Past Performance
Please note: Past performance is not a guarantee of future results. Technical analysis is only a tool for trading and even targeted analysis is no guarantee of profits.
Forex Trading: USDCAD stays between the goal posts
The USDCAD is ending the week after trading between the 100 and 200 hour moving average for most of the day. The fundamental economic news may have been negative for the pair this morning (with GDP down 0.7% for the month), but the pair had already done its rallying for the day prior to the release (CAD down, dollar up). When the buyers did not push the pair higher, the low was the favored direction. Selling pushed the pair to the 100 hour moving average where the buyers reemerged.
So the week will end with the pair in between support and resistance awaiting the action next week. The break direction (above the 200 hour moving average or below the 100 hour MA) will dictate the probable direction for the pair.
Forex Trading: GBPJPY comes down to test support and bounces
The GBPJPY came back down to test support at the 129.32 level (reached a low of 129.44) and has bounced back higher. This is a positive development as the weekend approaches and should attract additional buying against the support level.
Forex Trading: USDJPY moving higher. Kick up the GBPJPY higher
As per previous post the USDJPY is moving higher, breaking above the 90.00 level and trendline resistance This has helped the GBPJPY higher to the 130.50 high – above the 129.32 resistance area. A close above these levels will be positive for the USDJPY and the GBPJPY.
Forex Trading: GBPUSD approaches resistance at 1.4469
The GBPUSD is back approaching resistance at the 1.4469 level. This was low levels from January 13th to January 15th. A break should target higher levels.
Forex Trading: Meanwhile EURUSD moving to new lows on the day as EURGBP falls sharply
The EURUSD is moving sharply lower as EURGBP also gets high hard. The EURGBP is approaching the double bottom lows set on January 9th and January 16th. The lows on those days came in at 0.8835 and 0.8840. This level should provide initial support for the pair and may slow the EURUSD decline in the process. A break below the 0.8835 level, however, should solicit addition selling in both pairs. A break in the EURGBP would target 0.8746 area.
Forex Trading: Another Failure in the GBPJPY
The GBPJPY has moved back below the 129.32 level after squeezing higher once again. The failure is the 3rd failed attempt in a row. This should lead to further selling as buyers are disappointed and sellers join in. UGH!!!!
It is my opinion that the GBPJPY needs help from the USDJPY to move higher. The fundamental news out of Japan warrants a move higher. The problem is the fundamentals point to a lower dollar as well. Until that time the USDJPY joins in the GBPJPY party (to the upside), the GBPJPY will not find the trend like momemtum for a sustained run higher. Watch USDJPY.
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