USD/CAD intraday technical levels and trading recommendations for January 15, 2014 2014-01-15 caddweek.jpgcaddailyym.jpg The USD/CAD bulls are pushing towards higher price levels (1.0980) that havent been reached since September 2009. This is enhanced by weak fundamental conditions in Canada which stressed monetary market suspicions. The USD/CAD pair has achieved multiple breakouts of several resistance levels, allowing the pair to push towards 1.1100 being approached today. The next prominent resistance level is around 1.1230 corresponding to 50% Fibonacci Level of the depicted bearish movement between March 2009 and July 2011. On the downside, the price level of 1.0840 represents the most recent support level which held price above during bearish retracement that took place on Monday. The USD/CAD pair has a prominent supply zone at 1.0700-1.0740 which represents the upper limit of consolidation range that got broken last week. GBP/USD intraday technical levels and trading recommendations for January 15, 2014 2014-01-15 gbpdaillysam.jpggbp4hm.jpg The daily chart shows multiple bearish rejections at the upper limit of the ongoing channel resulting in an atypical bearish head and shoulders pattern. Despite Yesterdays bullish reversal towards 1.6460 intraday resistance, a bearish engulfing daily candlestick is being expressed today indicating the strength of this price level as resistance. Sellers should be watching for todays daily closure. Daily closure below 1.6300 signals another bearish movement towards 1.6230-1.6200. On the other hand, daily fixation above 1.6330 will probably allow another bullish impulse towards 1.6600 to take place invalidating our SELL position. Technical analysis of EUR/USD for January 16, 2014 2014-01-15 1389823830_eurusdh1.png Range and volatility: The EUR/USD pair set a range of 139 pips last week and this number of points which seems insignificant compared with a worth of this pair. Thus, according to previous events we expect a wider range this week that it will probably start from the price of 1.3582, and it will be continuing towards the strong resistance on January 16, 2014 at the 1.3685 level. Additionally, the volatility has calculated and found 189.27; therefore, the market indicates the higher volatility today, equally important it should be noted that the relation between the Volatility and the market movements lies in: so, lets say you did not close your position after 1H:30M, so after each 15 minutes the Volatility will be decreased Volatility - (Volatility 40/100) if you wait more then the trend can go against you at any moment. Because just after this lap of time the probability is that this Volatility decrease every 15 minutes. Trading recommendations: The price has still been trapped between 1.3575 and 1.3634. Below 1.3686 (100% of Fibonacci retracement levels and the double top) look for further downside with 1.3634 in order to retest the weekly pivot point and 1.3580 targets. Buy at 1.3583 (23.6% of Fibonacci retracement levels in H1 chart) with a first target of 1.3640, it might resume to 1.3670. Nevertheless, it should be placed a stop loss should be below of the first weekly support at the 1.3535 level. Technical analysis of USD/CHF for January 16, 2014 2014-01-15 1389828020_usdchfh1.png Overview: The USD/CHF pair has not shown signs of a break of the highest level of 0.9126, but it has opened today above the weekly support at the level of 0.9050; therefore, it will be a good sign to buy above the level of 0.9050 with the first target of 0.9115 and resume to 0.9145 in order to form a new double top on January 16, 2013. However, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9050, then the market will lead to further decline to 0.9004 (00% Fibonacci retracement levels) for testing the double bottom of the last week, as well as it will be able to indicate the correction movement at this level. Meanwhile, in the H1 chart represents a strong support at the first weekly support at 0.8977, besides the channel emerging of RSI has still positive in the daily frame, for that the RSI calls for a new upleg at this level. Moreover it should be noted a point of view that the MA(100) would be more of a confirmation for uptrend but in a short term period. Daily analysis of major pairs for January 16, 2014 2014-01-15 EUR/USD: As it was forecasted, EUR/USD was able to reach the support line at 1.3600. The line has been tested repeatedly and could soon be breached to the downside (though it appears not easy), especially with the continuation of the current bearish pressure. There is a Bearish Confirmation Pattern in the chart, and so, the price should keep on going downwards. 1.png USD/CHF: As it was forecasted, the USD/CHF was able to reach the resistance level at 0.9100. The level has been tested repeatedly and could soon be breached to the upside, especially with the continuation of the current bullish pressure. There is a Bullish Confirmation Pattern in the chart, and so, the price should keep on going upwards. 2.png GBP/USD: Generally, it is expected that the fundamental figures coming out today would have impact on the markets, including the Cable. This pair has kept on being bearish – in spite of upswings and downswings on it. So, the rallies on it could be seen as opportunities to sell a little dearer. The price target remains at the accumulation territory of 1.6300. 3.png USD/JPY: This currency instrument keeps going upward after it has formed a ‘buy’ signal. The supply level at 105.00 is thus and easy target for the bulls, although the price could also breach that level to the upside. 4.png EUR/JPY: Like most other JPY pairs, this cross is also going upwards. A crossing of the supply zone at 143.00 to the upside would result in Bullish Confirmation Pattern in the chart. 5.png Technical analysis of EUR/USD for January 16, 2014 2014-01-15 !EU16012014.jpg When the European market opens, some economic news will be released such as German Final CPI m/m, ECB Monthly Bulletin, Italian Trade Balance, CPI y/y, Core CPI y/y .The US will release the most important economic data such as the US-Core CPI m/m, US-Unemployment Claims, U-CPI m/m, US-TIC Long-Term Purchases, US-NAHB Housing Market Index, US-Natural Gas Storage, so amid the reports, EUR/USD will move with medium to high volatility during this day. TODAYs TECHNICAL LEVELS: Breakout BUY level: 1.3663. Strong Resistance:1.3655. Original Resistance: 1.3642. Inner Sell Area: 1.3629. Target Inner Area: 1.3597. Inner Buy Area: 1.3565. Original Support: 1.3552. Strong Support: 1.3529. Breakout SELL level: 1.3531. DESCRIPTION: Today EUR/USD has support and resistance at 1.3552 and 1.3642. The rate is accompanied by strong support at 1.3529 and by 1.3655 as strong resistance. If EUR/USD breaks out and closes below the 1.3531 level today, then it will indicate considerable bearish strength. Meanwhile, if EUR/USD manages to break out and closes above the 1.3663 level, then it will denote high bullish strength. Alternatively, for advance traders, you can trade in a way to open a BUY position at the level of 1.3565 and at 1.3629, a SELL position. In this case both targets should be placed at the level of 1.3597.
Posted on: Thu, 16 Jan 2014 09:32:44 +0000
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