European forex blog

NEWS: GBP 4:30AM est MPC Meeting Minutes

CAD 7:00 AM est Core CPI m/m

USD 10:30 AM est Crude Oil Inventories

2:00 PM est FOMC Meeting Minutes *

EUR/USD extended from Monday’s rally and found resistance at the next fib target, weekly pivot and previous high peak from last week for the current highs of the day. If price continues to rally, the next possible resistance is 1.3722 for the highs of the week and close to the yearly highs, then at 1.3800 (fib projection target.) IF price sells off, 1.3516 is the 62% fib retracement for week and 1.3424 is the current

weekly low for the possible support levels for Wednesday.

GBP/USD rallied to new yearly highs and found resistance at the 1.5500 zone where price is consolidating. Price well over the 20/50 day MA’s and approaching the 200 day MA. If price continues to rally the next possible resistance for fib targets are currently located at 1.5600 (also very close to the 200 day MA!) and 1.5650. If price sell off, 1.5350 and 1.5291 are the 38/50% retracements from

last week’s low and this week’s high.

USD/JPY was a very low volatility day and after making a slight new weekly high sold off and consolidated on low volume for the rest of the day. Price may be ready to rally and retest the 20/50 and 200 day MA’s for resistance before continuing the downtrend. If price does rally, the next possible resistance is 97.15 and 97.77 (the next 50/62% retracement levels) for potential resistance. If price does not make a new daily higher high on Tuesday night or Wednesday, then the current 62% retracement for the week is 95.38 and 94.55 is the current weekly low for possible support.

USD/CHF sold off and found strong support at the next strong 62% retracement and rallied then sold off below this level and is approaching previous swings from last week’s lows to test for support. Price is still below the 20/50 and 200 day MA’s. IF price continues to sell off, 1.1000 is the next zone for possible support and is just above last week’s low for possible support. IF price rallies, 1.1187 is the current 62% retracement for the week and a monthly pivot, and 1.1251 is among the weelky highs for possible resistance!

USD/CAD sold off to continue with the downtrend from Monday, found support at the 1st buy zone and weekly pivot, then sold off again to find support at the next fib target just below this level for the current lows of the day. IF the sell off continues, watch for potential support at 1.1481 (last weekly low and fib target) and at the next fib target cluster beginning at 1.1450. IF price needs to correct itself and rallies from this level, the current weekly fib retracement levels for potential resistance are 1.1667 and 1.1700. These levels are also in the trade zones so if a new lower low in price is made, the trade zones should have the updated zones for possible resistance so

please take note!

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