Continuation of Tuesday’s sell-off did not take place yesterday—the support at 1.26, represented by the weekly S1 and Bollinger band, remains intact. In case of a rally from here the currency pair will encounter 1.2660—2012 Q4 low. If the bulls keep pushing the price higher—there is a cluster of resistances at 1.2750, consisting of the 2013 low, weekly PP and falling trend-line that should prevent further appreciation of the Euro.
|EURUSD Pivot Levels||Pivot||Woodie||Fibonacci|
After hitting the weekly S1 during yesterday’s trading sessions, GBPUSD is currently moving counter the major trend—towards the negatively-sloped line at 1.63. Considering that this resistance is also reinforced by the monthly PP and 23.6% Fibo, the chance of the Sterling rising above this supply area is low. Instead, the pair is expected to resume the decline and re-visit this year’s lowest point at 1.6050, as suggested by the daily and weekly studies.
|GBPUSD Pivot Levels||Pivot||Woodie||Fibonacci|
As it turned out, USDJPY did not have to touch the 2008 high in order to come under strong selling pressure. Right now the spot is 100 pips below the Tuesday’s close, as the weekly PP and 2008 Sep high at 109 failed to provide sufficient support. At the moment the U.S. Dollar is facing the weekly S1 at 108.50, but this downward correction has the potential to extend to 108. Here the bears should be stopped by the monthly PP and two-month up-trend.
|USDJPY Pivot Levels
USDCHF keeps standing close to the resistance at 0.9586/78. If the sellers here manage to send the price down to 0.9450—the risk of a break-out to the downside will substantially increase, since the market will confirm formation of a rising wedge. Conversely, the if Greenback continues to appreciate and ignores the nearby resistances, the next target will be the 2013 Q3 high and weekly R3 at 0.9750 before the 2013 high 0.9840.
|USDCHF Pivot Levels||Pivot||Woodie||Fibonacci|