European forex blog

EUR/USD rallied up strongly through resistance and made fresh yearly highs after price sold off slightly

for several days in row beginning late last week.  The high of the day is currently at the weekly pivot

where price is currently residing and testing again for resistance.  Because of the lack of selling at this

level, price may merely be stalling and consolidating before attempting to rally again at some point

during the rest of the week.  IF price does rally and pops over the weekly pivot, the next possible

resistance are the fib targets from the weekly high/low at 1.4903 and 1.4953.  If price does eventually

sell off from the weekly pivot, the next potential support is the current 62% weekly fib at 1.4693 and

the next long term 38% retracement at 1.4580.

GBP/USD also continued to rally from Monday’s rally and double bottom from the beginning of the

month and found the high of the day at the 20 day MA.  The trend bias is still bearish and the next

potential resistance are the next long term 50/62% retracements at 1.6437 and 1.6508.  If price sells

off from the 20 day MA and current weekly high, the current weekly 38/50/62% retracements are

1.6293, 1.6363-1.6232 for possible support as price sells off.

USD/JPY continued to sell off after finding resistance at the 20 day MA on Monday and sold off to

the next 62% retracement and monthly and weekly pivots where price is currently testing for support.

If the sell off continues, 90.58 and 90.25 are fib profit targets for possible support.  IF price reverses

from the weekly pivot and rallies, 91.72 and 91.91 are the current weekly 50/62% retracement levels

that may offer resistance.

USD/CAD sold off also from the 20 day MA and sold off early in the trading session on Tuesday as

price approaches the previously strong support level where price found support multiple times.  IF

price continues to sell off to retest the level, watch for possible support at the 1.0600-1.0587 zone

and the next strong possible support at the fib target cluster at 1.0550.   IF price rallies, from Tuesday’s

current low and rallies, 1.0756 and 1.0779 are the current 50/62% retracements for possible resistance

if price rallies.

EUR/USD sold off to last week’s lows, found support and rallied to a long term trend line that

has contained price multiple times in the last 10 days and sold off.  Price is still above 20 and 50

day MA’s and stuck between resistance from the long term trend line.  If price sells off again and

breaks the 20 day MA, watch for possible support at the weekly lows near approx. 1.4200.

1.4100 is near the monthly and weekly pivot which may also provide support if tested on

Monday or Tuesday.

GBP/USD rallied to the 50 day MA on Friday and also double topped at the weekly highs and

is currently testing the 1.6400 level again for resistance.  IF price rallies over the 50 day MA,

the next potential resistance is the fib target and weekly pivot beginning at 1.6481 and the next fib

target cluster at 1.6522.  If price fails at the 1.6400 level and sells off the fib retracement levels

from last week’s range are currently 1.6296, 1.6261 and 1.6226.

USD/JPY sold off last week and found support at the long term lows from early July and rallying

on Thursday/Friday.  IF price continues to rally from the strong support, the next potential

resistance are 93.52 and 93.88 as the 50/62% retracements from the high/low swings of the last

two weeks.  IF price sells off again to retest the lows of last week, watch for possible support at

92.00 (support level from last week) and 91.37 (fib target.)

USD/CAD had a huge sell off after the NFP news was released and continued to sell off late

afternoon on Friday as price closed below the 20 and 50 day MA’s.  IF the selling pressure

forces another sell off early this week, 1.0800 is the next major swing low point for potential

support and 1.0720 is the prior weekly low and fib target as well.  IF price finds support and

rallies, the current fib retracements for last week that may offer resistance are 1.0930, 1.0963

and 1.0996.*

USD/CHF rallied hard after the NFP news but still found resistance at the 20 day MA and

previously strong resistance level where price has stalled several times in the past 10 days.  IF

price again rallies on Monday, the next potential resistance is 1.0695 (weekly pivot and previous

swing high point) and 1.0714 (high from two weeks ago.)  IF price sells off, 1.0550 has been

strong also been strong support in the past several weeks and may again provide support if

tested early this week.