Daily Technical Report: Major And Cross Currencies - May 27, 2013

EUR/USD - Weekly Report

The pair has steadied below 23.6% correction at 1.2970 as shown on the graph, despite the intraday positivity and failure to stabilize below the key ascending support level. Linear Regression Indicators are leaning towards negativity, and the pair have not been making bullish attempts yet. We opt neutrality as the best stance, as the trend throughout the week relies on how the pair reacts around the key level 1.2970.

The trading range for this week is between the key support at 1.2560, and key resistance at 1.3115.

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 rebounded to the upside at the end of last week, but Linear Regression Indicators still tend to be negative. The pair is still affected by breaching the minor ascending channel as shown on the graph. As for this week, trading below 1.5220 levels could bring back the downside move any moment, while stability below 1.5185 represented in Linear Regression Indicator 34 might be more negative.

The trading range for this week is among key support at 1.4825 and key resistance at 1.5275.

The general trend over short term basis is to the downside as far as areas of 1.5610 remains intact targeting 1.4920.

USD/JPY

The pair extended the downside move within the general ascending channel, and we think the bearish move will extend this week as it is targeting to retest, break and consolidate below 99.85 levels. Trading below 102.50 causes us to hold on to our bearish correction expectations.

The trading range for this week is among key support at 99.30 and key resistance at 103.45.

The general trend over short term basis is to the upside as far as areas of 97.00 remain intact targeting 105.60.

USD/CHF

The downside correction started as expected. The pair was affected by the bearish harmonic Butterfly Pattern that might retest key resistance level of the descending channel that was previously breached. The overall upside move is still valid, but didn’t prove the end of the bearish correction’s effect. This makes us expect more of the downside move this week. Stability below 0.9610 might support this negative outlook, while stability below 0.9770 is significant to keeping our expectations.

The trading range for this week is among key support at 0.9270 and key resistance at 0.9515.

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

USD/CAD

The pair consolidated above 1.0270 levels, which is positive supported by Linear Regression Indicators. The pair is moving within an ascending channel towards more bullishness during this week, as shown on the graph to test key resistance level of this channel around 1.0430. Failing to stabilize above 1.0430 might cause some bearish correction before extending positivity.

The trading range for this week is between the key support at 1.0200, 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 is downside biased, affected by the bearish channel shown on the graph above. That channel enables any trade below 0.9825 with a 4-hour candlestick closing to boost chances for the extension of the downtrend. Although momentum indicators are reflecting oversold signals, the negative linear regression indicators make us overlook these signals.

Trading range expected this week is between the key support at 0.9365, and the key resistance 0.9900.

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

NZD/USD

The NZD/USD's donwtrend has stopped in zones around 50% correction, influenced by the psychological barrier 0.8000. However, momentum indicators are feeding the negative pressure upon the pair's trading, which revved up after breaking the bullish channel's lower line. We believe an upside correction is likely this week, provided that the pair settles above 0.8000. If the pair settles below 0.8310 after that correction is over, the bearishness may come back to dominate the overall trend of the pair.

Trading range expected this week is between the key support at 0.7920, and the key resistance 0.8355.

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

GBP/JPY

The GBP/JPY pair continues to move lower, resolving the bearish divergence as seen on the RSI momentum indicator. The move may extend further towards the 50-days SMA at 150.00 area, followed by the key horizontal support and previous high at 148.00. We maintain our bearish view for the pair this week as well.

EUR/JPY

The EUR/JPY pair has tentatively broken the ascending support for the rising wedge shown on the image, in addition to the 131.10 horizontal support. Holding for another day below this area (131.00) should confirm further downside, targeting mainly the 50-days SMA around 127.70 and ultimately the ascending support for the overall bullish trend, which is currently at 125.90.

EUR/GBP

The pair is attempting to move lower, for a possible retest of the broken resistance around the 0.8500 level, which should form a support and floor for dips. The price should resume the bullish breakout of the falling wedge pattern, towards the 0.8635 upside target. We maintain our bullish view.