Week starts with a small dose of optimism, as an Italian newspaper said the IMF is preparing an Euro 600B loan for Italy, if the country debt worsens. The EUR/USD, that started the week testing 1.3320 in early interbank trading, gapping almost 100 pips at the opening; hourly chart shows an increasing bullish tone due to the big unfilled gap, with indicators heading north just above their midlines and price above 20 SMA; pair will find short term resistance around 1.3345 price zone, 20 SMA in the 4 hours chart. Only above it the bullish correction may extend over the upcoming sessions.
Support levels: 1.3270 1.3230 1.3290
Resistance levels: 1.3345 1.3680 1.3420
Pound also jumped higher at the opening, although quickly filled the gap and regained the upside, trading quite close to the low set past week at 1.5421. Daily chart shows a bottom may have been reached offering a reversal candle and pointing for a bullish corrective movement. Price needs however, to extend beyond 1.5530 area to confirm such continuation in the upcoming sessions. In the hourly chart, price opened above a flat 20 SMA while indicators head higher, while 4 hours ones also point for a bullish correction if the pair manages to open a candle above mentioned price zone.
Support levels: 1.5440 1.5400 1.5360
Resistance levels: 1.5530 1.5570 1.5610
Short covering in USD crosses gave some support to Japanese yen that gained some ground on dollar slides. Gaining some bearish tone although with indicators above their midlines, the pair trades just below the 50% retracement of the post intervention rally and below the 20 SMA in the hourly chart. Bigger tie frames also show price has lost past sessions’ bullish tone, yet only below 77.10 the USD/JPY may confirm a further slides today.
Support levels: 77.45 77.10 76.75
Resistance levels: 77.75 78.05 78.40
Australian dollar also open a tad higher trading above 0.9800 after closing past Friday right below the 0.9700 level. The hourly chart shows price aiming to break the daily descendant trend line coming from 1.0290 high set on November 14th around 0.9830 price zone. With both 1 and 4 hours chart showing indicators heading higher and price above 20 SMA, a test of the 0.9900 area seems likely for the upcoming sessions. 0.9900 represents the 61.8% retracement of the daily bullish run from 0.9386 to 1.0750 which turns the level a strong resistance area that won’t be break easily.
Support levels: 0.9800 0.9760 0.9720
Resistance levels: 0.9900 0.9955 0.9990
New to forex? Visit our Glossary!
Today you will find the term, Print.
 |
"Simply a Must Read for Every Serious Forex Beginner" Available at Amazon Now also for Kindle
|
