EURUSD – The EURUSD Trying to Develop a Correction
The EURUSD keeps trying to form the basis near the 28th figure, and there has already been seen some progress in this regard. Despite the negative weekly close with a further decrease, the pair managed to stay above the current support and increased to the resistance of 1.2880 which was broken through during the Asian session, having allowed the euro to test the 1.2894 level. There is no doubt that the matter in hand is about the recovery after a large-scale reduction, contributed by the pair’s state of being oversold on the 4 hour chart. The single currency remains negative, but it may recover to the 30th figure, and only the growth and ability to consolidate higher would signal a possible trend reversal. Until then, the pair is at the continuous risks of resuming its decrease.
GBPUSD – The GBPUSD May Increase to 1.5000 — 1.5040
As expected, the pair’s state of being oversold, as well as the rate’s nearing to the strong support levels caused profit-taking by the short-term players, due to which the pound found the support at 1.4858 with its following recovery and increase to 1.4971. Similar to the EURUSD, there is a clear correction after the pair’s plummeting. The immediate target of the correction can be the 1.5000 – 1.5040 levels’ proximity – the increase up to 1.5175 is wise to be taken into account as well. Only if the pair increases above 1.5200, it will be advisable to anticipate the downtrend completion, as well as development of the upward movement.
USDCHF – The USDCHF Remains Positive
The dollar is rather confident being in pair with the Swiss franc. The bears managed to break below the support at 0.9624, but the USDCHF is testing the current highs around 0.9666 due to the Swiss franc’s weakness in the EURCHFcross-rate. The USDCHF remains positive, but its state of being overbought on the 4 hour chart could trigger profit-taking, as well as development of a downward correction with the immediate target at the level of 0.9555. The drop below would weaken the bullish momentum.
USDJPY – The USDJPY Finds Support at 100.80
The USDJPY was gradually moving away from the 101.53 high reached yesterday, but the decrease was limited by the support near 100.80. The rebound from this level allows the dollar to demonstrate a positive trend again. Consequently, it has already tested the 101.29 level. As long as the pair is trading above the ascending support line, the bulls can count on the continued increase, but the breakdown of the resistance will increase the upward momentum with a subsequent increase to 102. If the dollar decreases below the 99th figure, this will mean the trend reversal, as well as the downward correction in USDJPY.
