Daily analysis of major pairs for July 11, 2014 2014-07-11 EUR/USD: This pair has been subject to whipsaws recently, with no protracted directional movements. Signals have been short-lived and not favorable to swing traders. Therefore, the condition in the market is favorable to intraday traders and scalpers, but not to swing and position traders. A swing trader would need to wait till the price breaks the resistance line at 1.3650 to the upside or the support line at 1.3600 to the downside. 1.png USD/CHF: This market is also a victim of whipsaws that the EUR/USD pair is currently subject to. For a particular direction to be very vivid, the price would either need to break the resistance level at 0.8950 to the upside or the support level at 0.8900 to the downside. After this, swing traders can swing into action. 2.png GBP/USD: In spite of the consolidation phase in this market, the bullish bias is still valid. It is more likely that when a sustained trading move resumes, it would be in the direction of an uptrend. Eventually, the price may break the distribution territory at 1.7150 to the upside. 3.png USD/JPY: As it was expected, the USD/JPY pair was able to close below the supply level at 101.50. Although there is a weak upward bounce in the market, the price could test the demand level at 101.00. After this, the market could make further attempt to go towards the demand level at 100.50. 4.png EUR/JPY: The price action in the chart is clearly bearish, and this cross is expected to go further downwards. The price is currently under the supply level at 138.00; plus the current upwards bounce is supposed to be contained at that level. 5.png Technical analysis of EUR/USD for July 11, 2014 2014-07-11 eurusdh1.png Trading recommendations: Depending on the previous events, the price of the EUR/USD pair will be moved between the levels of 1.3585 and 1.3630. Buy above the price 1.3585 (100% of Fibonacci retracement levels) with the first target at 1.3629 in order to test the weekly pivot point, it might resume to 1.3667. Below 1.3675 (78.6% of Fibonacci retracement levels), look for further downside with the 1.3630 and 1.3580 targets. Tools of chart: Pair: EUR/USD. The trend was not so clear (sideways). The resistance will be set at the price of 1.3667 and the support stood at the 1.3585 price. We expect a range of 82 pips. At the level of 1.3585, a double bottom will be formed. The 1.3626 level is representing the weekly pivot point. The value of 50% Fibonacci retracement levels is: (High + Low) / 2 = 1.3642. (The key level to confirm the bullish market). Volatility is 122.84, so the market has called for a high volatility. Technical analysis of GBP/USD for July 11, 2014 2014-07-11 Overview: The GBP/USD pair was not stable and the trend was not also so clear as well (it was tight sideway range). Moreover, according to the previous events, the price is going to move between the level of 1.7100 and 1.7180. So, we should be careful in this area. Therefore, wait for a period of tight sideways range market before breakouts. Then, the market is likely to start showing the signs of the bullish market from the support level of 1.7115. In other words, it will be a good sign to buy above 1.7115 with the first target of 1.7179 for testing the double top. It will climb towards 1.7225. However, if the pair does not break 1.7230, the market will indicate a bearish opportunity below resistance. Also, it should be noted that the resistance will be set at the level of 1.6473. Probably, the market will call for the downtrend from the level of 1.7230 (the maximum price on July 11, 2014) in order to continue the bearish move towards 1.7116 (the weekly pivot point).
Posted on: Fri, 11 Jul 2014 15:37:31 +0000