European Technical Outlook, EU Session, 05/08/13

EURUSD prices are now threading on a bullish signals

For Monday, the EURUSD is now showing bullish pattern in its candlestick sentiment from yesterday’s median levels, as prices are now edging up its momentum, due to its Bollinger Bands 21 line opening up its lines for prices to rise further. Currently, prices are now moving now at 1.3126, and might show more bullish movement for the coming hours, since prices are still near in the overbought level indicating that prices are determine to show bullish trends at the moment. As its 5-day EMA, 9-day SMA and 21-day SMS is now showing bullish trend in its pattern. As its 63-day SMA (olive line) and 84-day SMA (black line) does indicates that prices might still create more bullish movement and might continue to show more positive trading for the coming session as prices are now being supported by the Bollinger Bands 21, as its lines are still opening in.
In its economic outlook, the markets are now showing slight positive signals, as strong Chinese trade data added positive risk sentiment already bolstered by strong overnight performance by the US and European equities. While, German factory orders won against market expectations by rising a seasonally adjusted 2.2% in March, from a similar revised rate of growth recorded in the previous month. Market had expected a drop of 0.5%. However, gains were capped as French economic data disappointer markets, after industrial output in the country declined more than expected by 0.9% in March, compared to a revised 0.8% increase recorded in the previous month. Market had expected a 0.3% drop. Also, French budget deficit increased to 31.026 billion in March, from 27, 100 billion deficits recorded in February.
Thus, expect prices to show bullish trends as its RSI (14) and MACD (9, 26, 12) showing that prices is now near in the overbought level.

GBPJPY is now on a bullish pattern

For the intraday, the GBPJPY is now showing moderate bullish signals in its hourly charts, as its candlestick sentiment is showing more bullish movement in its trading. In addition, the Bollinger bands 21 is now hindering prices from rising, however, as prices are now moving at 153.42 and might break its key resistance line of 154.09 however, the Bollinger Bands 21 lines are closing in for the coming hours. As its 84-day SMA and 63-day SMA are indicating that prices are still showing moderate sluggish signals at the moment, as its 84-day SMA (black line) is above its 63-day SMA (olive line) suggesting that a slight bullish signal is further expected. In addition prices might find its resistance at 154.09 as prices is now moving at 153.42. While, it’s RSI (14) is showing that prices are now in the median levels confirming the readings of the 84-day and 63-day SMA and might show more rise.

EURJPY is now heading into moderate bullish signals

For the intraday bias, the EURJPY is now showing moderate bullish movement in its hourly chart, as prices are moving at 129.93, and might rise on such range due to the Bollinger bands 21 now opening in its lines for prices to rise in its ranges further in its movement. This moderate bullish trend can be attributed to the three brother bullish pattern being concocted by 5-day EMA, 9-day SMA and 21-day SMA, wherein prices is now showing moderate bullish pattern in its price chart, however, its Bollinger bands (21) is now trying to suppress the bullish rise, even if its lines are opening in. Its 5-day EMA, 9-day SMA and 21-day SMA are all now supporting to form a moderate bullish pattern at the moment. While, its RSI (14) and MACD (9, 12, 26) are showing that prices might show bullish movement which might continue.

EURCHF is still showing bullish movement

For the intraday bias, the EURCHF is still showing strong bullish signal in its price action, as prices are now moving into a strong bullish mode in its hourly chart. As prices are currently moving at 1.2339 and now moving into its overbought level indicating that it might reverse for the coming hours, since the 84-day SMA is acting as a hard ceiling for prices, after which it might show bullish movement under its price chart, though the bullish trend being concocted is confirmed and well-supported by its moving averages expect it to rise for the coming hours. Its Bollinger Bands (21) is showing that its upper and lower channels are opening in which indicates the bullish rise might be short live as it might reverse from its current levels for the coming hours since prices are now in the overbought level.