Chart of the Day

[Mysticforex 13]

Flame Out on AUD/NZD ?

 

On a technical basis, the outlook is not as clear because today’s flame out candle is a strong signal of a potential reversal in AUD/NZD. If the currency pair drops below 1.09, a deeper correction to 1.08 is possible. Resistance is at the June high of 1.1040, a level that needs to be broken before the pair can break out of a broader consolidation that can be seen on the weekly chart.

[Mysticforex 13]

Taking a look at the weekly chart of EUR/AUD, support in the currency is at 1.4225, the 38.2% Fibonnaci retracement of 2012 to 2014 rally. If this level is broken, the next stop for the currency pair should be the November swing low of 1.4050. A break 1.46 would be needed to negate the downtrend in the pair.

[Mysticforex 13]

The pair has been a rangebound play between 100.75 and 102.50 for most of the year and it needs to close above the 103.00 level to confirm the bullish bias. But the recent price action is constructive with higher lows suggesting that momentum is building to the upside.

[Mysticforex 13]

On a technical basis, 1.5800 is a very significant resistance level for EUR/NZD. Not only did the pair find support near this level in March and May, but it is also the 23.6% Fibonacci retracement of the sell-off that began on December 27th. If EUR/NZD closes above this level on the daily chart, the next stop for the currency pair should be the 100-day SMA at 1.5865 and then 1.60. However if it fails at 1.58, there is no major support until 1.56.

[Mysticforex 13]

While fundamentals may be less clear, on a technical basis, the break of the 100-day SMA signals the beginning of a more significant downtrend for AUD/USD. Having consolidated above 0.9320 for the past 7 weeks, today’s move also takes the currency pair below a significant support level. At this stage, technicals point to a continued sell-off that should drive AUD/USD to at least 92 cents and possibly even 91 cents. If the currency pair finds a reason to rally, a break back above the SMA at 0.9320 would be needed to negate the downside momentum.

[Mysticforex 13]

While fundamentals may be less clear, on a technical basis, the break of the 100-day SMA signals the beginning of a more significant downtrend for AUD/USD. Having consolidated above 0.9320 for the past 7 weeks, today’s move also takes the currency pair below a significant support level. At this stage, technicals point to a continued sell-off that should drive AUD/USD to at least 92 cents and possibly even 91 cents. If the currency pair finds a reason to rally, a break back above the SMA at 0.9320 would be needed to negate the downside momentum.

[Mysticforex 13]

On a technical basis, all of the oscillators show that GBP/USD is deeply oversold but with Friday’s decline, the currency pair also closed below the 100-day SMA for the first time since August 2013. This signals the possibility of further losses with the next level of support at 1.6630, the 23.6% Fibonacci retracement of the July 2013 to July 2014 rally. A move back above 1.70 would be needed to negate the downtrend in GBP/USD.

[Mysticforex 13]

On a technical basis, EUR/GBP rose above the first standard deviation Bollinger Band, which is bullish for the currency and as long as the pair holds above 0.7945, the uptrend remains intact. Although 80 is a big round number, if EUR/GBP hits a 1 month high above 0.7985, it should be able to break this level and make its way towards 0.8050. If U.K. data surprises to the upside, then a much needed relief rally in sterling will drive EUR/GBP down to 79 cents easily.

[Mysticforex 13]

A very strong move today highlight's s possible breakout above 2.0000 which could pave the way to a further rally above 2.0200. Only a break below 1.9700 would negate the bullish bias and turn the trade into sell once again.

[Mysticforex 13]

On a technical basis, the cup and handle pattern in AUD/NZD is a bullish pattern that suggests 1.1050 will be broken. If this level is breached on a closing basis in a meaningful way, there is no major resistance until the December high of 1.1215. However if the currency pair fails at 1.1050, the reversal could drive AUD/NZD back down to 1.09.

[Mysticforex 13]

based on the technical picture of EUR/GBP, the rally in the currency pair on Friday was very strong. Having broken above the former 1 month high of 0.7985, 80 would be too tempting not to test but even if EUR/GBP breaks through this level, gains should be limited to the June highs of 0.8035. If GBP/USD breaks back below 0.7925, then the uptrend would be negated.

[Mysticforex 13]

The euro has support at 1.3330, but a break there leads to a test of 1.3290 support from November of last year followed by a possible double bottom test at 1.3100. On the upside only a move through the 1.3500 level negates the bearish bias and puts the pair back to neutral stance

[Mysticforex 13]

According to our Double Bollinger Bands, GBP/USD remains in the sell-zone, which means the downtrend is intact. In order for the currency pair to shrug off the downside momentum, it needs to break above the 100-day SMA that sits near 1.6900. Otherwise, there’s still a chance that the currency pair will drop to its next support level of 1.67.

[Mysticforex 13]

On a technical basis, lower highs and lower lows is a sign of weakness for USD/CAD. The currency pair dropped out of the uptrend zone encapsulated by the 1st and 2nd Standard Deviation Bollinger Bands, a signal that a deeper sell-off could ensue. If USD/CAD breaks below 1.0870, the 38.2% Fibonacci retracement of the March to July decline there is no major support until 1.08. However if it rises back above 1.0950, a test of 1.10 becomes more likely.

[Mysticforex 13]

On a technical basis, lower highs and lower lows is a sign of weakness for USD/CAD. The currency pair dropped out of the uptrend zone encapsulated by the 1st and 2nd Standard Deviation Bollinger Bands, a signal that a deeper sell-off could ensue. If USD/CAD breaks below 1.0870, the 38.2% Fibonacci retracement of the March to July decline there is no major support until 1.08. However if it rises back above 1.0950, a test of 1.10 becomes more likely.

[Mysticforex 13]

GBP/CAD is now nearing the bottom of its recent range and a move through 1.8100 would put 1.8000 squarely in view. On the upside only a move through 1.8400 relieves downside bias.

[Ammeo 10]

Took long on eurgbp - pullback into bullish engulfing daily from last week

[Mysticforex 13]

EUR/GBP has formed a strong bottom at the 7900 level that has consolidated for more than several weeks suggesting that the pair may be ready to turn and break out above the 8050 level with a possible short covering target of 8200. Only a break of 7900 reestablished the bearish trend.

[Mysticforex 13]

Taking a look at the charts the next significant support level for EUR/USD is near 1.3250, the 38.2% Fibonacci retracement of the July 2012 to May 2014 rally. If this level is broken, there is minor support at 1.32 followed by more significant support at 1.30. EUR/USD needs to rise back above 1.34 to negate the downtrend.

[Mysticforex 13]

Technically 1.1000 represents and strong intermediate term barrier for USD/CAD with the pair forming a double top at that level. A move through 1.0900 could open a test of 1.0850 while only a break above 1.1050 would reassert a bullish bias for the pair.

[Mysticforex 13]

Taking a look at the charts there is no major resistance in AUD/JPY until 97.60, the 23.6% Fibonacci retracement of the October 2011 to April 2013 rally. A move back below 94 would be needed to negate the uptrend in the pair

[Mysticforex 13]

Technically the unclosed gap in AUD/NZD is very bullish especially if it remains so for a few more days as traders will then take it a sign of structural change in the currency. The 1.1250 level is the natural upside move in the pair while 1.1000 provides the downside support

[Mysticforex 13]

Technically, there is a small ascending triangle forming in the currency pair that reinforces its upward bias and the importance of a 1.52 break. If this level clears, the next level of resistance is above 1.53. On the downside, the break below 1.51 would expose the currency pair for a move down to 1.50.

[Mysticforex 13]

Technically, the EUR/AUD remains just above the key 1.4000 support and if it breaks that key level, the pair is likely to target at least 1.3800 before finding a modicum of support. Only a close above the 1.4200 relieves any downward bias.

[Mysticforex 13]

Having broken below the August swing low, the next level of support for GBP/USD is the March low of 1.6462 and below that there is no major support until the 38.2% Fibonacci retracement of the 2013 to 2014 rally at 1.6285. A break back above 1.6645 would be needed to negate the downtrend.