European forex blog

EUR/USD had a big rally to open the session, retraced to 50% of the breakout then rallied

again to test the highs of the day.  Currently Price is well above the 20 and 50 day MA’s but

may need to retrace to test support if the uptrend is to continue.  IF price does sell off, 1.4250

is a fib retracement and weekly pivot and 1.4210 is the next long term 50% retracement for

possible support.  IF momentum continues and takes price to test the highs, 1.4376 is the high

for last week and may again be resistance and 1.4441 is the next fib target from Friday’s

swing high/low.

GBP/USD rallied to double top at the previous weekly highs then sold off again, as price is

still contained between the 20 and 50 day MA’s as support and resistance.   IF price rallies

to test the highs, 1.6624 is the high of last week and 1.6700 is the next fib target for potential

resistance for Monday.  If price reverses and sells off, 1.6408 is the long term 62%

retracement and 1.6276 is the low of last week for high possible support for Monday as

well.

USD/JPY sold off on Friday to make new monthly lows then rallied hard in the afternoon

session and has since rallied early Sunday session to test the highs of Friday.  IF price keeps

rallying 95.08 and 95.60 are the 38/50% retracements of the past several weeks where price

may find resistance.   IF price sells off, 93.43 is the low of last week for possible support

if price tests this level on Monday or Tuesday.

USD/CAD also rallied heavily in the afternoon of the Friday session and is approaching the

potentially strong resistance where the 20/50 and 200 day MA’s are clustered.  95.08 and

95.60 are the next 38/50% retracements where price may find resistance.  IF price sells off,

93.43 is the weekly low and weekly pivot for possible support and 92.65 is the next light

potential support point (fib target.)

USD/CHF sold off to major support for the lows of the week, where price is currently

testing again for support just above the monthly pivot.  If price ultimately finds support here

and rallies, 1.0660 and 1.0681 are the next fib retracement levels from different weekly

and multi-weekly swings for possible resistance.  IF price sells off, 1.0507 is a fib target

and 1.0477 is a fib target and weekly pivot for possible support as well.

 

EUR/USD continued from Monday’s selloff and found support at the weekly pivot.  Watch for possible resistance the weekly fib levels for a chance to reenter the downtrend at 1.3334, 1.3381 and 1.3427. IF price closes below the 20 day MA and continues to sell off watch for approx. 1.3450 (fib target and monthly pivot) and 1.3113 (monthly low) to offer possible support. 

 

GBP/USD also showed change in direction by selling off to the weekly pivot then rallied back into the range and finding resistance at the 50% weekly fib.  IF price rallies again to test Monday’s high, the next 62% retracement is 1.4812-1.4850 (62% fib retracement/monthly pivot.)  The current weekly high is 1.4958 which should provide light potential resistance if tested.  IF price sells off, the fib levels from last week’s low and this week’s current high which may be support are 1.4533 and 1.4434* (major fib cluster for strong support.)

 

USD/JPY was too extended after the recent rally over the 200 day MA and did in fact continue to sell off somewhat and is hovering around last week’s high.  Price is still over the 20/50 and 200 day MA’s and may still be need or more selling off.  Watch for potential support beginning at 99.54 and 98.69 which also begin retracement clusters from various swings.   IF price DOES continue the rally, the current weekly and monthly high of 101.45 and 102.57 (fib target.)

 

USD/CAD rallied up just shy of the 20/50 day MA’s in the 1.2500 level and sold off rapidly for the rest of the session to the 62% retracement of the week.  IF price continues the sell off, the current weekly low of 1.2228 may offer support if tested as well as the previous monthly low of 1.2193 which is also a monthly pivot.  IF price rallies, the 62% retracement of high of last week and the low of this week is 1.2525 and 1.2672 is a fib target and weekly pivot for the next potential resistance levels!

 

USD/CHF bounced from the 20 day MA and sold off to previous resistance which is now support where price currently is still currently testing..  IF price continues to drop, the next weekly fib levels for possible support are 1.1390, 1.1361 and 1.1333.  Next potential resistance is are the monthly pivot of 1.1509 and the previous weekly high of 1.1550.

Happy trading.