Daily Technical Report: June 6, 2013

EUR/USD - U.S. Session

The pair managed to stabilize above 1.3110 represented in 78.6% correction of CD Leg of the bullish harmonic Butterfly Pattern, which is considered positive and might extend bullishness. The pair is targeting levels 1.3150, while stabilizing above 1.3080 is significant for the rest of the day.

The trading range for today is among the key support at 1.2960, and key resistance at 1.3200.

The general trend over short term basis is to the downside, targeting 1.2560 as far as areas of 1.3270 remain intact.

GBP/USD

The pair is moving to the upside, benefiting from stabilizing above 61.8% correction earlier where it reached 78.6% correction residing at 1.5480. Breaching 1.5480 is significant to prove extending the current bullish wave.

The trading range for today is among key support at 1.5305, and key resistance at 1.5605.

The general trend over short term basis is to the downside as far as areas of 1.5770 remains intact, targeting 1.4355.

USD/JPY

The pair is trading close to key support level of the ascending channel, whereas it touched levels close to support 98.80 then stabilized again above 99.00. The bullish support level proved its strength, but at the same time the pair didn’t take an upside move. This forced us to be neutral in the U.S. session report, as we wait to see how the pair would react with the upside key support.

The trading range for today is among key support at 98.05, and key resistance at 100.85.

The general trend over short term basis is to the upside as far as areas of 96.50 remain intact, targeting 105.60.

USD/CHF

The pair’s weak trading remained negative as the pair stabilized below 61.8% of CD Leg of the bearish harmonic Butterfly Pattern. As per the technical harmonic analysis, stability below the referred to correction indicates further bearishness in an attempt to test levels around 78.6% and 88.6% correction, and in this case the possibility of testing 0.9370 and perhaps 0.9315 levels.

The trading range for today is among key support at 0.9315, and key resistance at 0.9540.

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

USD/CAD

The pair dropped sharply, but remained limited above the level we are counting on today - 1.0300. Trading above 1.0300 levels forces us to hold on to our intraday negative expectations.

The trading range for today is between the key support at 1.0185, and the key resistance at 1.0540.

The general trend over short term basis is to the upside, with steady daily closing above levels 0.9800 targeting 1.0485.

AUD/USD

The AUD/USD exchange value has dropped to a steady position below 0.9535, 224% Fibonacci, as shown on the weekly chart. Stabilizing below that level is reason to believe more bearishness is to come, meant to test 0.9360 in the least. Linear regression indicators support our outlook, and although momentum indicators reflect AUD/USD overbought signals, they remain positive thus far.

Trading range expected today is between the key support at 0.9360, and the key resistance 0.9600.

Short-term trend is downside, targeting 0.9400 if 1.0710 remains intact.

NZD/USD

The NZD/USD declined sharply on Wednesday, and on Thursday it is revolving around 0.7920, or 61.8% correction, as shown on the graph above. Linear regression indicators are negative, signaling the potential continuation of the downtrend. Nevertheless, Risk/Reward Ratio is disadvantageous and the reason we decided to assume a neutral position.

Trading range expected today is between the key support at 0.7800, and the key resistance 0.8065.

Short-term trend is downside, targeting 0.7715 if 0.8400 remains intact.