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Technical Analysis (2015-05-26)

EUR/USD
Previous Day Range High: 1.1010 Low: 1.0959 Close: 1.0981
Technical Chart Resistance
R-2:1.1034
R-1:1.1007






Support
S-1:1.0957
S-2:1.0933




Forecast
High:1.1007
Low:1.0957










EUR/USD's fall last week and suggests that rebound from 1.0461 could have completed at 1.1466 already, well below. 38.2% retracement of 1.3993 to 1.0461 at 1.1810. Initial bias remains on the downside this week for retesting 1.0461/0520 support zone. Meanwhile, above 1.1207 minor resistance will dampen this bearish view and turn focus back to 1.1466.
USD/JPY
Previous Day Range High: 121.78 Low: 121.45 Close: 121.49
Technical Chart Resistance
R-2:121.90
R-1:121.69









Support
S-1:121.36
S-2:121.24




Forecast
High:121.69
Low:121.36









USD/JPY's rise and break of 120.50 minor resistance aurges that the sideway pattern from 122.01 could have completed at 118.88 already. And, the larger up trend might be resuming too. Initial bias remains on the upside this week for 122.01 first. Break will target next key resistance at 124.13. Nonetheless, we'd stay cautious before the breakout. Below 120.63 minor support will turn bias neutral again and would probably extend recent range trading.
GBP/USD
Previous Day Range High: 1.5508 Low: 1.5457 Close: 1.5466
Technical Chart Resistance
R-2:1.5528
R-1:1.5497






Support
S-1:1.5446
S-2:1.5426




Forecast
High:1.5497
Low:1.5446





GBP/USD stayed in consolidation below 1.5814 last week and outlook is unchanged. Initial bias remains neutral this week first. In case of deeper pull back, we'd expect strong support from 1.5088/5496 to contain downside and bring another rally. Above 1.5814 will target 61.8% retracement of 1.7190 to 1.4565 at 1.6187. At this point, we're slightly favoring that the rebound from 1.4565 as a correction. Thus, break of 1.5088 will indicate that such rebound is completed and turn focus back to 1.4565 low.
USD/CHF
Previous Day Range High: 0.9457 Low: 0.9406 Close: 0.9455
Technical Chart Resistance
R-2:0.9490
R-1:0.9473







Support
S-1:0.9422
S-2:0.9388



Forecast
High:0.9473
Low:0.9422







USD/CHF's rebound from 0.9072 extended higher last week. The developments argues that the down trend from 1.0127 might be reversing. Initial bias remains on the upside this week for 0.9862 resistance next. Break will confirm this bullish case. On the downside, below 0.9285 minor support will dampen this bullish view and turn bias back to the downside for 0.9072 support.
AUD/USD
Previous Day Range High: 0.7840 Low: 0.7804 Close: 0.7827
Technical Chart Resistance
R-2:0.7859
R-1:0.7843










Support
S-1:0.7807
S-2:0.7788




Forecast
High:0.7843
Low:0.7807






It’s been a very subdued 24 hour window for the Australian dollar which has traded in a tight range when valued against its US Counterpart. With a low of 0.7803 being countered by a high of 0.7839 a US public holiday mixed with a light economic docket locally has offered up very little for investors during the early parts of this week. Opening this morning virtually unchanged at 0.7823 US Consumer confidence numbers will be closely scrutinized as policy makers continue to look towards broader signs of economic health outside of labour market improvements, as the world’s largest economy relies heavily upon confidence to drive spending and ultimately growth.

We expect a range today of 0.7780 – 0.7860
USD/CAD
Previous Day Range High: 1.2318 Low: 1.2276 Close: 1.2308
Technical Chart Resistance
R-2:1.2343
R-1:1.2326






Support
S-1:1.2283
S-2:1.2258




Forecast
High:1.2326
Low:1.2283






Markets are quiet and on holiday trading with the US celebrating Memorial Day. Chair Yellen spoke on Friday and sounded a little more hawkish, as she is in favour for a rate hike towards the end of 2015, if there is enough improvement in the US economy. Employment data will be the main focus, as this is main factor the FED will be considering. Bank of Canada will release their statement on Wednesday and Q1 GDP on Friday. Also, 5 major Canadian banks will be releasing their earnings throughout this week. The USD/CAD is currently trading at 1.2293.

We expect a range today of 1.2268 to 1.2322