USD Back in Favour

 
   By Francis Bray, CFTe MSTA 
   A DOW JONES NEWSWIRES COLUMN 
 

        LONDON (Dow Jones)--Rolling 24-hour chart levels:
        Intraday EUR/USD: The plunge from 1.1410 put EUR bears back in control, putting support at 1.1240 at risk. The successful defence of last week's one-month high at 1.1440 also puts support at 1.1205 on high alert, which is the last line of defence protecting the June 12 intra-wave higher low at 1.1151. It would take a recovery above 1.1335 just to provide respite, and only above 1.1361 would lift the tone.
        Weekly chart EUR/USD trend: Bullish.
        Intraday USD/JPY: Surges through 123.21 on Monday, to complete a double-bottom base at 122.46/122.56 on the 60-minute chart. The pattern's measured upside objective at 123.95 is targeted, and Monday's low at 122.56 carries the hallmark of a truncated bear failure. That suggests a push beyond 123.95 should be expected, opening the June 17 high at 124.46. Weakness will attract support while above 123.03/123.15.
        Weekly chart USD/JPY trend: Bearish.
        Intraday GBP/USD: The 200-period moving average continues to cap GBP strength beneath last week's seven-month high at 1.5930. Support at 1.5740 is the immediate target, and concerted weakness would create additional downside risk to the 1.5635/50 area. Recapturing ground above 1.5835 is required offer respite, opening 1.5885.
        Weekly chart GBP/USD trend: Bullish.
        Intraday USD/CHF: Projected resistance at 0.9327 is the target for USD strength. Monday's push and session close above 0.9250 keeps last week's five-week low at 0.9151 intact, and a bull divergence is building on the daily Slow Stochastic charts. That said, a break above 0.9327 is required to open last week's high at 0.9384. The 0.9151 low would only be exposed on a break below 0.9205.
        Weekly chart USD/CHF trend: Bearish.
        Intraday EUR/GBP: Last Thursday's low at 0.7126 is braced for renewed pressure, following Monday's setback from 0.7210. However, the 0.7126 low lies near strong support at 0.7115 on the Market Profile charts, and with notable support also at 0.7099, it would require a concerted wave of EUR bear pressure to uncover the May 27 reaction low at 0.7057. Resistance at 0.7210/19 defines upside scope.
        Weekly chart EUR/GBP trend: Range.
        Intraday EUR/JPY: The impasse between the June peaks at 141.06/141.02 and the June 12 reaction low at 138.00 is set to continue. Closer in, the action of the past three days is taking the shape of a bullish continuation pattern, offering strong support while above 138.90. A break above the recent 140.63/140.67 highs would signal a test of the 141.06/141.02 highs, and a broader-term EUR bulls remain on track for 144. Only a sustained break below 138.90 would concern EUR bulls, exposing 138.60.
        Weekly chart EUR/JPY trend: Bullish.
        Intraday EUR/CHF: Near-term bulls have again come to the fore, to defend the 1.04 level on Monday. However, a recovery above 1.0480 is required to create additional upside scope towards 1.05, although the two-week falling resistance line at 1.0525 indicates limited upside scope. The 1.0404 lows would be re-exposed on a break below 1.0420, threatening 1.0350.
        Weekly chart EUR/CHF trend: Range.
        Intraday AUD/USD: Extends the setback from last Thursday's four-week high at 0.7849, to generate a downwave equality target at 0.7687. That 0.7687 objective lies close to support at 0.7685 on the Market Profile charts, and loss of 0.7685 would upgrade the bear wave, exposing last week's low at 0.7647. Failure to meet the 0.7687 objective, combined with a break above projected resistance at 0.7755, would lift the tone, although backup resistance lies at 0.7765/72.
        Weekly chart AUD/USD trend: Bearish.
        * 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

        June 23, 2015 02:36 ET (06:36 GMT)

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