Trade view /
04 July 2016 at 8:27 GMT
– The stalling in bullish price action is a concern with levels above the 50% pullback of 96.24 finding sellers. However, mixed trading for the last five days looks to have formed a corrective channel or flag that has an eventual bias to break to the upside. What USD bulls don’t want to see is a move through the baseline at 95.26 (current price 95.76). The breakout level is currently at 96.29. There is a lack of economic releases today so we could stay within this range unless we get a news bomb.
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Monthly – The longer timeframe still holds a mild bullish bias with an Outside Candle posted in May from the reverse trendline support.
Weekly – Holding within the weekly Ichimoku cloud. This sometimes results in daily results being mixed. We do hold a bullish Outside Bar from week June 20. This, combined with the corrective channel formation, keeps the outlook positive. The first resistance is seen at 0.9865
Daily – Highlights a 161.8% extension close to the previous high at 1.0274 and is our main medium-term focus. Selling has stalled this morning close to our bespoke support of 0.9717.
Intraday – The one-hour chart highlights the pair breaking the Ending Wedge formation to the upside. We have bespoke resistance at 0.9752. With this close to the previous swing high, we could see a correction here. We could see a retest of the wedge breakout. The intraday target level is the start of the wedge (0.9820).
Management and risk description
Buying a dip at 0.9730 or a break of 0.9760
intraday 0.9820 / medium-term 1.0270
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more