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Technical Analysis (2016-02-05)

EUR/USD
Previous Day Range High: 1.1240 Low: 1.1070 Close: 1.1207
Technical Chart Resistance
R-2:1.1025
R-1:1.0982





Support
S-1:1.0880
S-2:1.0822



Forecast
High:1.0982
Low:1.0880






The sideway pattern from 1.1059 is still in progress and intraday bias stays neutral first. On the downside, below 1.0707 will turn bias to the downside for 1.0461/0517 support zone. Meanwhile, above 1.1059 will bring another rise. Overall, we're treating price actions from 1.0461 low as a corrective pattern. Hence, in case of further rebound, we'd expect strong resistance around 38.2% retracement of 1.3993 to 1.0461 at 1.1810 to limit upside and bring down trend resumption eventually.



USD/JPY
Previous Day Range High: 118.24 Low: 116.53 Close: 116.72
Technical Chart Resistance
R-2:119.32
R-1:119.07







Support
S-1:118.49
S-2:118.17



Forecast
High:119.07
Low:118.49







USD/JPY's rebound from 115.96 is still in progress. Further rise is in favor to 120.33 support turned resistance first. Break will target 123.74 next. Overall, price actions from 125.85 are viewed as a sideway consolidation pattern and we'll hold on to this view as long as 115.96 support holds.



GBP/USD
Previous Day Range High: 1.4668 Low: 1.4530 Close: 1.4587
Technical Chart Resistance
R-2:1.4507
R-1:1.4430





Support
S-1:1.4254
S-2:1.4155



Forecast
High:1.4430
Low:1.4254





Intraday bias in GBP/USD remains neutral for the moment as the consolidation from 1.4079 continues. Stronger recovery cannot be ruled out. But upside should be limited by 38.2% retracement from 1.5239 to 1.4079 at 1.4522 and bring fall resumption. Below 1.4079 will target 1.3503 low next.



USD/CHF
Previous Day Range High: 1.0074 Low: 0.9923 Close: 0.9926
Technical Chart Resistance
R-2:1.0219
R-1:1.0178





Support
S-1:1.0104
S-2:1.0070



Forecast
High:1.0178
Low:1.0104





Intraday bias in USD/CHF is turned neutral with break of 1.0116 minor support. As noted before, the rebound from 0.9874 is having a corrective structure. Thus, even in case of another rise, we'd expect strong resistance below 1.0327 to bring near term reversal. Meanwhile, break of 0.9989 support will indicate completion of such rebound and turn bias to the downside for a test on 0.9784 low.



AUD/USD
Previous Day Range High: 0.7243 Low: 0.7154 Close: 0.7195
Technical Chart Resistance
R-2:0.7193
R-1:0.7138





Support
S-1:0.7018
S-2:0.6953




Forecast
High:0.7138
Low:0.7018





As aussie has rebounded again after finding renewed buying interest at 0.6875 and broke above resistance at 0.6959, adding credence to our view that a temporary low has been formed at 0.6827 earlier, hence consolidation with upside bias is seen for test of resistance at 0.7049 resistance, break there would encourage for correction of recent selloff to 0.7075-80 (previous resistance and 50% Fibonacci retracement) but reckon upside would be limited to 0.7135-40 (61.8% Fibonacci retracement), bring retreat later.



USD/CAD
Previous Day Range High: 1.3797 Low: 1.3640 Close: 1.3754
Technical Chart Resistance
R-2:1.4210
R-1:1.4122





Support
S-1:1.3947
S-2:1.3860



Forecast
High:1.4122
Low:1.3947





The Federal Open Market Committee left its key interest rate on hold yesterday. Interest rates remain unchanged at 0.25-0.5% and the tone subdued. The FED will be "closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation, and for the balance of risks to the outlook." This morning we have no change in many currency pairs as well as US equities, as the market will adjust on fundamentals. There are no economic releases in Canada today. Out of the US at 8:30 am we had weekly initial jobless claims headlined at 278K and Core Durable Goods Orders -1.2% vs -0.1%, then at 10 am we have Pending Home Sales. We continue to follow the Shanghai exchange, which was down 2.9%. WTI crude made gains of 1.34% trading at 32.6 a barrel.

We expect a range today of 1.4018 to 1.4138.