In Swissquote’s Monday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for GBP/USD and USD/CAD. To view and download the entire report, click here.
GBP/USD: Bouncing near the 200 day moving average
• GBP/USD is trying to bounce near the key support at 1.6693 (see also the 38.2% retracement and the 200 day moving average). Hourly resistances stand at 1.6844 (13/08/2014 high) and 1.6893 (01/08/2014 high).
• In the longer term, the break of the major resistance at 1.7043 (05/08/2009 high) calls for further strength. Resistances can be found at 1.7332 (see the 50% retracement of the 2008 decline) and 1.7447 (11/09/2008 low). A decisive break of the key support at 1.6693 (29/05/2014 low, see also the 200 day moving average) is needed to invalidate this bullish outlook.
USD/JPY: Further sideways moves likely
• USD/JPY continues to bounce after the sharp bullish intraday reversal (hammer) made on 8 August. However, the key resistance at 103.02/103.09 (30/07/2014 high) will be hard to break. An hourly resistance lies at 102.72 (15/08/2014 high). Hourly supports can be found at 102.02 (11/08/2014 low) and 101.51.
• A long-term bullish bias is favoured 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).