Despite Wednesday’s bounce we have USDJPY still within the ranges for the last two-three weeks with daily stochastic crossing lower while macd is rising.Daily EMA lines are acting as an immediate resistance level. Intraday we have 4H stochastic overbought while macd is heading higher, in hourly charts we have stochastic already pointing down while macd is topping off. For now immediate risk is for a break lower though we do not plan on joining the sell-side of the market. We prefer looking for buys from just above the 76.46 region.
We have EURGBP fast approaching the ranging market resistances for the last 4-5 weeks while daily indicators has stochastic in overbought levels and macd’s opening higher. From the 4H level we see an evening star forming while stochastic is crossing lower though still overbought and macd still pushing up. Hourly charts has stochastic pushing into oversold territory while macd has just crossed lower. At this point we are looking for EURGBP to ease off to the initial support area at 0.8769 with such a move likely to reinforce the bearish view for EURUSD.
EURUSD remains inside a wide ranging market, with Wednesday’s attempts to push for the congestion resistances failing to see a bearish close at the end of the trading day. Despite this daily indicators remain bullish with stochastic and macd heading up while EMA lines are acting as a support. In intraday charts we are seeing a confluence of bears from stochastic and macd in both 4H and hourly time frames. For now we prefer looking for shorts from just under 1.4428 for a push to the 1.4350 strong support area.
Similar to Aussy we have Kiwi failing to take out the bearish daily EMA lines with NZDUSD dropping in the middle of the US trade. Among the indicators daily stochastic is pushing higher while macd has bottomed out. In the lower time frames we have had mixed candles from the 4H picture with macd’s flat along with the stochastic. Hourly indicators has a confluence of shorts stochastic pushing to oversold levels and macd opening down with prices in the process of taking out the 0.8261 support. Consider shorting on a close under 0.8261 for a sell-off to 0.8213 then 0.8172.
Following failed attempts to push past the daily EMA lines we have Aussy with a dark cloud cover among the daily candles, even as macd and stochastic heads up. From the 4H picture we have a confluence of bears, stochastic oversold while macd has crossed lower. Hourly charts see more bear signals with macd down along with stochastic. Absent an external catalyst AUDUSD looks set for a bear market a follow through to the DCC, consider shorts at the break of 1.0450 for a sell-off to 1.0390 expect strong support only at 1.0314, stops may be placed just above the highers of the previous hourly candle.
Following the break of our strong support at 1.6440 we had Cable selling further to close under the 21D EMA dragging daily stochastic into oversold levels and macd’s into a bear cross. In 4H charts we have similarly bearish signals stochastic in oversold territory as macd continues to ease. Hourly charts for their part has stochastic coming off oversold levels while macd is bottoming out. Given the mixed signals we are getting in intraday charts we prefer looking for a pullback before shorting just under the 1.64440 breakout point. A push below 1.6322 though may also be seen as an excuse for pulling the trigger on a new short.
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