EURUSD continues trendless
EURUSDcontinued to trade quiet on Wednesday, still trading between the key support line of 1.1260 (S1) and the resistance of 1.1540 (R2). Today, we get the US CPI for January, which is expected to have fallen into deflation. This could push EURUSD higher, but not high enough to exit its range and give directional signals, I believe. On that account, I would hold my flat stance as far as the short-term picture is concerned. With regards to the broader trend I believe that the pair is still in a downtrend. EURUSD is printing lower peaks and lower troughs below both the 50- and the 200-day moving averages. Nevertheless, I maintain the view that only a break below 1.1260 (S1) could turn the bias back to the downside and perhaps open the way for another test at 1.1100 (S2), defined by the low of the 26th of January.
• Support: 1.1260 (S1), 1.1100 (S2), 1.1025 (S3).
• Resistance: 1.1450 (R1), 1.1540 (R2), 1.1650 (R3).
GBPUSD pops above 1.5500
GBPUSD continued to race higher yesterday, breaching the psychological barrier of 1.5500 (S1). I believe that the break will encourage the bulls to accelerate higher and perhaps challenge the 1.5590 (R1) resistance hurdle. A clear break above that level could prompt extensions towards 1.5675 (R2). Our short-term oscillators corroborate my view and detect accelerating upside speed. The RSI just poked its nose above its 70 line, while the MACD lies above both its zero and signal lines. On the daily chart, the rate managed a daily close above the 80-day exponential moving average for the first time after the 29th of July. It is worth noting that the 80-day EMA still coincides with the 1.5500 zone. As a result, I’ve turned bullish with regards to the medium trend as well as the short term.
• Support: 1.5500 (S1), 1.5400 (S2), 1.5350 (S3).
• Resistance: 1.5590 (R1), 1.5675 (R2), 1.5750 (R3).
USDJPY oscillates in a narrow range
USDJPY edged somewhat higher yesterday, but remained stuck within a narrow range below the psychological figure of 120.00 (R2), between the barriers of 118.40 (S1) and 119.35 (R1). The sideways mode of the rate is also confirmed by our short-term technical studies. Both the 50- and 200-period moving averages point sideways, while both our oscillators gyrate around their neutral lines, pointing east as well. However, on the daily chart the rate is still trading above both the 50- and the 200-day moving averages and above the upper line of the triangle pattern that had been containing the price action since November. This keeps the major upside path intact, but I would like to see a break above the resistance of 120.75 to be convinced that the longer-term uptrend is back in force.
• Support: 118.40 (S1), 118.00 (S2), 117.60 (S3).
• Resistance: 119.35 (R1), 120.00 (R2), 120.50 (R3).