GAFNN.com Blog

Over weekly basis, the index confirmed the breach of focal resistance areas at 1216.50 then 1233.20 with consecutive weekly closings, and by that validating the continuation of the short and medium term bullishness. The importance of the breached areas is resembled by the following factors:

The mixed trading evident on the pair with a slight upside bias in an attempt to touch the retest level at 1.3080. Momentum indicators are negative that will maintain the bearish pressure, while we remain neutral as we observe the pair’s movement today, especially around critical levels between resistance 1.3080 and support 1.2920.

EURO breached the descending channel’s resistance level to currently trade in the wedge between the retest of this broken resistance –  turned into support at 1.2930 -, and retest the previously breached support level at 1.3080.

EURUSD touched the awaited resistance level around 1.2955, accompanied by clear negativity appearing through stochastic; therefore, our suggested morning scenario will be activated, as long as we keep in mind the importance of building a base below the mentioned level in order to resume expectations.

The daily chart shows how gas started the downside correction after the rally from the recorded trough at 2.334 to the top around 6.093. Take a look at the image below:

The Euro touched the descending channel’s resistance level and stabilized below it. Stochastic entered overbought areas and thus supports yesterday’s suggested scenario; therefore, we expect a bearish intraday direction that starts targets at 1.2800.

Crude is showing a slight bearish bias since this morning, while fluctuations continue with touching the previously breached falling wedge’s resistance level that has currently turned into support and descended to 88.60.

EURUSD is still trading below the descending channel’s resistance level with ongoing positive momentum over the four-hour basis below.

Over weekly basis, copper neared the resistance for the general ascending channel which started from the recorded trough at 125.35 within the main channel.

The index continues trading within the channels over short and medium term basis as the ascending channel has been organizing the upside move from the recorded trough at 3441 till today; meanwhile, a minor ascending channel organized the short term bullishness since reaching the main channel’s support at 4755 end of June.