Daily Technical Analysis 23 Jan 2017



Today's Risk Events

Tuesday 24 Jan

8:00 – 9:30 am EUR PMIs
French Flash Manufacturing PMI Followed by French Flash Services PMI, German Flash Manufacturing PMI, German Flash Services PMI, Flash Manufacturing PMI, Flash Services PMI
All PMIs are released between 8 – 9:30 am. They are expected to come out approximately in line with previous figures. There should be no surprises unless most of them will print a significant deviation. Anything less than 50 would suggest contraction and figures above 57 would move EUR to the upside. Overall, I expect low impact.

9:30am GBP EU Membership Court Ruling
Court ruling is expected to stay intact. This can prove to be “hot” news for GBP so high volatility might occur . Look out for comments afterwards.

EURUSD

Intraday

Daily

Weekly

Weekly Bias: BULLISH
Daily Momentum: BULLISH, GETTING BEARISH
Intraday: BULLISH TOWARD 1.0850
Signals: No

Notes: As expected EURUSD kept pressing up. The pair is currently trading at 1.0760. I expect some resistance around 1.0830 area. As momentum is getting overbought, I will be looking for a bearish reversal pattern above 1.0830 in the next few days.

GBPUSD

Intraday

Daily

Weekly

Weekly Bias: BULLISH
Daily Momentum: BULLISH
Intraday: BULLISH
Signals: NO

Notes: Cable also kept pushing up. The pair is now trading 3 month high and it looks very strong indeed. I expect this to continue towards 1.27 resistance. Take caution around Brexit ruling this week. If GBPUSD drops on Wednesday, 1.2380 seems like a good place to buy.

USDJPY

Intraday

Daily

Weekly

Weekly Bias: BULLISH
Daily Momentum: BEARISH
Intraday: POTENTIAL DOUBLE BOTTOM FORMED
Signals: NO

Notes: It looks like there is more bears in the market. USDJPY respected the resistance at 115 area and dropped like a stone. It is trading at a perfect double bottom at 112.70. The price action looks like it has a potential to drop further even towards 110. If this is the case, I expect the pair to range bound for a while, bottom out and form a reversal pattern. Lets see how it will develop in the next few sessions.

AUDUSD

Intraday

Daily

Weekly

Weekly Bias: BULLISH
Daily Momentum: BEARISH
Intraday: MOMENTUM IS GETTING OVERBOUGHT. LOOK OUT FOR BEARISH REVERSAL
Signals: NO

Notes: Aussie kept climbing supported by higher commodity prices and speculative bullish positions. The momentum is getting overbought but the pair has a potential to reach 0.7750. I will be looking for a double top and lower low from now on.