AUDUSD – Daily Chart
The Aussie has made 3 rejections of the significant 0.7774 level, and the RSI is bearish. If price falls from here look for the fibonacci retracement levels of 0.214% and 0.382% as potential supports. The daily 50 moving average is currently at 0.7555, and looks to be approaching the 0.214 fibonacci retracement level, adding confluence to the zone.
Price is currently holding in a trading range, between the 0.7800 significant figure and the 0.7650 level. Price has struggled to find support at the trendline, as is currently squeezing between the short & long term moving averages. Look for a break of this trading range for clear direction.
The Fibre has stayed in a long term bull market since March last year. Price has recently retraced into the 0.382% fibonacci retracement level & the 50 moving average, and made a bounce from these confluences.
On the hourly chart, price has done a ‘break and retest’ of the descending trendline after finding support at the daily fibonacci level. The 50, 100 & 200 moving averages all lie below price, a bullish indication. There is also an intraday support /resistance zone just below the current market price. Our bias is for EURUSD upside this week.
The GBP has been a strong performer in the last few weeks, with positive vaccine news and a Brexit trade agreement both spurring Pound strength. Technically the pair is trading well above the moving averages, slowly grinding to the upside. The 127% fibonacci extension is just above current market price, at the 1.3810 level.
On the hourly chart, Cable has found support around the 100 & 200 moving averages and the 50% fibonacci level. The 1h 127% fibonacci extension correlates with the daily 127% level, giving added confluence to this zone.
USDCHF has found topside resistance around the 0.382% fibonacci retracement level, which also correlates with the 50 moving average. Price has had a strong day of selling pressure, followed by an indecision candle. We favour downside, and a break below yesterday’s low will be a signal for further downside.
Price has broken the corrective structure’s neckline, after rejecting out of the resistance level. The swissie is now trading below all the 1h moving averages, a very bearish indication. We are looking to see if price will retest the previous lows at 0.8770.
The USDJPY is currently testing the 50% fibonacci retracement level & 50 moving average as a resistance level, as the downtrend loses the front foot. Price also has the daily trendline just above market price as resistance, capping upside. The 50% fibonacci level has also been a significant support / resistance zone previously.
Price is cycling to the downside, forming lower highs and lower lows. If price manages to break the ascending support we anticipate downside, however price is currently squeezing into a wedge. Watch to see if USDJPY finds resistance around the daily confluence zone.