may
Review on 5th of May
NEWS: AUD 12:30 AM est Cash Rate
USD 10:00 AM est Fed Chairman Bernanke Testifies
JPY (all day) Bank Holiday
GBP 7:01 PM est Nationwide Consumer Confidence
NOTE: Many USD based currencies are making new daily higherhighs and lower lows as many have broken through previouslystrong resistance or support. IF new highs/lows are made, thiscan change the fib retracement ratios, altering the listed supportand resistance points. I will attempt to update the trade zones if these points change before tommorow so use the trade zonesfor confirmation!
EUR/USD rallied up through resistance and above the long term trend line that hadcontained price since early March and is approaching the 200 day MA. The trend isstill obviously up as many of the USD based pairs have broken through major supportor resistance as demonstrated by a weak USD. IF price continues to rally, the nextpotential resistance is 1.3500 (fib target and approx. 200 day MA) and the next possible stronger resistance cluster beginning at 1.3550. If price sells off, 1.3250 is the current major 38% retracement as 1.3219 is as well which is also the close to the current weekly lows for potential support.
GBP/USD rallied up making new 10 day highs and is approaching the current monthly high of 1.5066 which may be strong resistance the 1st time tested if this level has not been tested as of Tuesday AM. If price does sell off, the current key fib retracement levels for possible support are 1.4869 and 1.4836.* IF price continues to rally up through the previous month’s high, the next potential resistance is the fib target and monthly pivot cluster beginning at 1.5108 and the next fib target of 1.5209 which may also be used as profit taking levels if you are currently in a long from the break out of the previously monthly high level.
USD/JPY found resistance at last week’s high and sold off slightly to test the 20 day MA as the daily lows. IF price continues to sell off, as a result of the weak USD, then watch for possible support at the next fib retracements beginning at 98.04* and 97.58. IF price rallies, last week’s high which had contained price previously multiple times at 99.58, may again provide resistance and 100.00 is the next potential resistance cluster.
USD/CHF sold off through major support at the 200 day MA and currently testing the previous month’s low as support for the lows of the day. The trend should still be down for most of the rest of the week, unless price retraces to test the previous strong support as resistance! IF price does retrace and rally, 1.1372 is approx. the area of the 200 day MA and 1.1427 begins an area of a fib retracement cluster for potential resistance and a chance to reenter the downtrend! IF price keeps selling off, the next possible support is the fib target of 1.1200 (and whole number) and the next fib target and weekly-mid pivot at 1.1144.
USD/CAD continued with the strong downtrend and made new 10 day and current yearly lows as price sold off below the 200 day MA strongly which may continue for the rest of the week. IF price retraces to previous resistance, watch for a chance to reenter the downtrend. 1.1929 and 1.1994 are the next current major fib retracement levels for possible resistance. IF price continues to sell off, watch for possible support at 1.1632 (fib target and monthly pivot) and beginning at 1.1535 (2nd buy zone). Use caution taking countertrend trades if the FXPI and FXMM are at their extremes!
Happy Trading 
Review on Friday
NEWS: GBP 4:30 AM est Manufacturing PMI
USD 9:55 AM est Revised UoM Consumer Sentiment
Revised UoM Inflation Expectations
10:00 AM est ISM Manufacturing PMI
EUR/USD rallied to double top at the high of two weeks ago then sold off rapidly to find supportat 20 day MA and the 38% fib retracement from the low of two weeks ago and high of this week.The high was also just outside of the long term trend channel seen on a daily chart, which may indicated that price is potentially going to bearish on Friday. IF price does sell off, watch for support at 1st buy zone from 1.3150-1.3128 (major fib cluster/monthly pivot) and the next major 62% fib retracement at 1.3076. IF price rallies, 1.3426 is the beginning of the next fib target cluster, as well as 1.3478 for the next potential resistance.
GBP/USD also rallied to a fib target and sell zone then sold off rapidly to test and find support at the 20 day MA for the current daily lows. IF price sells off, the next possible support levels will be 1.4682 and 1.4625-1.4607 (weekly pivot/62% fib retracement.) IF price continues with the longer term rally, the next possible resistance are the weekly highs at approx. 1.4945 and at 1.5000.*
USD/JPY continued with the weekly strong rally as price found resistance at the 200 and 20 day MA’s for the high of the day. The immediate trend is still bullish, and if price does continue to rally watch for possible resistance at the next fib retracement level at 99.22 and the monthly high and fib target of 99.66. IF price sells off, watch for a chance to reenter the uptrend at the fib retracement levels of (98.08-97.87) and the next longer term 38% fib retracement of 97.29.
USD/CAD continued with the long term down trend and made new monthly lows as price is now approaching the 200 day MA. If the downtrend is to continue, watch for potential resistance and a chance to reenter the downtrend at the key fib retracement levels at 1.2063 and 1.2107.* IF price does continue to sell off, the current possible support levels are the weekly pivot and fib target beginning at 1.1791 and the next major fib target at approx. 1.1706.
USD/CHF sold off below the 200 day MA, then rallied strongly to close over the MA which has
acted as strong support since mid-march. Price is still in a long term consolidating wedge pattern best seen on a long term, or daily chart. If price rallies, the 1.1500 zone contains is currently very strong potential resistance is this level is tested on Friday. The next possible resistance is 1.1560. IF price sells off, and tests the weekly lows, watch for potential support at 1.1200 and 1.1159.* These levels are fib targets and the previous monthly low (1.1161)