Marshall Gittler
Trading Analysis
EUR/USD
EUR/USD moved lower and managed to break below the 1.3152 level (yesterday’s support). At the time of writing the pair is trading between the 1.3077 (S1) and 1.3152 (R1) levels and if selling pressure continues pushing the rate downwards I expect it to find support at the 1.3077 (S1). A clear downward break of that level would trigger extensions towards the psychological round number of 1.3000 (S2). It is worth noting that the MACD oscillator crossed below its trigger line in a bearish territory, adding significance to the negative picture of the price action.
Support: Support is found at the 1.3077 (S1) level, followed by the psychological level of 1.3000 (S2) and 1.2895 (S3) respectively.
Resistance: Resistance levels are 1.3152 (R1), followed by 1.3231 (R2) and the psychological level of 1.3300 (R3).
USD/JPY
USD/JPY continued following the upward boundary of the uptrend channel and after finding resistance near the psychological level of 100.00 (R1), moved slightly lower. If the long holders are strong enough to win the battle at that hurdle, they should target the next resistance levels of 100.84 (R2) and 101.52 (R3) next. On the other hand, if they fail to do so, a pullback towards the 99.13 (S1) is probable, since both RSI and MACD oscillators might move away from their overbought levels in the next periods (although in recent months USD/JPY has occasionally remained in technically overbought territory for significant lengths of time). On the longer time frame (daily chart), the price remains above the upper boundary of a triangle formation, adding significance to the pair’s bullish picture.
Support: Support levels are at 99.13 (S1), followed by 98.09 (S2) and the psychological level of 97.00 (S3).
Resistance: Resistance levels are the round number of 100.00 (R1), followed by the 100.84 (R2) and the 101.52 (R3) levels respectively.
GBP/USD
GBP/USD continued moving higher breaking above the 1.5569 level and confirming the end of the correction mentioned in previous comments. Currently the pair is heading towards the 1.5674 (R1) resistance level and a clear upward penetration of it should lead the price towards new short term highs. Moreover, the 20-period moving average lies above the 200-period moving average and alongside with the MACD’s positive value, they provide significance to the aforementioned scenario.
Support: Support levels are identified at 1.5569 (S1), 1.5425 (S2) and 1.5296 (S3) respectively.
Resistance: Resistance found at the levels of 1.5674 (R1), 1.5752 (R2) and 1.5840 (R3), found from the daily chart.
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