In Swissquote’s Thursday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for EUR/USD and USD/JPY. To view and download the entire report, click here (PDF).
EUR/USD – Pausing
• EUR/USD is trying to bounce from its oversold decline. However, the hourly resistance at 1.2988 (05/09/2014 high) has held thus far. Another hourly resistance can be found at 1.3110 (02/09/2014 low). A break of the hourly support at 1.2860 would signal the resumption of the underlying downtrend.
• In the longer term, EUR/USD is in a succession of lower highs and lower lows since May 2014. The break of the key support at 1.3105 (06/09/2013 low) opens the way for a decline towards the strong support area between 1.2755 (09/07/2013 low) and 1.2662 (13/11/2012 low). A key resistance lies at 1.3221 (28/08/2014 high).
USD/JPY – No signs of weakening momentum yet
• USD/JPY continues its steep rise despite deep short-term overbought conditions. The technical structure remains positive as long as the support at 106.04 holds. An hourly support can be found at 106.64.
• A long-term bullish bias is favoured as long as the key support 100.76 (04/02/2014 low) holds. The break to the upside out of the consolidation phase between 100.76 (04/02/2014 low) and 103.02 favours a resumption of the underlying bullish trend. A test of the major resistance at 110.66 (15/08/2008 high) is expected.
