited over intraday and short-term basis. Of note, RSI 14 may cause some kind of fluctuation due to approaching the oversold territories.

The trading range for today is among key support at 1.4830 and key resistance at 1.5300.

The general trend over short term basis is to the upside as far as areas of 1.5150 remains intact targeting 1.5975.
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USD/JPY
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The pair has been trapped within a narrow range during the Asian session stabilizing above 61.8% Fibonacci level. The contrarian between the positivity on SMA 50-trend indicator- and Stochastic-momentum indicator- forces us to stay aside over intraday basis, noting that a break below will activate the bearishness suggested earlier once again.

The trading range for today is among key support at 98.75 and key resistance at 102.00.

The general trend over short term basis is to the downside as far as areas of 103.50 remain intact targeting 93.50.
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USD/CHF
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With a long white candlestick pattern, the pair has ended yesterday’s trading at 61.8% Fibonacci retracement of the entire decline from 0.9840 to 0.9130 zones as seen on the provided daily chart. Stability above moving averages in addition to the positivity on Stochastic and Vortex argue us to suggest potential upside move over intraday basis. A break above 0.9620 will confirm and accelerate the bullishness.

The trading range for today is among key support at 0.9430 and key resistance at 0.9760.

The general trend over short term basis is to the downside stable at levels 0.9775 targeting 0.8860.
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USD/CAD
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We will modify the key resistance level of the ascending channel as shown on graph to harmonize with the pair’s movement. Now trading above 1.0500 levels is positive and only by breaking 1.0400 levels and stabilizing below it with four-hour closing negativity will return. Therefore, we suggest an upside move again as stability above 1.0400 keeps this possibility valid, while stability above 1.0485 keeps this possibility strong.

The trading range for today is between the key support at 1.0420 and the key resistance at 1.0705.

The general trend over short term basis is to the upside with steady daily closing above levels 1.0100 targeting 1.0775.

AUD/USD
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The AUDUSD is hovering below the first tier descending trend line shown on chart above, and below 0.9190 resistance level. 0.9190 remains the main pivot for the near term bias, as a break above it would confirm a short-term bullish bounce probably towards the main descending resistance. Overall, the bearish scenario remains favored so long as 0.9190 is intact.

NZD/USD
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The recent price action suggests price could be forming a bottom, as it managed to break the descending resistance of the falling wedge pattern shown on image, however found resistance at 0.7860 key high, which is the main pivotal level. A break above 0.7860 would confirm our bullish bias.

GBP/JPY
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The GBP/JPY pair settled below 151.90 but it is still traded inside the bullish channel, shown on the above graph. Also, momentum indicators are signaling positivity, encouraging us to continue favoring an uptrend. That bullish trend requies breaching 151.90 again and stabilizing above 149.30.

**Trading range expected today is between the main support at 149.30 and the main resistance 154.65.

**Short-term trend is upside targeting 163.00 if 147.65 remains intact

EUR/JPY
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The EUR/JPY pair is fickle around the Moving Average 50 and is waiting for a confirmation to make its next move. The pair's direction can be defined by either breaking the support 128.65 – neckline of a Double-Tio Pattern – or breaching the resistance at 129.90, which is key for the positive momentum's restoration. Therefore, we will maintain neutrality on Friday as well.

**Trading range expected today is between the main support at 128.00 and the main resistance at 132.00.

**Short-term trend is upside, targeting 140.00 if 124.95 remains intact.

EUR/GBP
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Although price spiked higher yesterday, the EURGBP retreated again and failed to settle above 0.8600 key resistance level, which was our confirmation level for further upside. We will continue to monitor price action around this level.