GBPUSD looks toward 100 and 200 hour MA

The GBPUSD has 100 and 200 hour MA resistance above at the 1.5929 to 1.5937 levels respectively.   The GBPUSD has been consolidating after breaking below the neckline of the head and shoulder formation off the daily chart at the 1.6165 level on September 24th.   The price has remained below this level since that day.  The low reached 1.5769. 

As long as the price remains below these moving averages, the bias is to the downside.  However, a move above, would turn the bias up with the next target of 1.6020 where the top trendline off the consolidation range is found (see chart above).   On the downside, the support comes in at the  1.5823 level where the bottom trendline in the same chart above is currently loacate.

$USDJPY between support and resistance. A move above the 100 hour MA needed to confirm upside.

The 88.82 closing level from yesterday is providing a level for buyers to buy against (see prior post) . The 89.32/35 area provided a level for sellers to sell against.  The bounce off the 88.00 level and ability to stay above the channel trendline at the 88.50 level gives the pair a small bullish bias today. Confirmation of the upside will require a move back above the 100 hour moving average. 

Be patient for good trade location but be aware that the slightly bullish bias needs the confirmation at some point.

Meanwhile, EURJPY held the 200 hour MA for the 2nd consecutive day and moved back below the 100 hour MA at the 130.70 level. The price is back up testing the 100 hour MA (blue line in the chart above).  A move above should take another run at the 200 hour MA at the 131.03 level. A move above next targets 131.48 for the pair.

$AUDUSD may have peaked at target level of 0.8952

The AUDUSD reached a high of 0.8950 today.  The target level as per the post yesterday was 0.8952 ( CLICK HERE FOR POST).   See the post for a discussion on the levels importance from a technical basis.

The ability to hold the level may signal a temporary high for the pair. 

The correction off the high took the pair down to a low of 0.8875 where profit takers have reemerged.  The 0.8888 level (75% of the move down from the July 2008 high to the October low) remains in play as a level to watch today. Also the 0.8858 level which corresponds with the high from Ocotber 1st is another key level on the downside. Breaks of these levels should confirm further downside pressure.  A move below these levels would next target the 0.8804 level.

On the topside, Look for sellers at the 0.8916/20 level. This is was a high earlier today and corresponds with the current 100 bar MA on the 5 minute chart.  Watch for sellers against this level today.

$USDJPY moves off the 100 hour moving average

The 100 hour moving average at the 89.32 did in fact slow the rise higher (see prior post) and the price has retreated.  Look for buyers to support the market against the 88.82 level which is the closing level from yesterday.

EURUSD moves toward support at the 1.4654

The 38.2% retracement of the move up for the EURUSD comes in at the 1.4654 level. The low has reach 1.4664 so far today.  We will be looking for some support against this level today.  A break of that level has the 100 and 200 hour MA at the 1.4632 level as good support.  Both of those key moving averages have converged at that level. Look for buyers against this level today.

On the upside, the 100 and 200 bar MA on the 5 minute chart have converged and are moving down toward the 50% rettracment of the days range. That level comes in at 1.4700.  Look for profit taking selling against the level.

USDJPY bounces off the 88.00 level strongly. Approached 100 hr MA resistance at 89.33.

The USDJPY tested the downside (and the resolve of the central bank) reaching a low of 88.00.  Along the way, the September 28th low of 88.23 was taken out. Also the trendline from the channel was also breached. 

The pair moved sharplt to a low of 88.00 where buyers emerged.   It is never good to take out a low or high by a few pips. It is also not good for a new low or high to stop at a “big figure” value like 88.00.  When it does, the direction can be reversed and that helped contribute to a sharp bounce. 

From a technical perspective, the price will likely find support at the 88.53 level where the channel trendline on the daily chart is found.  Before that level look for the 88.82 level to provide support. This is the closing level from yesterday. 

On the topside, the pair is approaching the 100 hour MA at the 89.33 level. Look for profit taking sellers against this level with stops on a move above.

Traveling for rest of day.

Will be back tomorrow.  Good luck with your trading. Greg

EURUSD corrects down, as profit takers enter the market. Support at 1.4719 and 1.4704 eyed.

The EURUSD has corrected down as profit takers enter and sell the pair down.  The price has dipped below the 200 bar MA on the 5 minute chart at the 1.4719 level but has remained above the other key support at the 1.4705 level (see prior posts).   Buyers should reemerge against these levels with stops below.