Activity remains subdued as the weekend approaches
The EURUSD moved above the 1.4611 level but has so far respected the resistance against the 100 day MA at the 1.4637 level. The high corrective price comes in at 1.4625 so far. We will be watching that level into the close
The USDJPY is looking to test the rising 100 bar MA on the 5 minute chart at 89.23. There is support at the 89.01 level where the 200 bar MA is found. The pair is up from a low of 88.20 today.
The USDCHF remains below the 100 day moving average at the 1.0356 level. This level will be watched into the close. A close above would be bullish but the market will probably wait for a confirmation on Monday.
The GBPUSD remains below the 100 bar MA on the 5 minute chart but above support at yesterdays low at the 1.6214 level. The 100 bar MA comes in at the 1.6255 level and as long as the price can remain below that level, the downward bias remains.
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Hi Greg,
I always enjoy your analysis, especially your observations regarding the MAs.
Several comments re your EUR/USD:
Your trendline anchored in June and August appears to overlook the July 8th low. It does appear to have a3rd anchor though on July 9th, which I adds some validity…. I’ve added it to my EUR/USD chart.
No mention of the cluster of fib retracement levels between 1.4594 (50% from 8/17 Low) and 1.4626 (100% of 11/3 Low). This zone also includes significant levels from the lows of 4/22, 6/16 and 10/2. The 61.8% retracement from July to October of last year also comes in at 1.4621 here…….
I believe it’s a somewhat bullish sign (if only for the short term) that price closed ABOVE the 1.4626 level. I think this will be a bit of a chop zone in the EUR/USD’s descent to 4480 and below.
I’ll be Long above this zone (and the 100 Day SMA), with stops close beneath!
Thanks for all your work!
-Dave
Dave,
Thanks for your observations Dave. It is an example of searching for those clues the market gives you and how traders can use those levels to execute low risk trades. If an area has a number of key support levels, it gives the trader a reason to buy. If the price starts to move below that key support, that is the stop level as Dave comments.
Markets are fluid. They ebb and flow but through technical analysis and observing the market closely and controling risk, there are trades that instill confidence to act. From there it is about executing the plan and seeing if the market does what it should do. If it doesn’t get out and look for the next opportunity.
Greg