Resistance: 0.8957 minor / 0.8978 minor / 0.9012 moderate
Support: 0.8922 minor / 0.8893 minor / 0.8875 moderate
Despite a bearish close Friday, a Chinese Manufacturing PMI released over the weekend has Aussy gapping up at the open already pushing through its R1 from pivots for a possible mean reversion, the 21D EMA at 0.9012. Daily indicators has stochastic crossing up coming off oversold areas while macd is bottom out. Intraday we are seeing a confluence of buys among the macds with both hourly and 4H charts heading for the zero-line, while stochastic sees the former overbought and the latter coming out of oversold areas. Numbers coming-out of Australia so far also support the notion of a strong Aussy with the AIG manufacturing Index seeing a marked improvement to 46.4 from 42.0 previously. We are also waiting for Building Approvals and Company Operating Profit figures at 0130GMT with strong reads an excuse for a follow through rally to the 21DEMA, projected highs are at 0.9019 just above the said level. Look for a close above R1 at 0.8940 as your entry.
Resistance: 1.3216 moderate / 1.3259 moderate / 1.3278 moderate
Support: 1.3178 moderate / 1.3144 minor / 1.3103 moderate
Friday ended up as a hammer for Euro as we saw a late bounce ahead of along weekend in the US. Still we’ve triggered a daily level double top with the weeks open already gapping lower and indicators suggesting we look for further weakness as stochastic pushes oversold while we have macd pushing under the zero-line suggesting we look for follow through weakness. In the lower time-frames we have a bearish bias with 4H charts showing a confluence of bears stochastic just crossing lower while macd is flat right around the signal line. Hourly charts has stochastic poised to push oversold and macd flat above its signal line though still below zero. Note target for the daily double top is at 1.2975. Look for a close under S1, 1.3178, to get the sell-side going or a rejection from 1.3216,the daily pivot.
Resistance: 130.22 moderate / 130.51 moderate / 130.80 minor
Support: 129.78 moderate / 129.29 moderate / 128.90 minor
At the close we still had a bearish candle for EURJPY though with less hawkish talk out of the US and encouraging releases over the weekend we have started the week on a bullish gap to the middle of Fridays real body. Indicator wise we are seeing mixed signals as stochastic comes off oversold levels while macd is poised to cross lower. From the 4H picture we are seeing a confluence of buys as macd begins to open up while stochastic is well on its ways higher and macd is opening up. Hourly charts for their part is already overbought according to stochastic and macd is poised to cross-up through the zeroline. Immediate risk calls for further gains though the absence of a bullish reversal pattern suggest caution. We prefer getting a bounce from the daily pivot, 129.78, alternative entry will be on a close above 130.22.
Resistance: 1.5517 minor / 1.5547 moderate / 1.5581 minor
Support: 1.5499 minor / 1.5463 moderate / 1.5429 moderate
After seeing a spinning top Friday we have Cable opening higher with the gap starting us at the 21D EMA for the week and price action suggesting we get a follow through. From indicators we are seeing a mixed view n intraday charts with stochastic heading up and macd’s still pointing down. In intraday charts we have a confluence of buys with 4H stochastic poised to push overbought and macd just seeing a bullish crossover looking to make a move on the zeroline. hourly charts has stochastic crawling overbought and macd just pushing up through the zeroline. Note our daily fractal remains valid with our sell-off the past two weeks looking like a healthy pullback. With the pattern of higher highs and higher lows we view the previous wednesday as our latest higher low and the push through the 21D EMA as the start of our next surged to another higher high. A close above R1 would make a good excuse forgoing long.
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