2/6/2015 8:30 EST update
EUR/USD 4-hour: Broke above the Ichimoku’s cloud.
Invest Diva positioning: Long positions above 1.1384 with targets at 1.1548 and 1.1784 in extension.
Technical reasons why: The pair is rebounding before reaching our first bullish target at 1.1548 while it’s still above the Ichimoku’s cloud and the pivot level at 1.1385. The pair would be expected to drop to at least this level then move up again. The RSI is above the neutrality area.
Alternative Scenario: Below 1.1384 look for further downside towards 1.1150 and 1.0995.
Where I’m setting my stops and limits:
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
| 1.4954 | 1.5150 | 1.5466 |
| 1.4846 | 1.5271 |
GBP/USD 4-hour: Broke down 38% Fibonacci level.
Invest Diva positioning: Long positions above 1.5271 with targets at 1.5368 and 1.5466 in extension.
Technical reasons why: The pair reached and surpassed our bullish target at the 38% Fibonacci level at 1.5271 above the Ichimoku’s cloud. The RSI is above the neutrality area.
Alternative Scenario: Below 1.5271 look for further downside towards 1.5150 and 1.5053.
Where I’m setting my stops and limits:
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
| 1.5150 | 1.5271 | 1.5466 |
| 1.5053 | 1.5368 |
NZD/USD 4-hour: Moving upwards within the Ichimoku’s cloud.
Invest Diva positioning: Long positions above 0.7368 with targets at 0.7460 and 0.7608 in extension.
Technical reasons why: The pair is moving upwards within the Ichimoku’s cloud. A break above the Ichimoku’s cloud and the 38% Fibonacci level would signal further up moves. The RSI is above the neutrality area.
Alternative Scenario: Below 0.7368 look for further downside towards 0.7220 and 0.7007.
Where I’m setting my stops and limits:
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
| 0.7220 | 0.7361 | 0.7608 |
| 0.7007 | 0.7460 |
USD/JPY 4-hour: Continues to test the key support level.
Invest Diva positioning: Short positions below 117.29 with targets at 113.66 and 116.05 in extension.
Technical reasons why: The pair continues to test and be strongly blocked by the key support level at 117.29 below the Ichimoku’s cloud. A break below this level would signal further down moves. The RSI is slightly below the neutrality area.
Alternative Scenario: Above 118.79 look for further upside towards 120.62 and 121.83.
Where I’m setting my stops and limits:
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
| 116.05 | 118.79 | 121.83 |
| 113.66 | 117.29 | 120.63 |
