Daily review on 27th
NEWS: GBP 5:30 AM est Current Account
USD 8:30 AM est Personal Spending / Personal Income
9:55 AM est Revised UoM Consumer Sentiment
EUR/USD rallied again up to the top of a long range consolidating channel and found resistance for the highs of the day then sold back off into the range. IF price remains in the channel on Friday watch for possible support at approx. 1.3420 as the bottom of the channel and near the lows of the week. The next possible support is the next 50% retracement of 1.3332. If price rallies, 1.3651 is near the highs of Wednesday and Thursday and may again offer resistance. The next possible resistance is 1.3738 as the highs of last weeek and current monthly high.
GBP/USD sold off through support and made new weekly lows as price is also in a slight downward channel and appears to have a short bias correction after the recent two week rally. Price is still over the 20 and 50 day MA but if price drops, the next possible support is 1.4350 as the next major 38% retracement and 1.4300 (weekly pivot and whole number / fib target.) If price reverses and rallies, watch for possible resistance at 1.4600 and 1.4644 as the current fib retracement levels from the weekly high/low. IF PRICE makes a new LOWER LOW then 1.4425, then disregard the fib retracement levels and recalculate them with the new low!
USD/JPY found support at the 20 day MA and rallied to make new weekly highs and is currently testing the current monthly highs for resistance. If price continues to rally, the next possible resistance is 99.76 and 100.50* (fib target and fib target cluster.) IF price finds resistnace at the monthly highs and sells off on Friday, 96.92 is Wednesday’s low and 96.21 is near the CURRENT 50% fib retracement and weekly pivot for the next potential support!
USD/CHF has now bounced from the 200 day MA for multiple days in a row and bounced strongly each time. Price has been in a sideways consolidating channel after the huge sell off last week. IF price sells off again, the 200 day MA near the 1.1180 is also a monthly pivot and may again offer support but be cautious for price to possibly break the support due to the amount of times this zone has beentested previously. If price rallies, 1.1400 is the previous monthly low and was strong support and nowshould provide some sort of resistance if the USD/CHF manages to test this level on Friday.
USD/CAD has also been in a sideways channel for the entire week and been generally non volatile so watch for a chance to buy the breakout of 1.2329 and possible sell the breakdown of 1.2275 as these are the close to the top and bottom of the channel and may provide an opportunity to catch the breakout moves. Thursday should also close as an NR4 inside day which usually precedes a large breakout type day with fairly strong trends so keep an eye out!
Happy trading
No comments yet.