At the Asian session, the Japanese GDP on quarterly basis and annual GDP index hit the wires. Japan Q1 GDP correction of 1.0% beat the expectations. Japan Q1 GDP was revised up to annualized 3.9% from 2.4%. Analysts expected 2.8%.
The cross has been trading with losses for 2 consecutive days. Today, the cross opened on a bearish note, higher at 139.60. The cross gained 2.5% during the previous week. The cross managed to trades above 20Msma 138.75. In the weekly and daily charts, the cross closed and was trading above moving averages.
Last week, we forecasted the inverse bullish head and shoulder breakout. The weekly support is found at 138.75 and 137.00. The parallel resistance at 141.22 rejected the cross at the previous week. Strong upswing looms above that level. In the daily chart, higher lows and higher highs formation has been expanding. But in the H1 chart, lower highs and lower lows formation is likely to aim at 137.60 approximately.
Intraday support is found at 139.00 and138.90. Resistance is seen at 139.75 and 139.90.
For bulls: Safe buying is available above 140.00 with targets at 140.50 and 140.65. Later, bulls are likely to aim at 141.20 as strong bullish momentum will loom there.
For bears: Safe selling is available below 138.70 with targets at 138.10 and 137.80 or at 137.20. NOTE: buying looms around 137.00.
The cross fell below the ascending trendline and closed below that. At today's Asian session, the cross rejected at the same trendline acting as resistance trendline. The divergence between the daily chart pattern and hourly chart indicates minor downfall before further significant upswing.
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