Daily Technical Analysis is provided by Jason Sen of Day Trade Ideas, who has been day trading since the late 1980’s. Jason has been a contributor of Traders Summit since the beginning. He primarily focuses on providing technical analysis of the financial markets, including stock chart patterns, Forex and Metals setups, and other useful technical analysis.
AUDUSD a little lower as expected to 6696 but unexpectedly reversed to close unchanged leaving a minor bullish candle in oversold conditions. Holding above 6745/35 signals further gains today targeting 6760 & first resistance at 6770/80. A high for the day is possible in the bear trend. Shorts need stops above 6800.
Failure to hold above 6730 risks a retest of 6700/6695. A break lower can target 6670/60. NZDUSD made a low for the day 11 pips below 38.2% support at 6150/40 & the pair is recovering towards first resistance at 6190/6200. A high for the day possible here but shorts need stops above 6215. A break higher can target 6145/55.
Shorts at 6190/6200 can target 6150/40 for profit taking. Longs need stops below 6125. (Let’s see if we establish a new range from 6150/40 up to 6190/6200). Be ready to sell a break below 6125 to target 6100/6090, probably as far as 6040/30 for profit taking on shorts.
CADJPY took a long time to finally reach my target & Fibonacci resistance at 100.55/65. A Doji yesterday suggests we will struggle here in overbought conditions. Shorts need stops above 100.80. A break higher sees 100.65/55 act as support to target 101.25/35.
Shorts at 100.55/65 can target 100.00/9990, perhaps as far as a buying opportunity at 9950/40. Longs need stops below 9920.
USDJPY longs at buying opportunity at 134.10/133.90 hit my target of 135.45/55 & 135.80/90 before reaching strong resistance at 136.65/85. What a great run for our longs!!
Shorts need stops above 137.10. A break higher is a buy signal for this week targeting 138.00/20.
Shorts at 136.65/85 can target 136.00, perhaps as far as first support at 135.50/30 for profit taking. Longs need stops below 135.15. NZDJPY remains in a tight sideways range – only useful for scalpers. Resistance again at 8450/80. A break above 8510 therefore should be a buy signal.
Shorts at 8450/80 can target 8400/8390 & 8370/60, perhaps we can fall as far as 8310/8290 eventually.
EURUSD unexpectedly bounced from 1.0534 & beat strong resistance at 1.0575/85. I think today’s resistance is at 1.0590/1.0610. Shorts need stops above 1.0630. A break higher can target 1.0650/60, perhaps as far as 1.0675/85.
Shorts at 1.0590/1.0610 can target 1.0580/75 & 1.0545/35. If we continue lower look for 1.0510/00, perhaps as far as strong support at 1.0470/50. Longs need stops below 1.0430.
USDCAD beat 4 month trend line resistance at 1.3570/90 so we must obviously hold above here this week to maintain a buy signal targeting 1.3700.
Longs at 1.3590/70 stop below 1.3550. This was nasty yesterday because we spiked down to 1.3533 then immediately recovered. USDCAD remains difficult to read. We have been in a bull trend for 2 weeks but with deep pullbacks making it tough to hold a long position.
(Which is why I am not adding USDCAD trades to the sheet).
Dollar Index higher last week as predicted on Monday. By Friday we hit my first target of for the 105.15 & should be headed for 105.80 this week, perhaps as far as 106.10/30.
First support at 1.0505/104.95 broke but we saw a low for the day at strong support at 104.75/60. However a break lower meets strong support at 104.30/20. Longs need stops below 104.00.
EURCAD I am going to wait to see if a head & shoulders forms.
A high for the week exactly at the 50 day moving average at 1.4440/50 helps this pattern to develop. A break below support at 1.4230/20 this week will be the sell signal targeting 1.4150 & 1.3980.
GBPUSD bounce from strong support at 1.1960/40 has reached 1.2068. I expect strong resistance at 1.2090/1.2110. Shorts need stops above 1.2130. Shorts can target 1.2040/20, perhaps as far as strong support at 1.1960/40. Longs need stops below 1.1910. A break below 1.1910 is a sell signal for this week targeting 1.1865/55, perhaps as far as 1.1810/00.
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Jason Sen, Director