Forex Trading GBPUSD breaking through… Stops hit

The trend has been a snap back after the stops are exhausted.  Watch the 1.8303 level…

Forex Trading GBPUSD support at the 1.8303 level on a longer term chart

The GBPUSD has longer term support at the 1.8303 level.  The level corresponds with the 38.2% retracement level of the move up from the June 2001 low of 1.3681 and the Novebe 2007 high of 2.1160

Forex News BOE Blanchflower on wires

• UK behind the curve on rates
• Sees inflation falling in medium term
• UK needs substantial drop in interest rates
• Says UK is in a recession

Note Blanchflower is a dove.  He has been voting for a cut when the rest of the BOE has been unchanged given the above target inflation rate.  He may prove to be right in the long run as the economy is getting weaker.  Nationwide Housing Prices reported earlier fell 10.5% YoY versus -9.6% expectation.

Forex Trading USDJPY bounces … Market is illiquid

The USDJPY tests the low and bounces strongly. 

Forex Trading EURUSD tests stops and fails

Well… the market is still in the testing mode.  The EURUSD headed to the highs, ticked through it at 1.4807 level to 1.4811 and quickly backed off. 

Weak handed intraday traders continue to control the market. 

Forex Trading USDJPY quickly tests support levels

The USDJPY has quickly moved down to the support levels.  The low for the day was 108.78.  yesterday the market got as low at 108.69.  Watching these levels. 

Yen crosses are also getting hit.  The GBPJPY is approaching key support at the 200.00 psychological level.  The pair traded as low as 199.78 earlier on, but bounced.  The next time through the 200.00 level might gather some steam. 

Tonight there is a large number of Japanese data encompassing inflation, production, sales, and growth data.  This may keep the market cautious as data is expected to remain subdued.

Forex Trading. EURUSD bounces off trendline and moving average support

The EURUSD bounced off key support at 1.4730 after the GDP number.  The 100 hour moving average (blue Line) and the trendline up from the lows are both located at that level.  This level is a key level on the downside in the short term.  Other support comes in at the 1.4746 level where the 200 hour moving average are located.

The pair has been above and below a retracement level at the 1.4779 level (retraces the move from the August 22nd high to the recent low on August 26th).  It is positive that the current price is above this level.   Watch this level early on today.  A break of the high today will be positive.

Forex Trading USDJPY has resistance at the 109.56

The USDJPY has resistance at 109.56. The 100 and 200 hour moving averages have converged at the level.  A break above it, swings the sentiment to higher levels for the day.  Remaining below it is bearish. 

Above is strong resistance at the 109.93 level.  Below the 108.80 level is the target.