Technical Outlook, Strategies & Commentaries On The Major Currencies

[FXTechstrategy Team 10]

USDJPY: With the pair holding on to its medium term upside, it looks to return to the 84.60 level. A breach of here will call for a run at the 85.00 level where a violation will turn attention to the 86.00 level and possibly higher towards the 87.00 level, all representing its psycho levels. Its daily RSI is bullish and pointing higher supporting this view. On the downside, support lies at the 84.17 level followed by the 82.82 level where a reversal of roles as support is likely to occur. However, if this fails, support lies at the 81.44 level where a breach if seen will target the 80.63 level. All in all, USDJPY remains biased to the upside in the medium term.

 

[FXTechstrategy Team 10]

USDJPY: Broadly Biased To The Upside.

 

USDJPY: With the pair holding on to its bullish strength triggered off the 77.13 level, its Sept’2012 low, there is risk of further upside in the medium term. This leaves USDJPY targeting the 85.49/74 levels where its weekly ema/April 2011 high are located. A decisive violation of here will turn attention to the 86.88 level and possibly higher towards the 87.50 level. Its weekly RSI is bullish and pointing higher supporting this view. On the downside, support comes in at the 84.17 level followed by the 82.82 level where a reversal of roles as support is likely to occur. However, if this fails, the 81.44 level will be aimed at. All in all, USDJPY remains biased to the upside in the medium term.

 

 

[FXTechstrategy Team 10]

EURUSD: Having followed through higher on the back of its Tuesday gains in early trading today, EUR looks to extend its bullish offensive. In such a case, the 1.3307 level, representing its Dec 2012 high will be aimed at with a violation of here targeting further upside towards the 1.3350 level. Further out, resistance resides at the 1.3400 level, its psycho level. Its daily RSI is bullish and pointing higher supporting this view. On any pullback back from its present price levels, it will target the 1.3158 level, its Dec 21’2012 low. Further down, support comes in at 1.3000 level and then the 1.2822 level. All in all, EUR faces further upside threats with eyes on the 1.3307 level.

 

[FXTechstrategy Team 10]

USDCHF: The pair continues to face downside pressure as it closed lower suggesting further declines could be building up. If this is triggered further weakness will aim at the 0.9041 level where a breach will turn attention to the 0.9000 level. Price hesitation may occur here due to its psychological importance. However, if taken out, USDCHF will target the 0.8929 level. Its weekly RSI is bearish and pointing lower supporting this view. On the upside, the pair will have to return above the 0.9382 level to annul its present downside pressure. This if seen will bring further upside offensive towards the 0.9456 level followed by the 0.9511 level and then the 0.9606 level. On the whole, the pair remains biased to the downside in the short term below its trendline resistance.

 

[FXTechstrategy Team 10]

EURUSD: Despite its consolidation the past week, it managed to close higher, opening the door for a move higher towards the 1.3307 level, representing its Dec 2012 high. A break of here will target further upside towards the 1.3350 level. Further out, resistance resides at the 1.3400 level, its psycho level and possibly the 1.3500 level. Its daily RSI is bullish and pointing higher supporting this view. On any pullback back from its present price levels, EUR will aim at the 1.3158 level, its Dec 21’2012 low. Further down, support comes in at 1.3000 level and then the 1.2822 level. All in all, EUR faces further upside threats with eyes on the 1.3307 level and beyond.

 

[FXTechstrategy Team 10]

US Dollar Index: With the Index remaining biased to the downside, the risk is for it to return to the 78.53/60 levels. A violation of this level will call for a run at its psycho level at 76.00 level with a break of here turning attention to the 75.00 level and then the 74.00 level, all representing its psycho level. The alternative scenario will be for the Index to return to the 80.09/49 levels. Further out, resistance resides at the 81.18 level with a break above here allowing for more upside towards the 82.72 level. All in all, the Index continues to face downside vulnerability in the short term.

 

[FXTechstrategy Team 10]

EURUSD: With EUR on the verge of resuming its broader upside following its early morning rally, further upside offensive is expected in the days ahead. This leaves it targeting the 1.3307 level. Further out, resistance resides at the 1.3350 level followed by the 1.3400 level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, support comes in at the 1.3171/25 levels where a reversal of roles is likely to occur and turn it higher again. Further down, support is seen at the 1.3100 level followed by the 1.3000 level. All in all, EUR continues to retain its broader medium term upside bias.

 

[FXTechstrategy Team 10]

USDJPY: A strong rally has seen the pair reversed its Thursday losses and opened the door for more gains in the days ahead. This development leaves USDJPY targeting the 89.00 level, its psycho level with a violation of there paving the way for more upside towards the 89.50 level and then the 90.00 level. Further out, resistance resides at the 90.50 level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, support comes in at the 86.78 level where a reversal of roles is likely to occur and turn the pair back up. However, a cut through here if seen will set the stage for more declines towards the 85.65 level. Further down, support comes in at the 85.00 level. All in all, USDJPY continues to retain its medium term uptrend.

 

[FXTechstrategy Team 10]

EURGBP- Having halted its corrective declines and turned higher for a third-day in a row, the risk is for more upside to occur. This development now leaves the cross threatening further upside with possibility of returning to the 0.8186 level on the cards. A cut through here will call for a run at the 0.8224 level. Above here could pave the way for a run at the 0.8300 level. Alternatively, support lies at the 0.8104 level and the 0.8067 level where its trendline is located. Further down, the cross will have to break and hold below its trendline support (red) to put its broader upside bias in danger. In such a case, the 0.7960 level will be targeted. All in all, the cross remains biased to the upside having ended its correction.

 

[FXTechstrategy Team 10]

EURUSD: EUR may have closed slightly lower the past week but continues to hold on to its medium term uptrend. It looks to extend its strength through its resistance at the 1.3403 level. If this is seen, further upside is likely towards the 1.3500 level followed by the 1.3480 level. Its weekly RSI is bullish and pointing higher supporting this view. Conversely, on any pullback, the pair will aim at 1.3256 level where a violation will call for a run at the 1.3200 level. Further down, support comes in at the 1.3150 level and then the 1.3100 level. All in all, EUR continues to retain its broader medium term upside bias.

 

[FXTechstrategy Team 10]

USDCHF: With the pair turning lower and holding below its broken trendline, further decline is expected especially now that it has reversed its corrective recovery. The challenge is for it to break decisively below the 0.9082 level though closing lower below there by a pip the past week. Further down, support comes in at the 0.8950 level followed by the 0.8900 level. Price hesitation may occur here due to its psychological importance. If broken, further decline will occur towards the 0.8800 level. Its weekly RSI is bearish and pointing lower supporting this view. Conversely, the pair will have to break and hold above the 0.9388 level to reverse its entire weakness. This if seen will aim at the 0.9400 level followed by the 0.9456 level. Further out, resistance resides at the 0.9511 level. On the whole, the pair remains biased to the downside medium term

 

[FXTechstrategy Team 10]

USDCHF: While USDCHF may have halted its medium term downtrend and turned higher on correction the past week, its declining trendline stands in its way on further recovery. As long as the 0.9290/90 levels hold as supports, a return to the 0.9082 level cannot be ruled out. If this occurs, expect further declines to occur towards the 0.9000 level followed by the 0.8950 level and next the 0.8900 level. Price hesitation may occur here due to its psychological importance. If broken, further declines will occur towards the 0.8800 level. Conversely, the pair will have to break and hold above the 0.9290/92 levels to create scope for more upside towards the 0.9388 level. This if seen will aim at the 0.9400 level followed by the 0.9456 level. On the whole, the pair may be recovering but continues to hold on to its broader medium term downside bias.

 

USDCHF: While USDCHF may have halted its medium term downtrend and turned higher on correction the past week, its declining trendline stands in its way on further recovery. As long as the 0.9290/90 levels hold as supports, a return to the 0.9082 level cannot be ruled out. If this occurs, expect further declines to occur towards the 0.9000 level followed by the 0.8950 level and next the 0.8900 level. Price hesitation may occur here due to its psychological importance. If broken, further declines will occur towards the 0.8800 level. Conversely, the pair will have to break and hold above the 0.9290/92 levels to create scope for more upside towards the 0.9388 level. This if seen will aim at the 0.9400 level followed by the 0.9456 level. On the whole, the pair may be recovering but continues to hold on to its broader medium term downside bias.

 

[FXTechstrategy Team 10]

AUDUSD: As indicated in our weekly outlook, AUDUSD extended its broader medium term weakness during Monday trading today. With the pair now holding below the 1.0200 level and testing a low of 1.0114 level, there is risk of further downside pressure. The immediate support resides at the 1.0100 level where a break will target its big psycho level at the 1.0000 level. A breather could occur here and turn it higher. Its daily RSI is bearish and pointing lower supporting this view. On the upside, the pair will have to return above the 1.0200 level to reduce its present downside pressure. This if seen will call for a run at the 1.0250 level and then the 1.0300 level. Further out, resistance comes in at the 1.0374 level. All in all, the pair remains vulnerable to the downside on further weakness.

 

[FXTechstrategy Team 10]

USDJPY: With a rally seeing the pair strengthening further during Friday trading session, further upside offensive looks to target the 99.94 level. Above here is required to resume its medium term uptrend towards the 100.50 level. We may see a pullback from here but if broken, further upside could follow towards the 101.00 level and then the 101.50 level. Its daily RSI is bullish and pointing higher suggesting further upside. Support comes in at the 97.63 level where a violation will target the 96.00 level and then the 95.00 level. All in all, USDJPY remains biased to the upside medium term with eyes on the 99.93 level.

 

[FXTechstrategy Team 10]

USDJPY: Maintains Short Term Uptrend.

 

USDJPY: We continue to hold our upside bias on USDJPY despite its price hesitation risk. On ending its present pullback, it should retake the 100.60 level. A violation of here will aim at the 101.52 level. Further out, resistance resides at the 102.00 level. Conversely, support lies at the 98.00 level where a break will aim at the 97.00 level. Further down, support comes in at the 96.56/18 levels. Below here if seen will aim at the 95.00 level where a violation will aim at the 94.50 level. On the whole, USDJPY remains exposed to further upside.

 

[FXTechstrategy Team 10]

USDCHF: Weakens For Two Weeks In A Row.

 

USDCHF – With a second week of decline occurring the past week, there is risk of a return to the 0.9000 level. A violation of here will turn attention to its Oct 2013 low at the 0.8889 level. Further down, support lies at the 0.8750 level followed by the 0.8700 level. Its weekly RSI is bearish and pointing lower supporting this view.On the other hand, to resume its recovery triggered off the 0.8889 level now on hold, the pair will have to take out the 0.9249 level. This if seen will aim at the 0.9454 level. A cut through here will pave the way for a push towards the 0.9496 level and possibly higher towards the 0.9750 level. On the whole, the pair remains biased to the downside in the medium term.

 

[FXTechstrategy Team 10]

AUDUSD: Faces Further Bearishness.

 

AUDUSD: Having continued to weaken, we see risk of further downside towards the 0.9000 level where a break will target further downside towards the 0.8950 level. Further down, support stands at the 0.8900 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, resistance resides at the 0.9150 level followed by the 0.9202 level. A cut through here will aim at the 0.9250 level. Further out, resistance comes in at the 0.9300 level. All in all, the pair remains biased to the downside.

 

[FXTechstrategy Team 10]

USDCAD: Bullish, Targets Further Upside.

 

USDCAD: With USDCAD retaining its bullish bias, further strength is envisaged. This development leaves the pair targeting the 1.0608 level with a break paving the way for a run at the 1.0650 level. If USDCAD pushes through here, the 1.0700 level will be aimed at. Its daily RSI is bullish and pointing higher supporting this view. Conversely, support lies at the 1.0525 level where a reversal of roles is likely. Further down, support comes at the 1.0400 level with a violation targeting the 1.0350 level. A break through here will aim at the 1.0300 level and then the 1.0244 level. All in all, USDCAD now faces further upside threats.

 

[FXTechstrategy Team 10]

EURUSD: With continued bullish tone still intact., further upside could follow in the new week. However, it will have to take out the 1.3600 level to prevent a return to the 1.3295 level. Further out, resistance resides at the 1.3650 level where a break will aim at the 1.3710 level. Price hesitation may occur here but if violated it will target the 1.3800 level. Conversely, support lies at the 1.3300 level with a break turning focus to the 1.3250 level and possibly lower towards the 1.3200 level. We may see bulls come in here and turn the pair higher but further decline is seen expect a move lower towards the 1.3100 level. All in all, EUR remains biased to the upside in the medium.

 

[FXTechstrategy Team 10]

GBPUSD: Bullish, Remains On The Offensive

 

GBPUSD: With GBP holding firmly above its broken resistance turned support at the 1.6259 level and seen reversing its Monday losses, further upside offensive is likely. Resistance resides at the 1.6450 level. A breach of here will aim at the 1.6500 level with a break of there triggering more strength. Further out, resistance stands at the 1.6550 level with a violation paving the way for a run at the 1.6550 level. Its daily RSI is bullish and pointing higher supporting this view. Conversely, support lies at the 1.6342 level followed by the 1.6259 level. A reversal of roles is expected to occur and turn the pair higher. However, if that is broken, expect further decline to push the pair lower towards the 1.6200 level and then the 1.6150 level. On the whole, GBP continues to retain its medium term upside offensive.

 

[FXTechstrategy Team 10]

EURUSD: A follow through higher the past week suggests further price extension in the new week. Further out, resistance resides at the 1.3750 level where a break will aim at the 1.3800 level. Price hesitation may occur here but if violated it will target the 1.3850 level. Its weekly RSI is bullish and pointing higher supporting this view. Conversely, support lies at the 1.3300 level with a break turning focus to the 1.3250 level and possibly lower towards the 1.3200 level. We may see bulls come in here and turn the pair higher but further decline is seen expect a move lower towards the 1.3100 level. All in all, EUR remains biased to the upside in the medium.

 

[FXTechstrategy Team 10]

EURUSD: EUR looks to extend its bullishness in the new week having continued to hold on to its medium term uptrend. Further out, resistance resides at the 1.3831 level where a break will aim at the 1.3900 level. Price hesitation may occur here but if violated it will target the 1.4000 level. Its weekly RSI is bullish and pointing higher supporting this view. Conversely, support lies at the 1.3693 level with a break turning focus to the 1.3600 level and possibly lower towards the 1.3500 level. We may see bulls come in here and turn the pair higher but further decline is seen expect a move lower towards the 1.3400 level. All in all, EUR remains biased to the upside in the medium.

 

[FXTechstrategy Team 10]

EURUSD: Outlook Higher Medium Term.

 

EURUSD: With EUR’s broader bias remaining to the upside in the medium, further gains is likely in the days ahead. Resistance resides at the 1.3831 level. A cut through here will expose the 1.3850 level. Further out, resistance is seen at the 1.3900 level. Its daily RSI is bullish and pointing higher supporting this view. Support lies at the 1.3700 level with a breach targeting the 1.3650 level and then the 1.3600 level. We may see the bulls come in here and push the pair higher. However, if this fails to occur, expect further upside towards the 1.3550 level. All in all, EUR continues to retain its upside bias in the medium term.

 

[FXTechstrategy Team 10]

US Dollar Index: Recovers, Tests Trendline Resistance

 

US Dollar Index: With the Index bullish and threatening further upside, more strength is expected. However, it will have to break and hold above its declining trendline currently at the 80.61 level to trigger further strength. This if seen will extend recovery higher towards the 80.98 level where a violation will aim at the 81.48 level. A push through this level will set the stage for a run at the 82.00 level and possibly higher towards the 82.50 level. Its daily RSI is bullish and pointing higher supporting this view. Conversely, as long as it continues to trade below its declining trendline, expect a push back lower. Support lies at the 80.50 level where a violation will aim at the 80.00 level. Further down, support lies at the 79.75 level with a turn below here paving the way for a run at the 79.00 level. All in all, the Index continues to face upside threats in the short term.

 

[FXTechstrategy Team 10]

USDJPY: Retains Its Bullish Offensive Bias.

 

USDJPY: With the pair bullish and threatening further upside, more gains are likely in the days ahead. Resistance resides at the 105.00 level. Above here will resume its broader upside towards the 105.50 level. Further out, resistance resides at the 106.00 level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, support resides at the 103.00 level followed the 102.15 level. Further down, the 101.50 level and the 101.00 level come in as the next support followed by the 100.50 level. On the whole, USDJPY remains exposed to the upside medium term.