USD/CHF hit a long term support
The currency pair decreased after the yesterday’s massive drop, but this bounce back could be only temporary if the if the dollar index will slide further in the upcoming period. Price has touched the 0.9440 long term support, technically we may have a rebound on the short term, but the rate remains under massive selling pressure.
Right now is better to stay away from this pair because we don’t have any trading opportunity, only an accumulation movement will announce a potential upside movement. Continues to move sideways on the long term, the 0.9440 represents the sideways movement downside line.
Price increased as the USDX increased as well a little today, unfortunately the US data continues to come in mixed and fails to boost the greenback. The US existing Home Sales dropped from 5.62M to 5.52M in June, the indicator has come much below the 5.59M estimate, while the Flash Services PMI remains on hold at 54.2 points for the second month in July. The Flash Manufacturing PMI increased from 52.0 to 53.2 points, beating the 52.3 estimate.
Could rebound if will fail to close on the 0.9440 major static support, you can see that we had a false breakdown below this level in the yesterday’s session.
I hard to say that we’ll have another leg higher from this level, that’s why we have to stay away right now till we’ll have a fresh trading signal.
Brent Oil upside still uncertain
The Brent Oil rebounded today and tries to stay in the buyer’s territory, is located above the 48.50 level, but he needs a bullish spark to be able to resume the short term throwback.
Price rallied after the false breakdown below the upper median line (UML) of the major descending pitchfork and now is approaching the 50% retracement level. Only a valid breakout above this level will bring us a good buying opportunity.
Resistance can be found also at the 50.10 previous high and higher at the sliding line (SL), we’ll have a broader rebound if will escape from the descending channel between the SL and the 50% Fibonacci line.
AUD/USD too exhausted to stay higher?
Price decreased in the second part of the day and erased some of the morning impressive gains, the bulls look exhausted on the short term, so a minor retreat is favored.
Price could drop further in the upcoming day after the failure to reach and retest the first warning line (wl1) of the ascending pitchfork and the 0.7989 static resistance. Is moving sideways between the 0.7989 and the 0.7874 level, we’ll have a clear direction after a breakout from this range.
A valid breakdown below the upper median line (uml) of the minor ascending pitchfork will open the door for more declines in the upcoming weeks.
By Olimpiu Tuns
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The post Daily Market Report – USD/CHF bounce or break? July 25, 2016 appeared first on mexgroupblog.