GBPUSD: Having extended its weakness triggered off the 1.6917 level during Wednesday’s trading session today, the risk remains lower. It was seen testing its key support at the 1.6730 level, its May 15 2014 low as at the time of this analysis. On further downside, support comes in at the 1.6700 level where a breach will aim at the 1.6650 level with a turn below here targeting the 1.6600 level. Further down, support is located at the 1.6650 level. Its daily RSI is bearish and pointing lower supporting this view. Conversely, on the upside, resistance resides at the 1.6815 level where a break will open the door for a run at the 1.6881 level and then the 1.6920 level. A cut through here if seen will target the 1.6995 level. On the whole, GBP continues to retain its downside bias.
GOLD: Outlook for GOLD remains lower after breaking lower out of its consolidation on Tuesday and following through lower on Wednesday trading session. Support lies at the 1,250.00 level as the next support where a breach will set the stage for a run at the 1,230.00 level. Further down, a turn below the mentioned support will target the 1,200.00 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, resistance comes in at the 1,280.00 level where a breach will expose the 1,308 level. Further out, resistance resides at the 1,315.48 level with a violation aiming at the 1,331.36 level and then the 1,342.00 level. All in all, GOLD remains biased to the downside in the medium term.
EURGBP- With further recovery higher stalling and taking back most of its intraday gains, it now looks to begin a correction of its move from the 0.8080 to 0.8152. If this is eventually triggered, expect a retarget of the 0.8116 level where a violation if seen will activate further downside towards the 0.8080 level where a violation will turn attention to the 0.8050 level. Further down, support comes in at the 0.8050 level. On the other hand, EURGBP will have to return above the 0.8152 level to prove our downside view wrong. In such a case, the 0.8195 level will be aimed at where a breach will turn focus to the 0.8250 level. On further upside, a break of that level will set the stage for a run at the 0.8300 level. Its daily RSI is bullish and supportive of this view. All in all, the cross remains biased to the upside in the short term on correction but is now hesitating.
EURJPY- The cross may continue to face downside vulnerability but now faces recovery risk with a rejection candle printed on Thursday. It will have to follow through on that recovery to open the door for more upside. Resistance resides at 139.35 level where a break will aim at the 140.00 level and then the 140.94. We may see a breather here but if that fails, further gains could follow towards the 141.50 level. A cut through here will target the 142.46 level. Conversely, support lies at the 138.13 level. A breach will aim at the 137.50 level. A violation will target the 137.00 level and then the 136.50 level. All in all, the cross remains biased to the downside but faces a recovery higher risk.
USDCHF: Looks To Trigger More Corrective Weakness.
USDCHF: While the pair’s three-week uptrend may be intact, corrective pullback risk continues to develop. With USDCHF closing flat the past week, we think a correction of the mentioned uptrend could be building up further. In such a case, the 0.8932 level comes in as the next downside objective. A turn below here will expose the 0.8896 level where a breach will pave the way for a run at 0.8859 level and possibly lower towards the 0.8800 level. Conversely, on the upside, resistance resides at the 0.8989 level where a break will set the stage for the resumption of its uptrend towards the 0.9050 level. Further out, resistance resides at the 0.9100 level and then the 0.9150 level. Its weekly RSI is bullish and pointing higher supporting this view. All in all, the pair remains biased to the upside in the short term but now faces the risk of correction lower.
EURUSD: Although EUR remains biased to the downside in the medium term, it faces the risk of a recovery higher triggered on Friday (see daily chart). If this continues, expect further upside towards the 1.3700 level where a break will aim at the 1.3774 level. A break will set the stage for a run at the 1.3839 level. Further out, resistance resides at the 1.3905 level and 1.3900 level. On the other hand, support lies at the 1.3685 level, its May 2014 low. A breach of here will resume its broader downtrend and aim at the 1.3600 level. Further down, support stands at the 1.3550 level where a violation will target the 1.3500 level. We look to buy this pair on recovery higher following its recent weakness. All in all, EUR remains biased to the downside in the medium term but faces upside recovery Risk
GBPJPY – The cross followed through higher on the back of its Friday strength during Monday trading session today. This leaves the risk of further upside towards the 171.50 level where a violation will pave the way for a move higher towards the 172.00 level. A decisive break and hold above here will open the door for additional gains towards the 172.78 level where a break will aim at the 173.13 level. A violation will aim at the 174.00 level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, support comes in at the 170.15 level where a break will aim at the 169.49 level. A cut through here if seen will target the 168.63 level and then the 168.00 level. All in all, the cross remains biased to the upside on corrective recovery.
USDJPY: With USDJPY rallying strongly to close above its key resistance at the 102.35 level during Monday trading session, it now faces the risk of price extension. A cut through here will target the 102.77.00 level with a breach of here if seen turning focus to the 103.50 level. Further out, resistance is seen at the 104.00 level and then the 104.50 level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, support comes in at the 102.13 level where a reversal of roles as support is expected. A violation will aim at 102.49 level and then the 101.00 level. A break if seen will aim at the 101.50 followed by the 100.72 and then the 100.00 level. On the whole, USDJPY remains exposed to the upside medium term.
EURUSD: Continues To Face Corrective Recovery Risk
EURUSD: With EUR reversing its Monday losses during Tuesday trading session to close higher, further recovery is envisaged. It was seen taking back most of its intra day losses during Wednesday today suggesting a continuation of its corrective recovery is underway. But the pair will have to break and hold above the 1.3647 level to trigger further upside towards the 1.3700 level where a break will aim at the 1.3774 level. A turn above here will set the stage for a run at the 1.3839 level. Further out, resistance resides at the 1.3905 level and then the 1.3900 level. On the other hand, support lies at the 1.3586 level followed by the 1.3550 level and then the 1.3500 level. Further down, support stands at the 1.3450 level. All in all, EUR remains biased to the downside in the medium term but faces recovery Threats.
USDCHF: Having closed lower on a rejection candle following a loss of upside momentum the past week, it faces downside pressure in the days ahead. Immediate support comes in at the 0.8896 level where a violation will target the 0.8850 level. Further down, support lies at the 0.8800 level and then the 0.9742 level. A cut through here will set the stage for a run at the 0.8700 level. Conversely, resistance resides at the 0.8986 level where a break will retarget the 0.9050 level. A breather may occur here and turn the pair lower but if broken it will aim at the 0.9100 level. A close above here will pave the way for a run at the 0.9150 level. All in all, the pair remains biased to the downside in the short term.
AUDCAD: AUDUSD is now seen strengthening after closing marginally higher on Monday. However, it must decisively break and hold above the 0.9399/0.9400 levels on a daily closing basis to create scope for more gains. Further out, resistance resides at the 0.09450 level with a break targeting the 0.9500 level. Further out, resistance resides at the 0.9550 level. Its daily RSI is bullish and pointing higher suggesting further strength. The risk to this analysis will be a return to the 0.9328 level where a reversal of roles as support is likely. Below here if see will aim at the 0.9256 level where a break could force further downside towards the 0.9200 level. Further down, support comes in at the 0.9150 level. And then the 0.9100 level, its psycho level. All in all, the pair remains biased to the upside.
GOLD: Loses Upside Momentum Ahead Of Key Resistance
GOLD: Outlook for GOLD may remain higher but loss of upside momentum has set in. It took back most of its intra day gains to close marginally higher on Wednesday ahead of its key resistance at the 1,273.80 level. On the upside, resistance comes in at the 1,280.00 level where a breach will expose the 1,308 level. Further out, resistance resides at the 1,315.48 level with a violation will aim at the 1,331.36 level and then the 1,342.00 level. Conversely, key support lies at the 1,250.00 level where a break will aim at the 1,240.77/1,237.00 levels. However if this zone is taken out, expect more weakness to occur towards the 1,220.00 level. Further down, a turn below the mentioned support will target the 1,200.00 level. All in all, GOLD remains biased to the downside in the medium term but faces correction.
EURJPY: The 138.13/137.97 Zone To Provide Support.
EURJPY- Although the cross may be weak and vulnerable to the downside, it faces a recovery higher especially now that it is seen struggling at the 138.13/137.97 levels. This level could hold and turn the cross back up but if violated, support lies at the 137.50 level. A violation will target the 137.00 level and then the 136.50 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, resistance resides at the 139.50 level where a breach will aim at the 139.95/8 level. Resistance resides at the 140.94. We may see a breather here but if that fails, further gains could follow towards the 141.50 level. A cut through here will target the 142.46 level. All in all, the cross remains biased to the downside.
EURGBP- With EURGBP extending its weakness through the 0.8000 level during Friday trading session, further downside threats are likely. On the downside, support resides at the 0.7960 level where a breach will turn focus to the 0.7922 level. Further down, a break of that level will set the stage for a run at the 0.7900 level where a breather may occur and turn the cross higher. Its daily RSI is bearish and pointing lower suggesting further weakness. Conversely, resistance resides at the 0.8051 level where a break will target the 0.8080 level. A break of the 0.8080 level will turn attention to the 0.8100 level followed by the 0.8150 level. All in all, the cross remains biased to the downside in the medium term.
USDCHF: While USDCHF may be biased to the upside, it is finding it hard to overcome its key psycho level at the 0.9000 level. That level has been tested two times and held suggesting price could turn lower as long as that zone continues to hold as resistance. On the downside, support comes in at the 0.8919 level where a violation if seen will aim at the 0.8850 level. Below here will pave the way for a run at the 0.8800 level with a cut through there targeting the 0.8750 level. Further down, support lies at the 0.8700 level. On the upside, resistance resides at the 0.9000 level where a reversal of roles is envisaged. However, if this fails, expect further upside pressure to develop towards the 0.9036/50 levels. A breather may occur here and turn the pair lower but if broken it will aim at the 0.9100 level with a close above here setting the stage for a move higher towards the 0.9150 level. All in all, the pair remains biased to the upside in the short term.
EURUSD: With EUR closing lower for the week, further downside is likely towards the 1.3500 level. A break will aim at the 1.3450 level where a violation will pave the way for a move lower towards the 1.3400 level. If this continues, expect further downside to occur towards the 1.3350 level. Its weekly RSI is bearish and pointing lower supporting this view. On the other hand, resistance lies at the 1.3578 level where a violation will aim at the 1.3620 followed by the 1.3685 level, its May 2014 low. A breach of here will resume its broader downtrend and aim at the 1.3700 level. All in all, EUR remains biased to the downside in the short term.
GBPUSD: With GBP testing the 1.7012 level and turning back lower during Monday trading session today, risk of corrective weakness is now building. On the downside, support lies at the 1.6921/20 levels where a reversal of roles as support is likely. A break of here will turn attention to the 1.6850 level. Further down, support comes in at the 1.6800 level with a turn below here targeting the 1.6750 level. Conversely, the pair will have to retake the 1.6995/1.7012 levels to resume its broader uptrend. Further out, resistance is located at the 1.7050 level where a violation will aim at the 1.7100 level and possibly higher towards the 1.7150 level. Above here if seen will aim at the 1.7200 level Its daily RSI is now turning lower supporting this view. On the whole, GBP continues to retain its upside bias but faces corrective weakness.
EURJPY- With the cross remaining on upside offensive, further strength is likely. In such case, additional upside will aim at the 139.00 level followed by the 139.50 level where a breach will aim at the 139.95/8 level. Further out, resistance resides at the 140.94. We may see a breather here but if that fails, further gains could follow towards the 141.50 level. A cut through here will target the 142.46 level. On the downside, support lies at the 138.13/137.97 levels. This level could hold and turn the cross back up but on continued hold below that zone, support lies at the 137.50 level. A violation will target the 137.00 level and then the 136.50 level. All in all, the cross remains biased to the downside though recovery.
GBPUSD: With GBP closing sharply higher off its support at the 1.6920 level on Wednesday and following through higher on Thursday above the 1.7000 level, it looks to retarget the 1.7050 level. Further out, resistance resides at the 1.7100 levels where a breather could occur but if broken the 1.7150 level will be targeted. A break will open the door for a run at the 1.7200 level and then the 1.7250 level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, support comes in at the 1.7000 level followed by the 1.6950 level where a break will aim at the 1.6881 level. A violation w ill aim at the 1.6800 level. Below here if seen will set the stage for a run at the 1.6750 level where a violation will aim at the 1.6698 level with a break aiming at the 1.6658 level. On the whole, GBP continues to retain its upside bias.
EURJPY- The cross remains biased to the upside though hesitating. In such case, further upside will aim at the 139.00 level followed by the 139.50 level where a breach will aim at the 139.95/8 level. Further out, resistance resides at the 140.94. We may see a breather here but if that fails, further gains could follow towards the 141.50 level. A cut through here will target the 142.46 level. On the downside, support lies at the 138.13/137.97 levels. This level could hold and turn the cross back up but on continued hold below that zone, support lies at the 137.50 level. A violation will target the 137.00 level and then the 136.50 level. All in all, the cross remains biased to the downside though recovering
