Resistance: 1.6102 minor / 1.6126 minor / 1.6175 moderate
Support: 1.6066 moderate / 1.6020 minor / 1.5960 moderate
Cable Wednesday saw a follow through drop to the previous days grave stone doji inline with the ‘Evening Star’ pattern in from the previous week. At the moment we are push for the 34D EMA a moderate support at 1.6066 with daily stochastic in oversold levels while macd is dropping. In the lower time frames we have mixed signals with 4H stochastic coming off oversold levels while macd is dropping. Hourly charts for their part has stochastic coming off overbought levels while macd is bearish. Given the mixed intraday signals we prefer remaining sidelined though with overall bias bearish a sell on rallies to 1.6126 or on a close below 1.6066 can be adopted.
Resistance: 1.0107 minor / 1.0150 strong / 1.0186 minor
Support: 1.0075 minor / 1.0055 strong / 1.0025 minor
Wednesday saw AUDCAD closing with a dragonfly doji bouncing off the previous swing lows at 1.0055. Daily indicators has stochastic oversold and macd’s crossing lower while prices are also seeing a significant excursion from the daily EMA’s. From the 4H picture we have a bullish bias with macd bottoming out and stochastic pointing up. Hourly charts are mixed with stochastic coming off overbought levels while macd is moving higher. Given the mixed release out of Australia we prefer looking for a buy on dips to the 1.0055 region. Alternatively a push past 1.0107 could also be used as an entry for a push to 1.0150.
Resistance: 80.33 moderate / 80.68 minor / 81.01 moderate
Support: 80.05 minor / 79.73 strong / 79.34 minor
Wednesday saw a hammer in AUDJPY with prices bouncing off the strong support at 79.73 in European markets. Indicators has macd’s heading lower and stochastic looking to reenter oversold territory though we have a substantial gap between prices and EMA opening the possibility of mean reversion. From the lower time frames we have mixed signals with 4H stochastic crossing lower and macd’s poised to cross up. Hourly charts for their part has a bullish macd and a bear cross in stochastic. Note we appear to be forming a double top in hourly charts. For now we prefer looking for a close above 80.33 for a push to the 21D EMA 81.01 or a close below 80.05 to trigger a double top and retest the key 79.73 strong support level.
Resistance: 1.0235 minor / 1.0268 minor / 1.0291 moderate
Support: 1.0196 minor / 1.0165 strong / 1.0138 minor
Wednesday saw follow through weakness from the previous day’s rate cut with AUDUSD getting closer to its weekly level double top trigger at 1.0165. Among indicators we continue to see new dead crosses from the EMA lines while stochastic remains oversold and macd is heading lower. In intraday charts we have 4H macd’s bottoming out while stochastic has come off oversold levels. Hourly indicators for their part has stochastic coming off overbought levels while macd is bullish. Given our pattern and daily indicators overall risk calls for a test of the trigger at 1.0165. A daily close below it will be needed for sustained weakness. Note we have catalyst at 0130GMT with Australian Retail Sales numbers seen at 0.5% and Building Approvals with consensus at 4.8%. Whisper for the figures are calling for weaker than expected results.
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