Daily Technical Outlook

Daily Forex Technicals | Written by Innerfx | Aug 26 09 06:31 GMT |

EURUSD The euro has been relatively quiet against the dollar on yesterday, its rally from the 1.4250 region has been capped at 1.4360 and the daily bar has closed a few points below the open rate. The pair trades into the same region as 24 hours ago therefore we look at the same support and resistance levels. While the intra-day sentiment is slightly bearish, the short-term momentum remains positive as the current bullish structure is under development. Extended pullbacks may reach lows below yesterday's bottom but the 1.4210 and 1.4170 level will probably limit such losses. On the upside, first intra-day barrier is formed by a descending trend line coming from 1.4445, now seen into the 1.4350 region. Above 1.4350 comes 1.4375 and 1.4445/50. The German Ifo Business Climate Index at 9:00 GMT may be a good catalyst on pushing the Euro higher. Current quote is 1.4305 @06:10 GMT Support: 1.4250, 1.4210 and 1.4170 Resistance: 1.4350, 1.4375 and 1.4445/50 USDJPY Another day on testing 94.00, yet another day closing a few points higher - while the 94.00 mark provides a stable support, with its goods and its bads such as the few spikes below down to 93.40, the signs of a potential dollar recovery against the Yen are quite obvious. 95.00 has to be taken out in order to confirm the beginning of a correction. While 95.00 is intact, expect more pressure on the support region around the 94.00 handle. Intra-day sentiment is positive at the time of writing this and first target is set at 94.60. A break above should open 95.00 which is were the key resistance stands. Current quote is 94:25 @06:10 GMT Support: 94.00, 93.40/50 and 93.00 Resistance: 94.50/60, 95.00 and 95.50/70 GBPUSD Channel's support into the 1.6300-1.6330 zone is under pressure as the cable has reached a fresh low at 1.6305 a bit earlier today. A potential break down below the said bottom line could confirm a reversal of the current medium term uptrend. Another channel is formed on the hourly charts, but on the opposite direction (downwards), as seen on the hourly chart below. A break above the resistance band around 1.6385, out of the hourly channel, should favor further gains towards 1.6500, into a 'safe zone' far from the notable support of 1.6300/30. Current quote is 1.6342 @06:10 GMT Support: 1.6300/30, 1.6250 and 1.6200 Resistance 1.6385/00, 1.6450 and 1.6500 Innerfx Legal disclaimer and risk disclosure InnerFX and/or its author(s) shall not be responsible for any loss arising from any investment or trading decision based on any recommendation, forecast, strategy or other information herein contained. The contents of this article should not be construed as an express or implied promise, guarantee or implication by InnerFX and/or its author(s) that readers and subscribers will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations / strategy in an analysis, especially leveraged investments such as Foreign Exchange trading and investment in derivatives, can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis do not occur as anticipated. Trading in the Currency Exchange market is a challenging opportunity where above average returns are available to educated and experienced investors who are willing to take above average risk. Past performance does not guarantee similar performance in the future. Check http://www.innerfx.com/disclaimer for full disclaimer. You may not post this (or part of this) article to forums, newsgroups, mailing lists, electronic bulletin boards, websites, or other services, without the prior written consent of InnerFX.