Admiral Markets
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Technical Overview - EURUSD, GBPUSD, USDJPY, NZDUSD, AUDUSD
The US Dollar gained against GBP, JPY and NZD but lost some ground against EUR and AUD on the first trading day of the week, which is full of important economic releases. Investors will now focus on Federal Reserve Chairwoman Janet Yellen's testimony and the release of retail sales data, scheduled later on Tuesday. Given the backdrop, here is a technical overview for some important major currency pairs - EURUSD, GBPUSD, USDJPY, NZDUSD and AUDUSD.
EURUSD
On Tuesday, the pair dropped below 1.3600 mark, moving closer to 1.3580-70 important support area. As could be seen on 4-hourly chart, the pair is forming a bearish chart pattern, Head & Shoulders with neck-line support coinciding with 1.3580-70 support area. Hence, a break below this important support area, seems to trigger additional near-term weakness for the pair initially towards 1.3530 horizontal support and further towards 1.3450 support, which also happens to be the target of the bearish chart pattern. However, only a move back above 1.3650-60 resistance zone, could possibly negate the short-term bearish outlook for the pair.
GBPUSD
Following the release of higher-than-expected CPI figure, the pair rebounded from 1.7060-50 support area, comprising of the lower trend-line support of a short-term descending trend-channel formation on 4-hourly chart and 23.6% Fib. retracement level. The pair is currently trading near the upper trend-line resistance of the descending channel near 1.7150 level. Should the pair manage to decisively clear this resistance area, the pair then seems to easily surpass 1.7200 round figure mark and continue appreciating in the near-term towards 1.7400 area. Alternatively, should the pair starts reversing from current resistance level and drop back below 1.7110-1.7100 immediate horizontal support, it might drop below 1.7060-50 important support and continue dropping towards 1.7000 round figure mark, also coinciding with 38.2% Fib. retracement level.
USDJPY
The pair continues with its range-bound trade and is not indicating a clear directional move. However, considering the formation of a descending triangle on daily chart and decisive trade below 200-day and 100-day SMA probably suggests a break on the downside. However, the upcoming bearish move could be confirmed only once the pair decisively breaks below 101.00-100.80 important support area, the horizontal line support forming part of the descending triangular formation. A decisive break below this horizontal line support is likely to confirm continuation of the near-term downtrend towards testing sub-100.00 psychological level. However, a move back above 102.00-102.10 confluence zone, comprising of 200-day, 100-day SMA and a descending trend-line (forming part of the descending triangle), could possibly negate the short-term bearish outlook for the pair.
NZDUSD
After nearly retesting July 2011 highs, also marking 61.8% Fib. expansion level, the pair is witnessing some profit taking moves. The current pull-back could possibly get extended till a short-term ascending trend-line support near 0.8750, should the pair break below 0.8800 round figure mark. Further a break below 0.8750 support could possibly trigger some additional depreciating move towards 0.8680-0.8660 horizontal support area. Meanwhile, only a move back above 0.8840-50 resistance zone would confirm continuation of the ongoing upward momentum and the pair might continue appreciating in the near-term even beyond 0.9100 mark, representing 100% Fib. expansion level.
AUDUSD
The pair is currently trading very close the a short-term ascending trend-line support, which if decisively breached could force the pair to retest the break-out point, currently near 0.9300 round figure mark. Further, a drop below 0.9300 support could increase the vulnerability of the pair and the pair could possibly witness further corrective move towards 0.9200 support area. Alternatively, a bounce back from current levels and strength above 0.9400 mark has the potential to boost the pair back towards 0.9500 mark and continue its short-term trajectory towards 0.9600 level.
“Original analysis is provided by Admiral Markets”
The US Dollar gained against GBP, JPY and NZD but lost some ground against EUR and AUD on the first trading day of the week, which is full of important economic releases. Investors will now focus on Federal Reserve Chairwoman Janet Yellen's testimony and the release of retail sales data, scheduled later on Tuesday. Given the backdrop, here is a technical overview for some important major currency pairs - EURUSD, GBPUSD, USDJPY, NZDUSD and AUDUSD.
EURUSD
On Tuesday, the pair dropped below 1.3600 mark, moving closer to 1.3580-70 important support area. As could be seen on 4-hourly chart, the pair is forming a bearish chart pattern, Head & Shoulders with neck-line support coinciding with 1.3580-70 support area. Hence, a break below this important support area, seems to trigger additional near-term weakness for the pair initially towards 1.3530 horizontal support and further towards 1.3450 support, which also happens to be the target of the bearish chart pattern. However, only a move back above 1.3650-60 resistance zone, could possibly negate the short-term bearish outlook for the pair.
GBPUSD
Following the release of higher-than-expected CPI figure, the pair rebounded from 1.7060-50 support area, comprising of the lower trend-line support of a short-term descending trend-channel formation on 4-hourly chart and 23.6% Fib. retracement level. The pair is currently trading near the upper trend-line resistance of the descending channel near 1.7150 level. Should the pair manage to decisively clear this resistance area, the pair then seems to easily surpass 1.7200 round figure mark and continue appreciating in the near-term towards 1.7400 area. Alternatively, should the pair starts reversing from current resistance level and drop back below 1.7110-1.7100 immediate horizontal support, it might drop below 1.7060-50 important support and continue dropping towards 1.7000 round figure mark, also coinciding with 38.2% Fib. retracement level.
USDJPY
The pair continues with its range-bound trade and is not indicating a clear directional move. However, considering the formation of a descending triangle on daily chart and decisive trade below 200-day and 100-day SMA probably suggests a break on the downside. However, the upcoming bearish move could be confirmed only once the pair decisively breaks below 101.00-100.80 important support area, the horizontal line support forming part of the descending triangular formation. A decisive break below this horizontal line support is likely to confirm continuation of the near-term downtrend towards testing sub-100.00 psychological level. However, a move back above 102.00-102.10 confluence zone, comprising of 200-day, 100-day SMA and a descending trend-line (forming part of the descending triangle), could possibly negate the short-term bearish outlook for the pair.
NZDUSD
After nearly retesting July 2011 highs, also marking 61.8% Fib. expansion level, the pair is witnessing some profit taking moves. The current pull-back could possibly get extended till a short-term ascending trend-line support near 0.8750, should the pair break below 0.8800 round figure mark. Further a break below 0.8750 support could possibly trigger some additional depreciating move towards 0.8680-0.8660 horizontal support area. Meanwhile, only a move back above 0.8840-50 resistance zone would confirm continuation of the ongoing upward momentum and the pair might continue appreciating in the near-term even beyond 0.9100 mark, representing 100% Fib. expansion level.
AUDUSD
The pair is currently trading very close the a short-term ascending trend-line support, which if decisively breached could force the pair to retest the break-out point, currently near 0.9300 round figure mark. Further, a drop below 0.9300 support could increase the vulnerability of the pair and the pair could possibly witness further corrective move towards 0.9200 support area. Alternatively, a bounce back from current levels and strength above 0.9400 mark has the potential to boost the pair back towards 0.9500 mark and continue its short-term trajectory towards 0.9600 level.
“Original analysis is provided by Admiral Markets”