Consolidation continues on the EUR/USD

On the daily chart of the EUR/USD se can see that the pair has stayed in a range between the 1.1000 level and the 1.1100. The size of the real bodies of the last few candles is relatively small, which is an indication that the pair has been very undecided and after the formation that looks like a symmetrical triangle, the price may break out in any direction. To the upside, the next important resistance is the zone around the 200 day exponential moving average, blue line, around the 1.1177 level, but we also have the 1.1200 level around that zone, which could also contribute for that zone to become a good resistance. To the downside, the only important support at the moment is the 1.0900 area.

The EUR/JPY stays at a good support zone

The EUR/JPY has found a good support zone around the 111.00 level, where it has been consolidating for a while as shown on the daily chart. A breakdown of the 111.00 level could take the price to the low at the 109.37, which could act initially as support, but it may break it also to the downside. Below those level, its next support could be the 109.00 level. The 55 day exponential moving average, purple line, may be used as a trend indicator. The angle of inclination of the 55 day EMA is showing us that the bearish trend is still in place and it is gaining strength. To the upside, the high of the pullback at the 114.82 level may act as resistance, along with the 116.00 level.

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Bullish flag on the USD/CHF

On the daily chart of the USD/CHF we can see that the price has formed what it appears to be a bullish flag formation, which usually acts as a continuation pattern. The 200 day exponential moving average, blue line, is very horizontal, which indicates that we should be suspicious of the visits that the price makes to that moving average, due to the fact that sometimes the price breaks it, but other times it bounces from it. The price has really been consolidating between the 0.9700 as support and the 0.9800 as resistance. If the price breaks to the upside, then the 0.9900 level may act as resistance. Since the price could also break to the downside, even though there is a higher probability of a bullish breakout, it may go to the 0.9600 level, which could act as support.

New low for the GBP/JPY

The GBP/JPY has been falling rapidly during the last few days and it has reached the 131.00 round number level where it stalls at the moment. The bearish momentum may continue, but we could also see a bullish bounce from the current levels, due to the fact that the stochastics are in the over-sold zone and prone for a correction. Since the stochastics cannot fall below 0%, they stay consolidating in the over-sold zone while the price may continue falling. To the upside we do not see any relevant resistances all the way to the 145.44 level.

Consolidation continues on oil

WTI crude oil, which trades in the US continues in a well-defined consolidation, which has been tightening its range. On the daily chart we can see how the 50.00 level has been acting as a good resistance. To the downside, it is possible for the 200 day exponential moving average to act as resistance in case the price drops to that zone, around the 44.39 level. Below that moving average the next support could be the 40.00 level. On the stochastics chart we can see that the lines have been converging, creating what it appears to be a symmetrical triangle. The formation on the stochastics is an indication that the price may come out in any direction.

Sideways movement on oil

The consolidation continues on WTI oil, as shown on the daily chart of the august contract. The sideways movement has formed just below the 50.00 level and the range seems to be tightening. The longer the consolidation lasts, the stronger the price may move in case of a breakout to the upside or to the downside. Above the 50.00 level we have seen that its next resistance is the 60.00 level. To the downside, the 200 day exponential moving average, around the 44.00 level could act as support. The stochastics are also consolidating without taking a clear direction.