Daily Technical Report: EUR/USD A Bearish Possiblity?

EUR/USD - European Session
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The pair remained within a very tight range above support level 1.3315 and below resistance level 1.3400 yesterday and in the Asian session today. Stochastic is showing a negative crossover and perhaps another bearish possibility. Of note, stability above 1.3400 levels can fail any intraday downside move today.

The trading range for today is among the key support at 1.3485 and key resistance at 1.3440.

The general trend over short term basis is sideways targeting 1.2775 as far as 1.3600 is daily-closing.

GBP/USD
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The pair stabilized below 78.6% correction at 1.5550 shown on graph. Stability below the referred to level shows the possibility of a downside move today especially that RSI is heading towards line 50 to the downside in an attempt to break it. Stochastic is showing intraday oversold signals, but we will ignore these signals as long as the pair stabilizes below the referred to correction 78.6%.

The trading range for today is among the key support at 1.5390 and key resistance at 1.5605.

The general trend over short term basis is to the upside as far as areas of 1.5100 remains intact targeting 1.6010.

USD/JPY
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The downside move extended and approached 61.8% correction at 96.75 again and rebounded to the upside. The current bullish rebound is a response to the oversold signals as shown on momentum indicators. Linear Regression Indicators are negative and the pair is within the descending channel shown on graph, therefore we will hold on to our negative expectations as long as the pair stabilized below 38.2% correction at 98.60. Breaking 96.75 triggers a stronger bearish wave.

The trading range for today is among key support at 95.45 and key resistance at 98.60.

The general trend over short term basis is to the downside as far as areas of 103.50 remain intact targeting 93.50.

USD/CHF
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The pair managed to consolidate below 88.6% correction at 0.9205. Stability below the referred to level is accompanied trading below Linear Regression Indicators. These catalysts forces us to think that the downside move might extend and the first technical targets resides at the previous bottom at 0.9132 followed by 131% correction at 0.9050 shown on graph. The downside move requires stability below 0.9265 at 78.6%.

The trading range for today is among key support at 0.9050 and key resistance at 0.9265.

The general trend over short term basis is to the downside stable at levels 0.9775 targeting 0.8860.

USD/CAD
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The pair stabilized below 23.6% correction of CD Leg of the bearish harmonic Bat Pattern whereas the possibility of achieving the first target of the pattern is valid by further bearishness to touch 1.0455 levels. Breaking the referred to level and stabilizing below it could push the pair further to the downside; if the pair managed to break 1.0455 and stabilize below it then further bearishness towards the second target at 1.0385 represented in 61.8% of the referred to leg passing by 505 correction shown on graph is possible. Anyhow, trading below bottom D at 1.0565 will be considered negative.

The trading range for today is between the key support at 1.0385 and the key resistance at 1.0565.

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 pair completed a minor correction towards 0.9000 level yesterday, before heading lower again, resuming the bearish bias and acquiring 0.8935 first target. Further downside remains the most likely scenario,as price breaks below the previous low at 0.8930, eying 0.8845 as the next main downside target.

NZD/USD
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The pair remained under pressure, however found some support near the bottom of the overall sideway range, while RSI is showing a bullish divergence, accordingly, we prefer to be cautious at the current levels, as a minor rebound is possible. A break below 0.7735 will confirm a move to 0.7680 key low and floor of the sideways range, while above 0.7810 to 0.7870.