Daily Technical Report: EUR/USD Trading To The Upside

EUR/USD - European Session
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The pair dropped and failed to consolidate above 1.3115, as Linear Regression Indicators turned negative. Stability below the mentioned level represented in 38.2% correction is negative and might extend the downside move to test levels close to 1.2970 representing key ascending support and 23.6% correction shown on graph. We will ignore the oversold signals shown on Stochastic due to stability below 1.3115.

The trading range for today is among the key support at 1.2970 and key resistance at 1.3230.

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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The pair dropped again after failing to stabilize above 1.5470 and now trading with negative bias in an attempt to touch 50% correction at 1.5370 shown on graph. Breaking 1.5375 is significant to prove the extension of the downside move, meanwhile trading below 1.5470 keeps the bearish possibility.

The trading range for today is among key support at 1.5290 and key resistance at 1.5605.

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 fluctuated during yesterday’s session, despite moving to the upside Stochastic offered a negative crossover that forced us to be neutral in the U.S. session yesterday. The pair is currently stable below Linear Regression Indicators and Stochastic is still showing the same negative bias. Meanwhile, the pair is stable above 97.55 levels forcing us to be neutral to see how the pair would react around the referred to level.

The trading range for today is among key support at 95.50 and key resistance at 99.30.

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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The pair stabilized above 78.6% correction of CD Leg of the AB=CD bearish harmonic Pattern and above Linear Regression Indicators, as it is currently hovering around the ascending harmonic support. The previous signals conflict with overbought signals on Stochastic so we need to confirm the trend by proving stability above the bullish key support and above 0.9340 to end the technical bearish harmonic pattern effect. In fact, the pair failed our intraday expectations yesterday and achieved four-hour closing above 0.9380, meanwhile the pair failed to move to the upside. Therefore, we prefer to remain neutral in the European session waiting for new confirmation signal.

The trading range for today is among key support at 0.9210 and key resistance at 0.9525.

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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Once again, resistance level 1.0530 proved its strength as the pair returned lower during the U.S. session yesterday after attempting to breach the resistance but failed. Stability below 1.0530 forces us to hold on to our expectations of a downside correction, whereas this level represents the key resistance level of the ascending channel.

The trading range for today is between the key support at 1.0355 and the key resistance at 1.0595.

The general trend over short term basis is to the upside with steady daily closing above levels 1.0100 targeting 1.0775.
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AUD/USD
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The AUD/USD pair's trading has assumed a bullish bias but the Stochastic is still bearish and the Relative Strength Index hasn't yet confirmed stability above the 50-point threshold. The pair continues trading below 0.9360, maintaining chances of a downside bias, especially as it trades within a bearish channel. However, the pair is steady above Linear Regression Indicators, which means technical discrepancies are at large. Therefore, we will commit ourselves to neutrality for another day on Wednesday.

**Trading range expected today is between the key support at 0.9000 and the key resistance 0.9400.

**Short-term trend is downside targeting 0.9000 if 1.0000 remains intact.
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NZD/USD
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If the NZD/USD pair had enough bullish momentum, it would have risen, exploiting the effect of stability above 0.7715 –key direction- determining support level. However, trades sufficed with a sideways movement above just above that support. In the mean time, we cannot place our odds on a downtrend because the pair resides above the aforesaid level therefore, we will assume a neutral position on Wednesday as well, waiting for better signs to emerge.

**Trading range expected today is between the key support at 0.7525 and the key resistance 0.7885.

**Short-term trend is downside targeting 0.7590 if 0.9725 remains intact.
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GBP/JPY
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The GBPJPY pair continues to move sideways, however the trading range among the main ascending trend line and the minor descending resistance is getting narrower, and thus a breakout of this range is approaching, which will be the main catalyst for the next potential move. We prefer to remain on hold, until a clear breakout signal occurs.

EUR/JPY
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The EURJPY pair maintains the slight downside bias, however price action remains indecisive, and this is clear on the past few daily candles. The pair remains below the key resistance area at the 50-days SMA and the descending resistance of the bearish move, if price fails to break this resistance and head back to break 125.00 support, that would complete a head and shoulders pattern and signal a major downside breakout. However, for now, the bias remains neutral.

EUR/GBP
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The EURGBP pair is breaking lower, dipped below the main ascending trend line shown on image, and attempting to break the latest swing low at 0.8470, threatening our overall bullish scenario. We will move to the sidelines this morning. and monitor price action around this area.