This currency pair entered into very erratic uptrend with deep pullbacks since the beginning of July 2013. Yeasterday it bounced from highs of the wedge and put another lower high. It is something to take notice because sellers show some strength. Now we have few points of reference: previous low of the day at 1.37974 and support with 50 MA at 1.37851. Break down below those levels could lead price to another buyable area on macro trend line. But if it manages to bounce from yesterday's low and regain short term moving averages then we can see new highs soon.
Yeasterday we saw Red Dog Reversal (failure below previous low and close near highs). Bounced from area that I mentioned in yesterday's briefing note. We can see continuation move for another day and a half and then measure composure. I expect to see some upside follow through above previous high of the day at 0.92816. Support at 0.92277 then we have 50 MA at 0.92000.
This social network company released it's earnings report and stocks were sold off for the next three days right to support area from where it bounced yesterday's with a nice close near highs. If it will go through yesterday's high at 58.30 that could keep its momentum intact for a potential move to resistance zone from 59.00 to 60.27. If bears want to keep control on price action they should not give up that area, else our next major resistance is at 63.61 from where it already bounced three times.
Despite it was more bearish after it broke down it's accelerated uptrend at 68 it is still above 200MA – nothing to worry for macro investors. Our support zone is at 54.75-55.39 then we have 200MA at 52.78. We can also identify bigger pattern here so called cup and handle pattern that could resolve to a downside with target at $40 per share. But until that we should navigate this price action.