The EURUSD was volatile yesterday but overall still able to maintain its bullish intraday bias so far after found support around 1.4070. On hourly chart below we can see price is moving inside a minor bullish channel suggests a bullish outlook since the rejection to move consistently below 1.4000. However, note that the medium bearish outlook since the fall from 1.4939 remains intact and the current bullish intraday bias is just a corrective move. Price is now retesting the 23.6% Fibonacci retracement of 1.4939 – 1.3968 around 1.4200. A clear break above that area could trigger further bullish pullback testing last week’s high at 1.4344 which is also the 38.2% Fibonacci retracement. Immediate support at 1.4120. A clear break below that area could lead us to neutral zone in nearest term retesting 1.4070. Only a clear break below the minor bullish channel and 1.4000 could end the current bullish correction and continue the bearish scenario testing 1.3860 – 1.3750.
The USDCHF continued its bearish momentum yesterday, bottomed at 0.8643 and hit 0.8616 earlier today in Asian session. The bias remains bearish in nearest term testing 0.8555. The strong bearish momentum in the last three days after break below the range area formed three bearish candle stick on daily chart so watch out for potential upside correction. Note that direction is not enough. We need to have a good risk – reward ratio. Aggressive intraday traders may short around 0.8710 while the best risk – reward ratio remains to short around 0.8779.
The EURJPY attempted to push higher yesterday, slipped above 116.00 but whipsawed to the downside and hit 114.67 earlier today in Asian session on broad Yen strength. The bias is bearish in nearest term testing 114.00 but I think the best place for short position remains around 116.00 due to a good risk – reward ratio. On h4 chart below we can see price still moves inside a bullish channel after the failure to make a clear break below 114.00 so aggressive intraday traders can also long around 114.00 with the same reason, a good risk – reward ratio. Price has been moving in a sideways mode in the last three weeks between 116.00 – 114.00 and need a clear break on either side to see clearer direction.