Daily Technical Report: Major And Cross Currencies - May 28, 2013

EUR/USD - European Session

The pair consolidated between 23.6% and 38.2% correction of CD Leg of the bullish harmonic Butterfly Pattern. Despite attempts to the downside yesterday, the pair is stable above 23.6% correction and residing at 1.2890. Stability above 1.2890 levels forces us to keep our positive expectations, provided that the pair stabilizes above 1.2950 to further support this outlook.

The trading range for today is among the key support at 1.2805 and key resistance at 1.3045.

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

GBP/USD

The pair failed to extend trading above 1.5130, and moved to the downside. It remained limited above Linear Regression Indicators, and breached the key resistance level of the bearish move shown on the graph. Trading above 1.5035 is positive and might trigger an upside correction. We also find Stochastic is supporting our expectations.

The trading range for today is among key support at 1.492,0 and key resistance at 1.5220.

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

USD/JPY

The pair moved to the upside in response to the oversold signals shown on Stochastic. Meanwhile we find it stabilizing below Linear Regression Indicators and 102.50 forcing us to hold on to our negative expectations, where we think that the pair entered a bearish correction within the general ascending channel. Trading below 101.70 again might confirm the downside move.

The trading range for today is among key support at 100.00 and key resistance at 102.80.

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 rebounded to the upside from levels around the first target of the bearish harmonic Butterfly Pattern in response to the intraday oversold signals on Stochastic. The RSI still tends to the downside, and the pair is stable below 23.6% correction of CD Leg at 0.9700. We think that the bearish correction isn’t over, and it’s likely to see a new negative divergence. Stability below 0.9775 levels is required to support this outlook.

The trading range for today is among key support at 0.9540 and key resistance at 0.9775.

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

USD/CAD

The pair’s trading still tends to the upside, due to stability above 1.0270 and being in an ascending channel. Linear Regression Indicators extended positivity. Trading above 1.0300 levels today will keep the upside move valid.

The trading range for today is between the key support at 1.0215, 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 trading precisely at the bearish channel's resistance which, according to classic technical analysis, could trigger a new downside trend. The pair's stability above linear regression indicators could cause a bullish surge if 0.9690 is breached. Since the Risk/Reward Ratio is in convenient zones, we suggest a downside movement, provided that the pair steadies below 0.9690.

The trading range expected today is between the key support at 0.9495, and the key resistance of 0.9880.

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

NZD/USD

The key level of 0.8065 has proven its worth by stopping all of the NZD/USD's bearish attempts. Trading below this level is an impetus of a intraday bullish correction on the sidelines of the overall bearish trend.

Trading range expected today is between the key support at 0.7920, and the key resistance of 0.8225.

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