Aug 29 2007
Daily Forex Technical Analysis
EUR/USD
The pair is now trading around 1.3600 which is the 50% Fibonacci level of the 1.3850/1.3360 move. If a breach up through that level will occur, we should see the pair initiating a further bullish move into the 1.3650 move. The daily chart is supporting the bullish notion, as the slow stochastic floats around 40, which indicates some more room to extend up.
GBP/USD
The cable is floating at the upper levels of the downward channel that is forming on the daily chart. Together with the slow stochastic and RSI which are both at the 50 level, a bearish signal is created with the next target price located 1.9960. The 4 hour chart is showing a slight oversold level which might sustain the move down on the short range.
USD/JPY
The 4 hour chart is showing two consecutive green bars, and the slow stochastic is showing two bullish crosses under the 20 level. The RSI has violently crossed the 20 level from above which strengthens the notion that on the short run a reverse move is imminent. Traders should pay attention to the fact that the dailies are still bearish, and there is still more room to go down on a longer time scale.
USD/CHF
The daily chart is showing that there is great uncertainty in the pair movement, as most of the recent bars in the daily chart are wide doji. This indicates that although there is some price movements, the open and close price are very similar. There was an attempt to break through the 1.1960 levels a gain yesterday, and it failed, which means that the support level is still very strong. The hourlies are showing slight bearish momentum, and in general the trend is unclear.
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