USD Under Bear Pressure

 
   By Francis Bray, CFTe MSTA 
   A DOW JONES NEWSWIRES COLUMN 
 

        LONDON (Dow Jones)--Rolling 24-hour chart levels:
        Intraday EUR/USD: Rejects Monday's marginal twelve-week low at 1.0808, to bring the 1.10 level back within striking distance. Tuesday's high at 1.0969 is under pressure, and a push higher would open the 1.0992/1.1006 resistance area on the weekly Market Profile charts. EUR bulls would be given a new lease of life on a sustained break above 1.1006, offering additional scope to projected resistance at 1.1108. Weakness will attract support while above 1.0879, and the 1.0808 low is adequately protected.
        Weekly chart EUR/USD trend: Bearish.
        Intraday USD/JPY: Resistance just beneath 124.50 has refused to budge, prompting a corrective move lower. Tuesday's bearish outside day peak at 124.48 marks the 76.4% Fibonacci retracement level of the broader 125.86 to 120.41 decline, and the congestive support area between 123.36 and 123.45 on the weekly Market Profile chart is the next target area. However, USD bulls would only be concerned on a break below 123.36, exposing 122.92 and 122.71. A push into new session highs above 123.89 is required to open 124.07, but the 124.84 peak has additional protection at 124.29.
        Weekly chart USD/JPY trend: Bullish.
        Intraday GBP/USD: Tuesday's downward breach of 1.5538 turns last Friday's high at 1.5674 into a pending bull failure. This keeps the focus on Tuesday's low at 1.5530, and a push lower would expose 1.5490 and the July 14 higher low at 1.5452. The 1.5630 resistance area would have to be reclaimed in order to re-open the 1.5674 high.
        Weekly chart GBP/USD trend: Range.
        Intraday USD/CHF: The recovery from Tuesday's low at 0.9560 is struggling to make headway, indicating a push lower is on the cards. The rejection of a twelve-week high at 0.9649 suggests the 0.95 support area is in line for a test, and there is scope for 0.9463 without damaging the wave structure of the five-week bull wave. Resistance at 0.9595 and 0.9625/35 guards the 0.9649 peak.
        Weekly chart USD/CHF trend: Bullish.
        Intraday EUR/GBP: Tuesday's push and session close above 0.70 give EUR bulls licence to stretch the recovery from 0.6937 further. Last week's seven-and-a-half year low at 0.6937 has become isolated for now, and a break above 0.7045 would open 0.7060 and the 0.7104 resistance area on the Market Profile charts. Support at 0.6994 and 0.6955/65 offer defence for the 0.6937 low.
        Weekly chart EUR/GBP trend: Bearish.
        Intraday EUR/JPY: Monday's six-week low at 134.35 was strengthened somewhat on Tuesday's surge to 135.76, and EUR bulls have their eye on the July 15 intra-wave lower high at 136.36. The 134.35 low is a pending bear failure, and a break above 135.76 would open the 136.36 intra-wave lower high, while threatening to signal further scope to the July 13 peak at 137.80. Weakness will attract strong support while above 134.80, helping to guard the 134.35 low.
        Weekly chart EUR/JPY trend: Bearish.
        Intraday EUR/CHF: The 1.05 level is back in focus, following this week's EUR strength. The successful defence of the 1.04 support area brings the July 10 reaction high at 1.0525 back into the picture, where a seven-week falling resistance line lies. The Market Profile charts show support at 1.0445 and 1.0435 protect the 1.04 area.
        Weekly chart EUR/CHF trend: Range.
        Intraday AUD/USD: The corrective recovery from Friday's six-year low at 0.7328 targets the 0.75 resistance area. The rally will be considered corrective because the broader bear wave from the June 18 lower high at 0.7849 remains structurally intact for its downwave equality target at 0.7306, and only above 0.7499 would concern AUD bears. It would take a break below 0.7373 and 0.7350 to drag the 0.7328 low back into the immediate picture.
        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

        July 22, 2015 02:55 ET (06:55 GMT)

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