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Technical Analysis (2015-01-28)

EUR/USD
Previous Day Range High: 1.1423 Low: 1.1224 Close: 1.1378
Technical Chart Resistance
R-2:1.1540
R-1:1.1459






Support
S-1:1.1260
S-2:1.1143



Forecast
High:1.1459
Low:1.1260










The recovery from 1.1096 temporary low extends today and intraday bias remains neutral for some more consolidations. Upside of recovery should be limited below 1.1678 resistance and bring fall resumption. Below 1.1096 will extend current fall to next fibonacci level at 1.0283.
USD/JPY
Previous Day Range High: 118.66 Low: 117.34 Close: 117.86
Technical Chart Resistance
R-2:119.27
R-1:118.57








Support
S-1:117.25
S-2:116.63




Forecast
High:118.57
Low:117.25









The USD/JPY pair broke higher during the course of the day, but still remains within the consolidation area of that we have been in for some time. With that, we believe that the market still continues look bullish overall, but really at this point time seems to be taking a bit of a break. Ultimately, we believe the market is going to reach for the 120 level, and then the 122 handle. Above there, we should head to the hundred and 25 level, and we believe the pullbacks will continue to be buying opportunities.
GBP/USD
Previous Day Range High: 1.5224 Low: 1.5060 Close: 1.5197
Technical Chart Resistance
R-2:1.5324
R-1:1.5261






Support
S-1:1.5097
S-2:1.4996




Forecast
High:1.5261
Low:1.5097





The recovery from 1.4950 extends higher today but is held below 1.5268 resistance intact. Intraday bias remains neutral and near term outlook stays bearish for deeper decline ahead. Below 1.4950 will target next key support level at 1.4813. Though, considering bullish convergence condition in 4 hours MACD, break of 1.5268 will indicate short term bottoming and bring stronger rebound back to 55 days EMA (now at 1.5475).
USD/CHF
Previous Day Range High: 0.9166 Low: 0.8937 Close: 0.9018
Technical Chart Resistance
R-2:0.9270
R-1:0.9144







Support
S-1:0.8914
S-2:0.8811




Forecast
High:0.9144
Low:0.8914







The corrective recovery in USD/CHF extended higher and met 4 hours 55 EMA. More recovery might be seen and corrective trading would continue in near term. We'll stay away from USD/CHF for the moment and assess the outlook later. Overall, medium term rebound from 0.7070 has completed at 1.0240. The corrective three wave structure argue that the multi-decade down trend is resuming for a new low below 0.7070.







AUD/USD
Previous Day Range High: 0.7975 Low: 0.7906 Close: 0.7928
Technical Chart Resistance
R-2:0.8005
R-1:0.7967










Support
S-1:0.7898
S-2:0.7868




Forecast
High:0.7967
Low:0.7898





The Australian dollar has recouped some of the losses suffered into the close of trade last week and in early trade Monday holding above 0.79 throughout Tuesday. A slightly stronger than expected NAB business confidence report helped add some support although offered little to suggest local business expects a significant upswing in market conditions. Softer than expected US durable goods orders helped the Aussie touch session highs of 0.7974 but any significant advance was hampered by falling copper prices as the precious metal neared 5 year lows on the London Metals Exchange. Attentions are keenly focused on today’s fourth quarter CPI report ahead of next week’s RBA meeting for local direction while the FOMC rate statement remains the big ticket item driving investors.

We expect a range today of 0.7810 – 0.8120
USD/CAD
Previous Day Range High: 1.2500 Low: 1.2380 Close: 1.2392
Technical Chart Resistance
R-2:1.2544
R-1:1.2468






Support
S-1:1.2348
S-2:1.2304




Forecast
High:1.2468
Low:1.2348





USDCAD tested the 1.2500 or 80 cent level last night highlighting that this key psychological level is acting like a magnet for the pair. Focus is beginning to turn to the FOMC meeting starting today and the statement at 2:00 PM tomorrow. Expectation is the central bank will stick to the same message which will be supportive of the USD. After the recent surprises from other banks in the last few weeks the market will be on edge as the announcement approaches. With no domestic data on deck for Canada our Loonie will continue to be driven by oil and the US data being released today, (Durable Goods, Consumer Confidence, New Home Sales). Next levels of resistance for USDCAD are 1.2520 and 1.2683 (Jan 2004 low). To see any retracement for the pair we need to observe a close below 1.2340.

We expect a range today of 1.2420 to 1.2515