SWISSQUOTE Daily FX Technical Report – EUR/USD: Making new lows…

In SWISSQUOTE’S Wednesday short term technical trading report, their research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for the EUR/USD and USD/JPY. Download the full report by clicking here.

EUR/USD: Making new lows

• EUR/USD has failed to break the hourly resistance at 1.3444 (28/07/2014 high). The subsequent new (marginal) lows confirm an underlying downtrend. An initial resistance can be found at 1.3398 (intraday high).

• In the longer term, EUR/USD is in a succession of lower highs and lower lows since May 2014. The downside risk is given by 1.3210 (second leg lower after the rebound from 1.3503 to 1.3700). A strong support stands at 1.3296 (07/11/2013 low). A key resistance lies at 1.3549 (21/07/2014 high).


USD/JPY: Consolidating after its recent sharp rise

• USD/JPY is consolidating after the successful test of the key resistance at 103.02. The recent large daily shadows and dojis indicate market indecision. Monitor the short-term symmetrical triangle. A support stands at 102.36 (18/06/2014 high, see also the 38.2% retracement). Another support can be found at 102.04 (30/07/2014 low).

• A long-term bullish bias is favored as long as the key support 99.57 (19/11/2013 low) holds. However, a break to the upside out of the current consolidation phase between 100.76 (04/02/2014 low) and 103.02 is needed to resume the underlying bullish trend. Another resistance can be found at 104.13 (04/04/2014 high), while a major resistance stands at 110.66 (15/08/2008 high).


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