In Swissquote’s Tuesday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for USD/JPY and EUR/USD. To view and download the entire report, click here (PDF).
USD/JPY: Failing to hold above the resistance at 104.13.
• USD/JPY has failed to hold above the key resistance at 104.13, suggesting a potential false breakout. A break of the hourly support at 103.50 (22/08/2014 low) would confirm a deterioration of the short-term technical structure. Another support lies at 102.91 (intraday low, see also the rising trendline). A resistance can now be found at 104.49 (25/08/2014 high).
• 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. Strong resistances can be found at 105.44 (02/01/2014 high) and 110.66 (15/08/2008 high).
EUR/USD: Trying to bounce
• EUR/USD is trying to stabilise after its recent new lows. However, the short-term technical
structure is negative as long as prices remain below the hourly resistance at 1.3297 (22/08/2014 high). An initial resistance stands at 1.3242 (21/08/2014 low). An hourly support now stands at 1.3179 (intraday low).
• In the longer term, EUR/USD is in a succession of lower highs and lower lows since May 2014. A long-term decline towards the strong support area between 1.2755 (09/07/2013 low) and 1.2662
(13/11/2012 low) is favoured. However, in the shorter term, monitor the key support at 1.3105 (06/09/2013 low) given the general oversold conditions. A key resistance lies at 1.3444 (28/07/2014 high).
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