Daily Technical Outlook

Daily Forex Technicals | Written by Innerfx | Sep 01 09 06:08 GMT |

EURUSD Support formed by the rising trend line coming from 1.4045 has provided a reversal point on yesterday's downside test and the euro holds steady into the 1.4350 region, 50 points below last week's top side. Above 1.4000, next upside barrier is emerging at 1.4045/50 which is also the yearly high. Since the euro holds steady into this elevated region, pips away from the mentioned high, it is quite obvious that it is only a matter of time until it will break higher, aiming towards fresh highs like 1.4620-1.4700. This week's economic schedule is full of important events such as the ISM Manufacturing Index later today, the FOMC Meeting Minutes tomorrow and the EU Interest Rate Decision along with the US NFP release later this week. Short term sentiment is positive and will remain intact as long as 1.4200 provides support on potential pullbacks. Current quote is 1.4352 @05:50 GMT Support: 1.4290/00, 1.4250 and 1.4175/00 Resistance: 1.4400, 1.4445/50 and 1.4500 GBPUSD On yesterday's report I mentioned about the indecision suggested by the last two candlesticks. Well, yesterday's candle would be 3′rd, as the behavior was similar - being rejected by the tested levels then returning into the day opening zone. Upside seem favored today - therefore keep an eye on 1.6375/00 which is an important upside objective. If market indecision is to remain valid, 1.6375/00 should cap, limiting gains before a pullback back into the 1.6250-1.6300 region. Personally I suspect a potential break above 1.6375/00 - to as high as 1.6440/50 which is the 61.8% of the last down leg from 1.6620. Short term sentiment is bearish, a breach above 1.6400/50 being required to confirm a trend reversal. Current quote is 1.6300 @05:50 GMT Support: 1.6250, 1.6150/80 and 1.6100 Resistance: 1.6375/00, 1.6440/50 and 1.6500 USDCAD It is quite interesting how the trend line from 1.0630 has provided both support and resistance throughout the entire month of August, as seen on the chart below. Downside is now under pressure since reaching the mentioned trend line on yesterday but the pair could deal with a parallel band lower, around 1.0835. If so, expect a bounce on 1.0800/35. Current quote is 1.0919 @05:50 GMT Support: 1.0900, 1.0835 and 1.0800 Resistance: 1.0950, 1.1000 and 1.1090/00 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.