Resistance: 130.51 moderate / 130.71 minor / 131.03 moderate
Support: 130.19 moderate / 129.84 moderate / 129.62 minor
Wednesday turn-out to be consolidation day after Tuesday’s big rout with the days range failing to even see the halfway mark of the real body for the previous black candle. Daily indicators see a confluence of bears with stochastic pushing further into oversold areas while macd has a new bear cross and prices for the moment attempt to get back under the EMA lines once more. Note we are forming a double top that spans July and August, the trigger at 127.96. From the lower time-frames we have mixed signals as 4H macd see a new bullish crossover while stochastic is looking to crosslower and we have price action looking for a break of our NY range play. Hourly charts has stochastic heading lower while macd has flattened out just around the zero line with the signal line beneath it. Look foraclose below the daily pivot at 130.19 to start off our follow through drop.
Resistance: 1.3345 moderate / 1.3363 minor / 1.3386 moderate
Support: 1.3293 moderate / 1.3252 minor / 1.3231 moderate
Euro managed to close just above the 21D EMA Wednesday following a sharp sell-off that saw lows below the said area. Indicators see a confluence of bears from he big picture as stochastic show a new bear cross and divergence while macd’s begin to open lower after staying flat above the zero-line the past two weeks. In intraday charts we are seeing mostly mixed signals with a new bullish cross in stochastic from the 4H picture while macd has pushed under the zero-line. Hourly charts has stochastic in oversold levels while macd is below zero and flat above the signal line. Note that our daily close is below the 61.8 Fib retracement level of our sell-off for the year, while the weekly candle is forming a bearish engulfing. This suggest our break of 1.3417 last week maybe false and we risk follow through weakness.
Resistance: 1.5543 minor / 1.5576 moderate / 1.5597 moderate
Support: 1.5502 moderate / 1.5480 minor / 1.5451 moderate
Cable has a hundred pip for the Wednesday candle more than the daily average as we get a hammer for a candlestick pattern with lows sticking down to the 55D EMA and the close above the 21D EMA. Among indicators we continue to see mixed signals with stochastic coming off oversold levels while macd is heading lower. Note we have opened the day above the daily pivot at 1.5502. From the 4H picture we are seeing a confluence of buys with stochastic poised to push overbought while macd sees a new bullish cross. Hourly charts for their part are mixed with stochastic failing to push overbought and macd just under zero looking to move up. We have little sense of urgency but given the daily picture bias is for further gains. Consider buys on a dip to the daily pivot at 1.5502 or on a push above 1.5543.
Resistance: 0.8978 moderate / 0.9000 psychological / 0.9040 moderate
Support: 0.8935 moderate / 0.8901 moderate / 0.8849 moderate
In the end we have a high wave candle for Aussy a qualifiable ‘dragon fly doji’ with a long tail sticking out below the 0.8935 support area. Daily indicators remain bearish with stochastic looking for apush down through the oversold threshold while macd is below zero and heading lower. Price action however suggests a possible turnaround with the calendar providing enough catalyst New Home Sales and Private Capital Expenditure. In the lower time frames we have bullish continuation patterns in the making in 4H charts while macd has a new crossover for the upside and stochastic is poised to go overbought. hourly charts for their part is looking for a bullish breakout of its congestion from NY trade. With the immediate risk calling for buys we look forward to Australian data providing an incentive for bulls to jump in and see mean reversion. Weakness in Aussy figures will have us looking for a close under 0.8935, the daily pivot, before shorting.
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