EUR/USD retreats from 1.3655

The rally of the EUR/USD was capped by the 1.3650 area, after climbing 180 pips from 1.3480. The pair is now retreating from the highs, attempting to hold above 1.3600, still posting a daily gain of more than 70 pips.

From a technical perspective, the Talking-Forex Analysis Team see supports at 1.3530, 1.3479 and then at the 21-day lower Bollinger level at 1.3263. “On the other hand, resistance levels are seen at the 10DMA line at 1.3649 and then at 1.3799.”

An improvement in market sentiment and hopes for more action regarding the European debt crisis triggered risk appetite on markets that weakened the Dollar versus the Euro.

From Monday’s low at 1.3360 the Euro rose more than 250 pips. Despite recent price action, the pair is still on its way to the worst monthly performance since November 2010.

EUR/CHF targeting 1.2346 ahead of 1.2469 − UBS

 

The EUR/CHF bias has shifted to bullish after breaking above 1.2191 yesterday, says Chris Walker, analyst at UBS Bank, who sees the pair targeting 1.2346, and above here, 1.2469, which immediate support at 1.2051.

EUR/USD capped at 1.3700, dips to fresh lows

 

Euro reversal from 1.3935 high last week has extended to 13645 in Asia, with the pair weighed by renewed concerns about Greece, where the pair found support to bounce up at European opening, although, capped at 1.3700, the pair has turned lower again, dipping to fresh lows at 1.3630.

On the downside, the pair might find support at 1.3590 (Sept 14 low) and 1.3555 (Sept 13 low) before facing 1.34954 (Sept 12 low). On the upside, immediate resistance lies at 1.3700/05 (day highs), and above here, 1.3730/50 (broken trendline support) and 1.3795 (Gap from Sept 16 closing price).

On the long-term, the downtrend from 1.3940 remains active, heading to 1.3555 and 1.3240 says Stoyan Mihaylov, analyst at Deltastock: "The downtrend from 1.3940 is still intact, targeting 1.3555, en route to1.3240. Initial resistance is projected at 1.3750 and crucial on the upside is 1.3800."

USD/JPY downtrend expected to resume − Mizuho

Triangle consolidation in May and June resulted in another decline, and the pair has formed another triangle in August according to Nicole Elliot, technical analyst at Mizuho Corporate Bank, with all aspects of the weekly Ichimocu cloud suggesting another step lower.

Technical indicators suggest a resumption of the longer-term downtrend, says Elliott: "Having set a new record low at 75.94 on the 19th, and pushing into the apex of this very irregular little pattern, we shall be expecting the downtrend to resume as all aspects of this weekly Ichimoku ‘cloud’ chart suggest it should."

Downside targets below 75.95, according to Elliott, would be at 74.50 and 73.50: "Measured targets lie at 74.50 and 73.50. Obviously prices can also spiral out of control, but at the moment this looks unlikely."