Review on 27th of May
NEWS: GBP (all day) Nationwide HPI
CAD 8:30 AM est Corporate Profits
USD 10:00 AM est Existing Home Sales
AUD 9:30 PM est Private Capital Expenditure q/q
EUR/USD broke through Monday’s range and sold off rapidly to a fib level then rallied hard back into the consolidation area and is currently testing the highs of the week for resistance for the highs of the day. IF price rallies up, 1.4050 begins a zone containing the current yearly highs and was also the highs of last week as price found resistance at this level and sold off. This level may provide resistance if tested on Wednesday. The next possible resistance is 1.4172 (fib target.) IF price sells off, 1.3871 is a longer term 38% retracement and the low
of Tuesday and 1.3816 (fib retracement cluster and weekly pivot) for your potential support levels for Wednesday.
GBP/USD rallied to test the current weekly highs, sold off to a fib retracement and again has rallied to retest the highs of the week where price currently resides. IF price breaks through this level, the next possible resistance are the fib targets at 1.6034 and 1.6111. IF price fails at this level and sells off, watch for possible support just below 1.5800 and 1.5740. These represent the fib retracement levels from the most recent valid swing and the low of the week, as well.
USD/JPY had a very narrow range and low volatility as price moved less then 50% of its normal daily ATR (Average True Range.) This usually precedes a breakout trending type day so take note for Wednesday or Thursday. Price is also at the bottom of a long range channel seen on a daily chart and may be ready for a correction to the long side after the huge sell off for most of the month of May. IF price does rally, the next possible resistance are 95.25 and 96.10. These levels represent fib retracements and clusters of other various forms of resistance. IF price again sells off, 94.37 is a 62% retracement and last week’s low of 93.86 may be support!
USD/CHF rallied to a fib retracement level and sold off to retest the lows of the week where price has currently found support and rallied back into the daily trading range. Price is very weak and is below the 20/50 and 200 day MA’s. IF price breaks support you may wish to attempt to short the breakdown of the level. The next possible support will be 1.0743 and 1.0719 that you may use as profit taking levels or potential counter trend opportunities. IF price rallies, from the current weekly low of 1.0813, then watch for possible resistance at 1.0928 (weekly high) and 1.0962 (next 62% retracement and monthly pivot.)
USD/CAD had a strong rally into resistance from a previous swing point from last Friday and sold off rapidly just below last week’s low to make new yearly lows where price currently resides. IF price continues the sell off, the next possible support are the fib targets from 1.1075 and 1.1006. These may be significant support levels but use caution when the prevailing trend is at its extremes. Use the FXPI and FXMM for confirmation when taking countertrend trades. If price finds support and rallies from 1.1170 level, then the current fib retracement levels that may provide resistance are 1.1270 and 1.1322. IF a new lower daily low is made below 1.1170 then redraw your own fibs and disregard the possible resistance levels I just mentioned.
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