European forex blog

 

 

EUR/USD sold off sharply and trended down for most of the trading session then found support at the weekly pivot for the current low of the day.  Price attempted to rally above a long term trend line at the beginning of the Sunday session giving a false break out and resulted in the large sell off on Monday.  If price continues the sell off, watch for possible support at 1.3293 (next major fib level) then at 1.3225 (fib target and weekly pivot.)  If price rallies, watch Monday’s daily high of 1.3582 as possible resistance.

 

GBP/USD also rallied above the weekly and previous month’s high then sold off rapidly back into last week’s range.  The immediate trend is bearish but watch for possible support at 1.4630 and 1.4532* fib retracement clusters.  If price finds support and rallies, Monday’s high of 1.4950 is Monday’s high which may again be resistance.  1.5083 is the next possible resistance and the weekly fib of 1.5083.

 

USD/JPY rallied up strongly after a strong USD pushed price up then began to sell off in the late Monday session.  Price is over the 20/50 and 200 day MA’s but may need to correct itself to the short side on Tuesday or at least sell off to previous support with a chance to reenter the longer term uptrend.   IF price does sell off, 99.43-99.34 is a support cluster for strong potential support!  The next possible support is 98.70 as the next major fib retracement.  IF price rallies again, the next possible resistance are the fib targets of 101.65 and 102.68.

 

USD/CAD rallied up several hundred pips, had a slight retracement and is currently continuing to retest the day’s highs for possible resistance near the weekly pivot.  IF price continues to rally, the next potential resistance is 1.2469 and 1.2526 as the next major fib levels from last week’s sell off.  ALSO NOTE that the 20 and 50 day MA’s are very close to each other in the 1.2500 level!  IF price sells off, last month’s low and the weekly pivot of 1.2190 may offer strong support the first time tested.

 

USD/CHF also rallied up strongly after finding support at the 200 day MA and bottom of a long term consolidating wedge pattern.  If price is to continue the uptrend, the next possible resistance is 1.1431 and the monthly pivot of 1.1509.  IF price sells off again, the lows of Monday at 1.1241 could be support again and also watch for 1.1161 (the previously monthly lows).

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