Resistance: 0.9325 moderate / 0.9354 moderate / 0.9386 moderate
Support: 0.9304 minor / 0.9280 moderate / 0.9253 minor
In the end we have along wick in Aussy as attempts to see a follow through to our bullish gap failed to hold for a ‘grave stone doji’ in the daily candlestick. Note we have an event risk at 0130GMT with the RBA releasing the minutes for the latest Monetary Policy Meeting, talk about changes in domestic fiscal policy and improvement in the external situation will be seen as hawkish. From indicators we have buy signals allover with the daily stochastic seeing a new bullish cross in line with the rising macd’s while EMA lines has new golden crosses. Note our previous inverted head and shoulder pattern remain valid with its target at 0.9580. Intraday we have a bearish bias with 4H stochastic oversold and macd at risk of a bear cross. Hourly charts for their part has a confluence of bears with stochastic seeing anew bearish crossover and macd poised to push under the zero line. Immediate calls for covering our gap with a break of 0.9304 as a possible entry though medium term we are a buy on dips.
Resistance: 1.3350 minor / 1.3385 moderate / 1.3405 moderate
Support: 1.3324 moderate / 1.3307 minor / 1.3281 moderate
New York trade eventually saw EURUSD begin the process of covering its big gap from the open with prices also hitting levels that define the years range play in the earlier jump. We are now in the process of mean reversion though indicators has daily stochastic coming off overbought levels while macd is also heading up. From the lower time-frames we are seeing sell signals with stochastic pushing oversold and macd’s also crossing lower in 4H charts. Hourly charts has stochastic poised at a bear cross while macd is looking to ease under the zero line. Given yesterdays price action and the intraday charts we prefer looking for a pull back to the daily EMA lines with 21D EMA at 1.3281 and projected lows at 1.3265.Consider shorts just under the 1.3324 moderate support, last weeks highs. Note we could be forming a big picture double top.
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