The Week Ahead Aug 09 -2014 - Written by Mohammed Isah

USDCHF: Sets Up For Corrective Pullback

With USDCHF failing at the 0.9114 level and closing lower on a rejection candle formation, it faces downside risk in the new week. On the downside, support lies at the 0.9000 level with a break targeting the 0.8950 level. A cut through here will target the 0.8950 level where a violation will open the door for more weakness towards the 0.8900 level and then the 0.8842 level. Its weekly RSI is bearish and pointing lower suggesting further downside. On the upside, resistance resides at the 0.9114 level where a break will aim at the 0.9150 level. Further out, resistance resides at the 0.9200 level. A breather may occur here and turn the pair lower.
All in all, the pair remains biased to the downside on pullback risks

Daily Analysis

USDJPY: Bullish, Eyes Further Upside
USDJPY: Having ended its corrective weakness and resumed its medium term uptrend, further bullishness is expected in the days ahead. On further upside, the 90.50 level will be targeted followed by the 91.47 level and then the 92.00 level. On the downside, support lies at the 89.64 level with a cut through there aiming at the 87.86 level followed by the 87.00 level and then the 86.00 level. We expect a respite to occur here and turn back up but if this fails to occur further decline could develop towards the 84.17 level. All in all, USDJPY remains biased to the upside in the medium term.

Note:This is an excerpt from Pro Plan, our Daily 7-Currency Research Package covering EURUSD, GBPUSD, USDJPY, AUDUSD, EURJPY, EURGBP and USDCAD. Get The Full Package with Trade Alerts Including 3 FREE Bonuses Now

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