European forex blog

EUR/USD rallied to the previously mentioned 1.4000 level for the highs of the week on Friday as price also found resistance at the 20 day MA and sold off back into the range.  If price rallies on Monday, this level, 1.4000 may again provide resistance, as well as the next major 50% fib retracement at 1.4043.  IF price sells off, the 62% retracement from last week’s range is 1.3849 and just above the monthly pivot and could be potentially strong support.  The next possible  support is 1.3760 (last week’s low.)

GBP/USD rallied hard after finding support at the 20 day MA for multiple days and is currently approaching the monthly and yearly highs.  IF price does continue to rally, last week’s high was 1.6621 and 1.6700 is a fib target which may also offer resistance.   IF price sells off, the 62% retracement from last week’s range is currently 1.6330 and 1.6210 is the next long term range 50% retracement for potential support.

USD/JPY rallied heavily on Thursday before selling off strongly on Friday and closing below the 20/50 and 200 day MA’s.   Price is currently stuck in between a long term wedge consolidation pattern seen on a daily chart as price has bounced from the tops and bottoms of this range for the last several months.  If price rallies on Monday, 97.05 and 97.42 are the current 50/62% retracements for last week’s high/low range for possible resistance.  If price sells off, 95.63 is approx. last week’s low and 95.02 begins a fib target cluster for potential support.

USD/CAD consolidated for most of the week within a tight range as price attempted to break out of the range on Wednesday resulting in a false breakout and a sell off back into the range. Price is between the 20 and 50 day MA’s.  1.1450 is last week’s high and 1.1540 is a fib target for possible resistance on Monday.  IF price sells off, watch for potential support at 1.1255 and 1.1196 (next major fib support levels.)