Cable was rocking for several weeks since the beginning of August, but after posting a fresh year high at 1.6310 the pair stalled for a while. Many analysts, including us pointed to a forming down trend on 4H chart, but after a clear “lower high”, followed by “lower low” GBPUSD suddenly rocked again. So what’s next?
EURUSD is in a perfect set up for a medium-term trade. Daily chart shows a beautiful pull back after a strong rally, reaching the first level of support at around 1.2830-40. The whole session was dull and painful with bears scared to sell after touching 200EMA and 21 daily MA. The latter one is pretty much mimicking 5 weekly MA, which usually creates a temporary support if 5/8 MA pair opens wide. This is generally good set-up on all time scales, allowing a scalp or mid-term trade before the trend resumes.
Do not take us wrong – we are not suggesting opening a long term bullish position just yet – 61.8% Fib, coinciding with the previous resistance at 1.2730ish would look much more attractive option to go long for long. But surfing a smaller wave with a target of 120-140
EURUSD is rally is beautiful, but we think it is time to lock your profits. First of all the currency is approaching previous levels of congestion, between 1.3060 and 1.3250. Hard to say where exactly lies the resistance, but here is our alternative view on the pair:
This is a 4 Hour chart with daily pivots. One need to keep in mind, that pivot levels are calculated in different manner by brokers and key entry data like high, low and close/open of the daily candles can vary. Therefore we never expect pair to turn around precisely on the level, but here something to think about. EURUSD did not touch any of the support pivot points, even the weakest S1, for 7 consecutive trading dates. Culminating in reach and immediate retrieve from the strongest R3 pivot on Friday.
Massive sell of the dollar across all markets. EURUSD turned to be stronger than we expected and heading north already. There is nothing we can see that can stop it until 1.30 resistance level. But again, FOMC meeting can mess up a lot of cards in this game.
USDCHF is following the group by selling off dollar. But this one is approaching a very strong support, together with extremely oversold oscillators on daily and 4H charts. As you can see 200 daily MA acted as a dynamic support several times recently and now the market is trading around it again. That can be an opportunity for a small pull back to join the USD sell party for those, who missed EUR, AUD or GBP.
USDJPY developed exactly as predicted yesterday with traders in Asia keen to test 77.60ish support. Given
Following surprisingly low NFP reading on Friday, new rumours are browsing the market. Slowing down in the US economic recovery increased speculations that the Federal Reserve will go for a new round of QE. That definitely was not a good news for dollar, which slipped against any other currency, including a very conservatively moving yen. Here is our take on current technical position of the market:
USDJPY dropped 100 pips on Friday and produced a fresh low on 4H chart. However, without a decent retracement traders seem to loose the interest in trading the pair and it is boringly flat during Monday London session. But the new low should generate some interest in Asian markets later today, probably boosting sales to a new levels. We expect the next level of support to be tested at 77.60, which opens some opportunities