USD/CHF bounce or break?
Price dropped sharply in the yesterday’s trading session and looks unstoppable on the Daily chart, is located above right below the 0.9500 psychological level, but above 0.9492 yesterday’s low.
Technically could drop further as the USDX is under massive selling pressure, the index is approaching the 94.00 psychological level, a breakdown below this obstacle will confirm a further decrease. USDX is trading in the red and could approach also the 92.49 static support, where he could find strong demand.
Unfortunately, we don’t have any reversal sign on the USDX, so the dollar should depreciate further versus its major rivals. Personally, I believe that only the fundamental factors could save it from downside, but the data are expected to come in mixed, so is less likely to see a USD rally.
Price is trading in the red and tries to take out the support from 0.9498 static obstacle, a valid breakdown will confirm a further decrease towards the major support from 0.9440 level.
You should know that the pair is moving sideways on the long term, we’ll see what will happen when will hit the 0.9440 long term support.
Is on a declining path as long as is trading within the descending pitchfork’s body, a bounce back could come from the 0.9440 level because a valid breakdown below this level will open the door for more declines in the upcoming months.
USD/JPY breakdown underway
USD/JPY is trading in the red right now and could take out some important support levels as the USDX continues to drop. Is trading much below the 112.00 level and is approaching an important support level, may increase only if the Nikkei will stay above the 20058 static resistance.
The JP225 has decreased a little today, but could only retest the 20058 level before will climb higher, the index is narrowing on the short term, needs a bullish spark to be able to jump much above the 20320 previous high.
Has broken below the confluence area formed at the intersection between the downtrend line with the 150% Fibonacci line (ascending dotted line), but only a valid breakdown below the 38.2% retracement level will confirm a further drop towards the 50% retracement level and towards the first warning line (wl1).
EUR/JPY targeting new highs
EUR/JPY bounced back from median line (ml) of the minor ascending pitchfork and now is approaching the 130.75 previous high, technically should increase further in the upcoming period. The next upside target will be at the 150% Fibonacci line, only a breakdown below the UML, median line (ml) and below the 38.2% retracement level will invalidate a further upside movement.
