European forex blog

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.

EUR/USD found resistance at the weekly highs and sold off rapidly to the long term 38% fib

retracement for the low of the day which were both trading zones.  Price is over the 20/50

and 200 day MA’s but has met strong resistance levels as price has failed at this zone multiple

times this month.  IF price rallies again, 1.4236 is the 62% retracement of Tuesday and 1.4291

is approx. last week’s high where price may be resistance on Wednesday.  IF price sells off,

1.4123 and 1.4068 are the next long term fib retracement levels for potential support.

GBP/USD also rallied to strong resistance which has held since last May and sold off to double

bottom at the weekly lows from Sunday for the low of the day.  Price is just above the 20 and

50 day MA which may act as support if tested this week.  IF price rallies to retest the previously

mentioned resistance zone, watch for resistance from 1.6566-1.6586 (weekly pivot and last

week’s high) and at 1.6683 and 1.6743 which are fib projection targets from last week’s high/low

swing.  If price sells off, 1.6354 is the next long term 38% fib retracement and 1.6311 is last

week’s low which may be support when tested.

USD/JPY sold off after finding strong resistance at the 200 day MA and sold off to just above

the 38% fib retracement from the lows of 2 weeks ago and this week’s high.  If price sells off

again to test this mentioned level, 94.00 is the 38% level and 93.56 is the next 50% retracement

for possible support as well.  IF price rallies on Wednesday, 95.29 is the weekly high and 96.10

is the next fib target cluster for possible resistance levels.

USD/CAD sold off again to barely make new lows for month as price is again testing the strong

support levels from the lows of late May.  Price then quickly was bought and rallied for the rest

of the active trading session before selling back off showing indecision for the immediate price

direction for the rest of the week.  IF price does fail at the support level just mentioned and rallies,

1.0930 and 1.0975 are the next longer term fib retracements which may be resistance if tested.

If price sells off again, 1.0669 and 1.0613 are the next fib targets from various intra-weekly

swings for possible support.

USD/CHF sold off briefly to double bottom near the weekly low then rallied heavily to make

new weekly highs just above last week’s high as price found resistance for the high of the day

at the 20 day MA.  Price is stuck between strong support at lows from early June and resistance

from the 20 and 50 day MA’s resulting in the consolidating price action.  IF price rallies, 1.0800

is approx the weekly high and 1.0818 is the next 62% fib retracement from 2 weeks ago high

to last week’s low for possible resistance.  IF price sells off, 1.0634 is the weekly pivot and

begins the very strong potential support from the zone previously mentioned which may be

support and possible chance to get into a nice countertrend rally.  IF this level is broken,

however, be aware that a very strong sell off is likely to potentially happen as stops are

triggered from people who have had long positions from the zone for the past several months.

 

 

EUR/USD sold off sharply and trended down for most of the trading session then found support at the weekly pivot for the current low of the day.  Price attempted to rally above a long term trend line at the beginning of the Sunday session giving a false break out and resulted in the large sell off on Monday.  If price continues the sell off, watch for possible support at 1.3293 (next major fib level) then at 1.3225 (fib target and weekly pivot.)  If price rallies, watch Monday’s daily high of 1.3582 as possible resistance.

 

GBP/USD also rallied above the weekly and previous month’s high then sold off rapidly back into last week’s range.  The immediate trend is bearish but watch for possible support at 1.4630 and 1.4532* fib retracement clusters.  If price finds support and rallies, Monday’s high of 1.4950 is Monday’s high which may again be resistance.  1.5083 is the next possible resistance and the weekly fib of 1.5083.

 

USD/JPY rallied up strongly after a strong USD pushed price up then began to sell off in the late Monday session.  Price is over the 20/50 and 200 day MA’s but may need to correct itself to the short side on Tuesday or at least sell off to previous support with a chance to reenter the longer term uptrend.   IF price does sell off, 99.43-99.34 is a support cluster for strong potential support!  The next possible support is 98.70 as the next major fib retracement.  IF price rallies again, the next possible resistance are the fib targets of 101.65 and 102.68.

 

USD/CAD rallied up several hundred pips, had a slight retracement and is currently continuing to retest the day’s highs for possible resistance near the weekly pivot.  IF price continues to rally, the next potential resistance is 1.2469 and 1.2526 as the next major fib levels from last week’s sell off.  ALSO NOTE that the 20 and 50 day MA’s are very close to each other in the 1.2500 level!  IF price sells off, last month’s low and the weekly pivot of 1.2190 may offer strong support the first time tested.

 

USD/CHF also rallied up strongly after finding support at the 200 day MA and bottom of a long term consolidating wedge pattern.  If price is to continue the uptrend, the next possible resistance is 1.1431 and the monthly pivot of 1.1509.  IF price sells off again, the lows of Monday at 1.1241 could be support again and also watch for 1.1161 (the previously monthly lows).