European forex blog

 

 

EUR/USD continued to reverse from the long term rally and sell off late last week after some consolidation and is still overbought so watch for that to likely continue atleast into the early part of this week.  The next possible support is 1.3405 (long term 38% retracement) and 1.3362 (fib target from last week’s high/low swings.) If price again rallies, the next resistance begins near 1.3558- 1.3576 as multiple

pivots and key fib retracements are currently located. 

 

GBP/USD remained in a sideways consolidating channel for the entire weak, but along with the EUR, price is looking bearish.  If price does sell off, the next high probably potential support begins at 1.5000 and at 1.4874 (next major fib retracement level.)  If price rallies to test the highs, 1.5350 is last week’s high and could also be high probable resistance the 1st time tested this week.  The next potential resistance is in the 1.5500 area (multiple pivots and fib profit targets.)

 

USD/JPY trended down for all of last week as a very weak JPY forced price short and then consolidated on Friday as price closed near it’s lows.  IF price does find support and rallies, the next resistance are the major fib retracement levels at 96.65, 97.24 and 97.84.  If the downtrend continues, watch for potential support is currently 94.08 and 93.44 as the next fib target clusters.

 

USD/CAD rallied for the entire week as price is very oversold and is quickly retracing back to the 200 and 20 day averages which are very close to each other in the 1.1900 range which should be tested some time this week so take note.  If price does begin to rally to this level also watch for possible resistance at 1.1864 (long term 38% retracement.)  IF price sells off, the current fib retracements  from last week’s range which may provide support are currently 1.1638 and 1.1600.

 

USD/CHF also rallied to close out the week on Friday afternoon and is closing in on the 20 day MA and the 200/50 MA’s.  If price continues to rally, the next long term fib retracement levels are currently 1.1357 and 1.1447 for the next strong potential resistance.  If price sells off, 1.1118 and 1.1084 are the current 50/62% fib retracement levels for your possible support.  If price makes a new 

daily higher high on Sunday night or Monday, redraw the levels from the next new higher high.  

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