European forex blog

EUR/USD sold off early Sunday night below the 50 day MA and made new monthly and new 10 day lows.  If price continues to sell off for Monday, watch for a bearish break out trending day as the 1.3000 level is key support.  The next possible support will be light support at 1.2880 and the fib target and whole number at 1.2800.  IF price gives a false breakout to the short side and rallies, the monthly and weekly pivots in the 1.3150 zone, then the next major fib retracement and whole number at 1.3200 are your potential resistance.

GBP/USD also sold off hard early Sunday night and should at least test the 20 day MA for support if price continues to drop.  1.4700 is the next fib cluster and 1.4588 is the next major fib retracement and may be strong support if tested on Monday.  IF price finds support and ultimately rallies, draw fibs from the lowest low of Sunday night/Monday and use these levels from last week’s high for your major resistance points.  Price is currently making new daily/weekly lowers lows at the time of publishing.

USD/JPY was beginning to sell off early Sunday night as even with the strong USD, the JPY was the dominant currency and resulted in the sell off and the test of the long range trend line and the 200 day MA.  Watch for possible support at 98.15 (last week’s low) and the next monthly pivot at 97.35. IF price rallies, 99.75 is a major fib retracement and the high of last Thursday which may be resistance

the first time this level is tested again on Monday or early this week.

USD/CAD has rallied up to test the previous strong support now as potential resistance.  1.2175 is the beginning of the previous zone which is being tested currently.  The next possible resistance is 1.2263 and 1.2350 as the next major fib levels from last week’s low and last month’s high.  IF pricefinds resistance and sells off, 1.2000 is the beginning of the current monthly low which may again be support.

USD/CHF had a huge rally on Friday and made new monthly and 10 day highs as price is now over the 20 and 50 day MA’s.  IF the momentum continues and price continues to rally, the next light resistance is the fib target 1.1770 and the fib target and monthly pivot at 1.1860.*  If price sells off the current fib retracement levels from last week’s high/low are currently 1.1559 and 1.1511*, however, IF PRICE makes a new daily high ABOVE 1.1700 then redraw these fibs and use thenew levels for your support points for Monday.

Happy trading

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