EURUSD (1.078): After consolidating above 1.0812 and below 1.097 levels of support and resistance, the single currency finally gave way as we write this analysis. A daily close below 1.0812 support could signal a stronger move to the downside, with the lower support at 1.0642 coming into the picture. The daily chart’s head and shoulders pattern also look to be validated and could be confirmed after a close below 1.0812 on the daily session. Plotting the new median line which slopes lower, strong support can be seen between 1.0642 – 1.0564 which is likely the level where EURUSD could touch down to. Establishing support at this level could signal an early bottom if the price doesn’t breach lower.
GBPUSD (1.470): The British Pound looks weak as the currency continued to post strong declines for the past 5 sessions. Price action is currently looking to bounce off the dynamic support offered by the median line and comparing this with the Stochastics oscillator, there is a scope for a move to the upside in the near term. Initial estimates point to a correction to a minimum rally to 1.51 level, should prices find support close to 1.463 lower support that was previously identified. The stronger correction to 1.51 should help the GBPUSD resume its downtrend with an eye for posting new lows in the coming months.
USDJPY (118.97): USDJPY remains bearish but supported above 118.850 level of support on the near term. If the support breaks USDJPY could be looking at further losses as the next main level of support comes in at 116.5. To the upside, in the event the 118.85 support holds, USDJPY could be looking to retrace some of the losses with a correction due towards 120.66 region at the very least. The Stochastics oscillator on the daily chart is currently pointing down but a reversal could confirm a minor bullish divergence which shows confluence with the correction to 120.66 region.
USDCAD (1.393): Price action in USDCAD has been range bound near 1.385 – 1.398 regions for nearly past 11 sessions on the daily chart. This strong consolidation signals a potential volatile breakout in the near term. The risks to the downside are more in comparison to a move to the upside. The untested resistance level which could now turn to support at 1.342 – 1.333 remains a key support level to watch for on a break below 1.388 level where USDCAD is trading currently above. To the upside, a breakout higher could mark a continued move with 1.40 round number coming into the picture. However, the Stochastics oscillator is showing an extreme divergence, which could signal the correction down to 1.342 – 1.333
USDCHF (1.00): USDCHF managed to consolidate above 0.985 and broke out higher breaking above 1.0 round-number mark. Prices are currently testing 1.008 level which is a minor support/resistance level In the event that prices hold near this resistance, a retest down to 0.9822 is very much a possibility. To the upside, a break above 1.008 could signal a move higher back to the previous highs near 1.03 region.
