USD to Consolidate Weakness; EUR Bid

 
   By Francis Bray, CFTe MSTA 
   A DOW JONES NEWSWIRES COLUMN 
 

        LONDON (Dow Jones)--Rolling 24-hour chart levels:
        Intraday EUR/USD: Comes within striking distance of the 1.12 target area, following Wednesday's surge through 1.10. That strength extends the bull wave from the Apr. 13 higher low at 1.0520, and Wednesday's eight-week high at 1.1188 will become the focus of attention on a break above 1.1148/55. The wave's 1.618 Fibonacci extension target lands at 1.1203. Support at 1.1071 and 1.1008 limit scope for weakness during Thursday's session.
        Weekly chart EUR/USD trend: Bullish.
        Intraday USD/JPY: Presses lower, to challenge last week's low at 118.52. The push lower is part of decline from the Apr. 23 intra-wave lower high at 120.10, and further weakness to the Mar. 26 reaction low at 118.33 is expected. Furthermore, a downwave equality target lies at 118.11. Resistance at 118.99 hampers scope for corrective upside risk, and only a push into new session highs above 119.18 would question the bearish outlook.
        Weekly chart USD/JPY trend: Bearish.
        Intraday GBP/USD: The 1.55 level is the focus, following Wednesday's push to a two-month high. The push to 1.5496 extends the near three-week bull wave from the Apr. 13 reaction low at 1.4568, and the previous reaction high at 1.5550 has become accessible during the coming sessions. The 200-day falling moving average lies just above 1.5550. Support at 1.5335 would have to be broken to offer scope for additional downside risk.
        Weekly chart GBP/USD trend: Bullish.
        Intraday USD/CHF: Wednesday's weakness completed a bearish Head-and-Shoulders continuation pattern on the daily chart, putting USD bears in control. Wednesday's plunge below 0.9483 set a ten-week low, and downside risk has been signalled to 0.9225 and 0.9195 in the broader-term. Recapturing ground above 0.9435 would provide respite, but former range lows at 0.9495 reverse polarity to form strong resistance.
        Weekly chart USD/CHF trend: Bearish.
        Intraday EUR/GBP: The probe above 0.72 on Wednesday should give near-term EUR bulls further encouragement. The successful defence of the 0.7118 low this week switches the focus onto resistance at 0.7230, and a fresh attack on 0.7230 should be expected. However, a break above 0.7246 and 0.7265 is required to put EUR bulls in control of the short-term. Weakness will attract support while above 0.7167.
        Weekly chart EUR/GBP trend: Bearish.
        Intraday EUR/JPY: Consolidates beneath Wednesday's eight-week high at 132.89, and corrective downside scope exists to the 130.65 area. However, support at 131.20 and 130.80 should prevent 130.65 from being tested during Thursday's session. Recapturing ground above 132.25 is required to re-open the 132.89 high.
        Weekly chart EUR/JPY trend: Range.
        Intraday EUR/CHF: Falls back from Wednesday's five-week high at 1.0508, and weakness targets projected support at 1.0392. Support also lies between 1.0360 and 1.0385 on the Market Profile chart, which should limit the move lower during Thursday's session. That said, the 1.0508 high is likely to remain out of reach, which has protection at 1.0485.
        Weekly chart EUR/CHF trend: Bearish.
        Intraday AUD/USD: Wednesday's bearish spinning top candle has been confirmed, offering downside consolidation of the powerful two week bull wave that set a three-month high at 0.8076. The correction lower has a downwave equality target at 0.7929 to meet, while carrying a deeper threat to 0.7892. Wednesday's peak at 0.8076 also keeps the broader three-month expanding symmetrical triangle pattern on the daily chart intact. Failure to meet the 0.7929 downside target, combined with a break above 0.8023 would re-open the 0.8076 high.
        Weekly chart AUD/USD trend: Range.
        * The pivot is the sum of the high, low and close divided by 3.
        For more technical analysis see: Dow Jones Newswires, N/DJTA; Bloomberg, NI DJTA; and Reuters key word search "INSI-DJN"
        By Francis Bray; Dow Jones Newswires; +44 (0)207 842 9249; francis.bray@dowjones.com
        Francis Bray is Dow Jones' chief technical analyst for Europe, and has worked as a technical analyst and trader for 20 years in London, Barcelona and Guernsey.
        Data provided by CQG International Ltd.
        This is a financial news and information service. It is provided in general terms and does not take account of or address any individual user's position. To the extent that this article includes suggestions as to various possible investment strategies which users might consider, it does so in only general terms without reference to the personal factors which should determine any user's investment decisions. Nothing contained in this service constitutes personalized investment advice. Dow Jones does not warrant the accuracy, completeness or timeliness of the information in this article, and any errors shall not be made the basis for any claim against Dow Jones. The author does not invest in the instruments or markets cited in this article. This article does not constitute or form part of any invitation or inducement to buy or sell any security.
        (END) Dow Jones Newswires

        April 30, 2015 04:21 ET (08:21 GMT)

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