EUR/USD
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The pair started the week consolidating above key resistance levels that affected the pair since placing the top at 1.3711, and is also stable above 1.3315. Stability above the referred to levels force us to ignore the negative signal on Stochastic and expect to see an upside move this week. Breaking 1.3205 and stabilizing below it might change the overall trend this week from bullish to bearish.
The trading range for this week is among the key support at 1.3115 and key resistance at 1.3620.
The general trend over short term basis is sideways between 1.2775 and 1.3600 as far as they hold over daily-basis.
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The upside move last week pushed the pair to trading close to 88.6% correction at 1.5645 as shown on graph. Stochastic offers negative and overbought signals, but at the same time, Linear Regression Indicators are positive and shows that breaching 1.5645 will be followed by a new bullish wave targeting 1.5750 and perhaps 1.5875. The positive possibility will remain valid by stability above 1.5550, keeping the pair above Linear Regression Indicator 34.
The trading range for this week is among key support at 1.5390 and key resistance at 1.5875.
The general trend over short term basis is to the upside as far as areas of 1.5100 remains intact targeting 1.6010.
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The pair is trading above key resistance level of the upside move shown on graph and around 78.6% correction residing at 0.9265. Stability above the referred to level 0.9265 might trigger a bullish wave this week. Meanwhile, stability below 0.9200 will fail the suggested positivity.
The trading range for this week is among key support at 0.9130 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.
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Price is attempting to settle above 0.9200 resistance level, and the 50-days SMA, stability above this level may signal a move back towards the top of the sideways range at 0.9320-0.9345 key resistance area. However, the overall bearish wave remains intact so long as the aforementioned resistance is holding. We will wait for stability above 0.9200 to suggest an intraday bullish sceanrio, but remain neutral for the week.
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The pair is testing a major resistance area and pivotal level, which is the neckline for an inverted head and shoulders pattern as shown on the daily chart above. A break and stability above this level will confirm a medium term bullish move. However, we need to see at least a daily closing above it to reverse short to medium term outlook.