26
Review on Thursday 26
NEWS: GBP 5:30 AM est Retail Sales
USD 8:30 AM est ** Unemployment Claims **
NZD 5:45 PM est Trade Balance / GDP
EUR/USD double bottomed at the weekly lows and rallied strongly for the rest of the day after a home sales report was released which resulted in the weak USD. Price is still in a slight downward sloping channel and the high of the day was ultimately at the top of the channel. IF price continues to rally, watch for the daily highs and weekly highs of 1.3650 and 1.3738 as potential resistance. IF price sells off, 1.3430 is the long term 38% fib retracement and near the low of the day on Wednesday, then 1.3335 as the next 50% fib retracement for the next possible support levels.
GBP/USD sold off to last weeks high’s and tested this level now for support near a weekly pivot and 1.4500 whole number. Price is over the 20 and 50 day MA’s but may be ready for a correction to the short side. IF price does sell off, watch for possible support at 1.4420 and 1.4310 as the next major fib levels from last week’s low to this week’s current high. IF price rallies, the next possible resistance is the current weekly high of 1.4778 and the next monthly pivot of 1.4846.
USD/JPY sold off again as price found resistance just above the 20 day MA and a major trend line. If price continues to sell off from this momentum on Thursday, 97.00 and 96.64 are the next fib retracement levels which may act as support. Watch for possible resistance from 98.57 to 99.00 which represents a strong resistance cluster and may present potential countertrend opportunities.
USD/CHF rallied to double top at the weekly highs and sold off sharply on USD news to find support at the 200 day MA again which has held price since middle of last week. IF price manages to sell off below this level, you may attempt to sell the break down but be cautious of false breakouts. IF price rallies, the current weekly highs in the 1.1325 zone may again provide resistance.
USD/CAD also sold off strongly after USD news but managed to rally in the afternoon and double top at the daily highs. Price is still below the 20 and 50 day MA’s but could be ready to rally after finding support at last week’s low on Monday of THIS week. IF price sells off, this level at 1.2193 and last MONTH’S low of 1.2134 may act as strong support! IF price rallies, 1.2436 is a monthly mid-pivot and 1.2471 is the next major 50% retracement which could be resistance!