Trade view /
01 June 2016 at 7:15 GMT
USD Index – Dips continue to be bought in the USD with the index moving towards to the top of the daily Ichimoku Cloud (96.10). For the last eight days we have been caught within this formation (Cloud). This normally dictates that price action is mixed and volatile. There is scope for further dip buying but, with an Ending Wedge formation present and bearish divergence on the RSI (Relative Strength Index), real caution should be noted at these levels for USD bulls.
Trend line resistance is at 96.12, supports at 95.56 (wedge).
USDJPY – Selling pressure has been seen overnight but there is ample scope for corrective rallies to sell into this morning.
Monthly – Prime zone is still focuses on 101.67-100.57. This is previous support and the 50% Fibonacci level.
Monthly - towards support
Weekly – Still highlights a bearish count alive with the sequence for trading being lower lows and lower highs (waves).
Weekly - Bear Count
Daily – We can clearly see that for the last two trading day’s rallies have been capped by the daily Ichimoku Cloud and we have broken to the downside overnight. A retest of the breakout is at 110.30
Daily - Capped by the Cloud
Two Hour – With the intraday chart highlighting the pair stalling at the 261.8% extension level of 109.73, it would be unwise to sell at the open. Reverse trend line resistance is seen at 110.25, close to Ichimoku Cloud base. However, our bespoke resistance is not seen until 110.65. With this in mind we would look to fade a move higher in two units.
Intraday - Stalls at 261.8%
Management and risk description
Selling at 100.25 and 110.65 (1 unit each)
109.11 (within 2 sessions) and 101.70 (long-term)
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more