Source: Visual Chart
We saw jerky trade on Thursday, with an endless array of conflicting headlines on Greece following ECB's decision to cut rates by 25bp. A bear trap was followed by a test of 1.3850 before consolidating lower. Resistance is seen near 1.3900 handle (200-day SMA) up to 1.3927 (50% retracement of the 1.4258-1.3608 decline). A close above 1.3840 in lower time frames put the odds for suggested upward tendencies, however, and ahead of the US Payrolls, pair may likely trade in range.
Support levels: 1.3765 1.3720 1.3680
Resistance levels: 1.3830 1.3855 1.3900
Source: Visual Chart
Despite regaining the 1.6000 handle, the focus remains to the upside as long as above the 1.6093 Nov 1 high. While this region caps the upside, a retest of the 55 day MA seen t 1.5875, followed by 1.5850, Oct 18 high, and 1.5715, Oct 14 low, is favoured. Close below the 1.5850-53 region would encourage bears to target lower levels mentioned.
Support levels: 1.6010 1.5965 1.5930
Resistance levels: 1.6040 1.6080 1.6130
Source: Visual Chart
No changes in the pair other than the buying pressure on the Yen has accelerated mildly as uncertainty surrounding the European crisis depeens, with no clarity as to who will be running the Greek government over the coming days. The support at 77.86, land in the sand the BoJ appears to be defending, continues to hold. Support is of great technical significance, with the 100-day moving average, Sept hig, and the 38.2% retracement of the post intervention rally, all around the same area. Expect more downside pressure.
Support levels: 77.80 77.50 77.20
Resistance levels: 78.35 78.60 79.00
Source: Visual Chart
Good opportunities may arise for dip buers, as the predictions for a potential target of 0.9300, Oct swing hig, remains valid as long as price holds above the 200-day MA, today at 0.8715. We need to see a break of resistance at 0.8870, bottomside of the 20-day MA, which has been capping the upside for the past two days. A break of either extreme will gauge further directions.
Support levels: 0.8730 0.8650 0.8560
Resistance levels: 0.8800 0.8850 0.8900
New to forex? Visit our Glossary!
Today you will find the term, Percentage Envelope.
 |
"Simply a Must Read for Every Serious Forex Beginner" Available at Amazon Now also for Kindle
|
