Review on Wensday 14th of April

NEWS: USD 8:30 AM est Core Retail Sales / PPI

10:30 AM est FOMC Member Evans Speaks

1:30 PM est Fed Chairman Bernanke Speaks

EUR/USD reversed from last weeks strong sell off and rallied to the 20 day MA and 62% retracement of last week’s sell off and found resistance for the ultimate high of the day. IF price sells off from this level, use the fib retracement zones beginning at the fib levels from last week’s low and this week’s high as your potential support. 1.3277, 1.3241 and 1.3205 are the beginning of the previously mentioned zones which may offer support. IF price continues the rally from Monday and rallies through resistnace of Monday’s high, then next potential resistnace are the fib target clusters of 1.3500* and 1.3582.* Both of these zones have multiple levels of resistance and may cause strong selling the 1st time they are tested.

GBP/USD also had a big rally above last week’s consolidation pattern and has currently found resistance at the monthly pivot for the highs of the day. Price action for Tuesday is still looking bullish, especially if price rallies above Monday’s high. The next possible resistnace begins at 1.4958 which is last week’s high and a fib target cluster. IF price sells off, 1.4780 was a previously strong resistance level and may act as support if tested on Tuesday and 1.4690 is a 62% retracement of last week’s low from Monday’s current high!

USD/JPY sold off to last months high which has now acted as support multiple times and was the ultimate low of the day for Monday. Difficult to determine the trend for the day on Tuesday. IF price rallies, watch for possible resistance at 100.73 then at the monthly pivot of 101.17 for light resistnace. If price sells off below the previouly mentioned support level of 99.85, the next support is 99.34 and 98.70 for strong possible support.

USD/CHF sold off over 300 pips to just above the 200 MA and long term trendline. IF price retraces watch for a possible entry to get back into the downtrend at 1.1420, 1.1455 and 1.1491 as the daily fib levels for Monday. IF price does continue to sell off, the next possible support will be 1.1243 as last week’s low and last month’s low of 1.1161.

USD/CAD sold off on light volume and found support at last month’s low of 1.2193 which is also a monthly pivot. Price is bearish and if this level is broken tomorrow to the short side, you may attempt to sell the breakout. The next possible light support is the fib target at 1.2112 and fib target cluster and weekly pivot of 1.2039.* IF price rallies, the 1.2300 zone has been strong resistance before and 1.2323 is the next longer term 50% level for possible resistnace.

Happy trading