Candlestick Summary

EUR/USD

Strategy: Pending Short

The bottom line for EURUSD is virtually unchanged from what we identified last week, with prices seemingly on track to set a double top 1.5065 as the RSI oscillator shows clear negative divergence with the highs in price action. Long-term positioning is also supportive, with weekly charts showing a formidable Bearish Engulfing pattern. We will look for confirmation of a trend change on a daily close below support at a rising trend line established from the lows in March (now at 1.4855) to establish short.




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USD/JPY

Strategy: Flat

Last week, we noted that the presence of a large Bearish Engulfing candlestick pattern suggested downward USDJPY momentum was ready to resume. Indeed, prices have slid lower and now face a formidable support in the 87.09-88.23 area. We will continued to observe from the sidelines for now as prices resolve this pivotal juncture. A break lower would open the door for rapid bearish acceleration below the 80.00 mark.




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To reach Ilya regarding this article or subscribe to his email distribution list, please contact him at ispivak@dailyfx.com

GBP/USD

Strategy: Short at 1.6648, Targeting 1.6260

GBPUSD has put in an Evening Doji Star bearish reversal candlestick formation and prices have broken below support at a rising trend line established from October’s swing low. Pronounced negative divergence on the RSI oscillator bolsters the case for a downside scenario. We will enter short from here, initially targeting 1.6260. A stop-loss will be activated on a daily close above 1.6882, the 11/16 wick high.




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To reach Ilya regarding this article or subscribe to his email distribution list, please contact him at ispivak@dailyfx.com

USD/CAD

Strategy: Long at 1.0558, Targeting 1.0875

Weekly Profit / Loss: +108 pips

Last week, we entered long USDCAD as prices put in a formidable Bullish Engulfing pattern on a re-test of broken resistance at the top of a falling channel that had guided prices lower since the swing high in March. The pair has indeed moved higher and we will remain long, initially targeting the 11/02 wick high at 1.0875. A stop-loss will be activated on a daily close below 1.0415.




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To reach Ilya regarding this article or subscribe to his email distribution list, please contact him at ispivak@dailyfx.com

AUD/USD

Strategy: Pending Short

AUDUSD has moved lower and is now set to test key support at the bottom of a rising channel that has guided the pair higher since July. Negative divergence on the RSI oscillator points to a bearish bias but we will wait for a confirmed daily close below the channel’s lower boundary (now at 0.9113) to enter short.




For streaming currency market news and analysis, please visit http://forexstream.dailyfx.com

To reach Ilya regarding this article or subscribe to his email distribution list, please contact him at ispivak@dailyfx.com

NZD/USD

Strategy: Pending Short

NZDUSD has bounced sharply lower after a re-test of previously broken support at the lower boundary of a rising channel that had guided prices higher since the lows in March. However, entering short at these levels does not look prudent with the presence of horizontal support at 0.7144 skewing risk/reward considerations. We will remain on the sidelines for now, looking either for a bounce from or a break below 0.7144 to look for selling opportunities.




For streaming currency market news and analysis, please visit http://forexstream.dailyfx.com

To reach Ilya regarding this article or subscribe to his email distribution list, please contact him at ispivak@dailyfx.com