Technical Analysis for Major Currencies

04/17/2015 9:00 am EST

Focus: CURRENCIES

The staff at ICN.com takes a technical look at the major currencies and provides support and resistance levels for each, as well as recommendations based on the directions they may take next.

EURO

In accordance with our Wednesday suggested bullish scenario, the EUR/USD pair has soared from 1.0570—just 10 pips below entry point—towards the target areas. The pair may breach 61.8% Fibonacci after forming long white candlestick and that should open the door up towards 10835 boundaries. The interim support that should hold to protect intraday bulls resides at 1.0580.

Support: 1.0650, 1.0620, 1.0580, 1.0535, 1.0500
Resistance: 1.0710, 1.0730, 1.0770, 1.0835, 1.0850

Recommendation: Positive above 1.0650 with risk limit at 1.0560.

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GBP

From 1.4700—proposed entry—to our upside target at 1.4830, the pair has achieved the bullish scenario. Currently, traders are facing a very tough obstacle, but positive sign on MACD in addition to stability above linear regression should help them to breach 1.4830 aiming to challenge 1.4925 regions. We remain bullish Thursday.

Support: 1.4800, 1.4755, 1.4700, 1.4630, 1.4550
Resistance: 1.4830, 1.4895, 1.4925, 1.4960, 1.5025

Recommendation: Positive above 1.4790 with risk limit at 1.4680.

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JPY

The USDJPY pair touched arias around 50% Fibonacci correction located at 118.95 and could not achieve stabilization below it. Although linear regression indicators still negative, RSI14 indicators showing a positive sign suggests another bullish pullback. Moreover, MACD histogram is increasing gradually.

Therefore, we believe that the pair will try to rise Thursday to breach up 119.65 level, which will open the door to visit 120.00 arias again.

Support: 119.30, 118.95, 118.70, 118.55, 118.25
Resistance: 119.65, 119.85, 120.00, 120.55, 120.85

Recommendation: Bullish above 119.30, risk limit below 118.70.

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CHF

The USDCHF pair dropped Wednesday—as we expected—and now is trading between 50% and 61.8% Fibonacci corrections located at 0.9670 and 0.9625. Linear regression indicators are negative, and MACD signal lines crossed down the zero line. Therefore, more bearishness awaited Thursday.

Trading below 0.9755 is needed to keep the bearish expectation valid, while trading below 0.9715 will keep a higher probability for more bearishness Thursday.

Support: 0.9625, 0.9595, 0.9560, 0.9525, 0.9480
Resistance: 0.9670, 0.9715, 0.9775, 0.9815, 0.9830

Recommendation: Bearish below 0.9670, risk limit above 0.9720.

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CAD

USD/CAD pair dropped sharply after breaching 1.2400 support level. Moreover, the pair breached down 23.6% Fibonacci level for the entire long-term up wave as the daily chart shows. Therefore, more bearishness is awaited now, targeting 1.1990 next Fibonacci level.

Trading below 1.2310 will keep the strong bearish pressure the next period.

Support: 1.2250, 1.2210, 1.2130, 1.2105, 1.2040
Resistance: 1.2310, 1.2355, 1.2405, 1.2460, 1.2500

Recommendation: Negative below 1.2310, risk limit above 1.2405.

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AUD

The AUD/USD pair rose sharply to achieve trading above 0.7735 level. Trading above 0.7735 confirmed a bullish wave that may extend to test 0.7940 level and maybe 0.8000.

Trading above 0.7545 is needed to keep the bullish expectation valid, however, we prefer to see the pair trading above 0.7660 for more confirmation.

Support: 0.7735, 0.7700, 0.7685, 0.7660, 0.7620
Resistance: 0.7770, 0.7805, 0.7845, 0.7875, 0.7940

Recommendation: Bullish above 0.7730, risk limit below 0.7620.

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NZD

The NZD/USD rose and breached the main resistance of the sideways triangle that we can consider as a continuation pattern. Trading above 0.7415 will keep the bullishness valid, while trading above 0.7525 will keep a higher probability for another bullish wave.

From the upside, breaching up 0.7700 will cause another sharp wave toward 0.7845.

Support: 0.7580, 0.7545, 0.7500, 0.7460, 0.7415
Resistance: 0.7615, 0.7645, 0.7670, 0.7730, 0.7765

Recommendation: Bullish above 0.7580, risk limit below 0.7500.

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By the staff of ICN.com

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