Bad US Data

Bad US Data

US durable goods orders fell 18.2% in August while excluding transportation, orders rose 0.7, mainly in line with expectations. Initial jobless claims rose to 293K in the latest week following 280K registered the previous one and below the 300K expected.

All this has led to weak US dollar and Ms. USA is dancing lower against her major counterparts namely the British Pound, euro and Japanese Yen.

Intraday Forex Technical Levels

EUR/USD 4-hour: Downtrend prevails.

Invest Diva Likes: Short positions below 1.2717 with targets at 1.2664 and 1.2565 in extension.

If Pair Goes Nuts: Above 1.2717 look for further upside towards 1.2771 and 1.2810.

What’s up on the Forex Dance Floor: The pair continues on an overall downtrend below the Ichimoku’s cloud with the RSI in oversold zone. Also one of the largest international brokers says that 64% of traders are long the pair. Using this market sentiment index as a contrarian signal, the combination of the technicals and current sentiment gives a further bearish bias.

Supports and Resistances
1.2810

1.2771

1.2717 Pivot Point

1.2664

1.2565

GBP/USD 4-hour: Rebounding.

Invest Diva Likes: Long positions above 1.6279 with targets at 1.6398 and 1.6485.

If Pair Goes Nuts: Below 1.6279 look for further downside towards 1.6171 and 1.6060?in extension.

What’s up on the Forex Dance Floor: The pair moved up after reaching the bottom at 1.6060 and is currently moving up after to failing to break below the 1.6279 pivot level. The pair entered the Ichimoku’s cloud and is rebounding from its lower boundary. A break above the Ichimoku’s cloud could open doors for more gains.

Supports and Resistances
1.6485

1.6398

1.6179 Pivot Point

1.6171

1.6060

USD/JPY 4-hour: Consolidating.

Invest Diva Likes: Long positions above 109.17 with targets at 110 and 110.52 in extension.

If Pair Goes Nuts: Below 109.17 look for further downside towards 108.71 and 108.

What’s up on the Forex Dance Floor: The pair is on an overall uptrend above the Ichimoku’s cloud but currently is consolidating between the levels at 108.71 and 109.17.
The pair is now teasing the resistance level with the RSI above the neutrality area.

Supports and Resistances
110.52

110

109.17 Pivot point

108.71

107.31