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GBPUSD approaching support at 1.5451

There is a couple of reasons for support at the 1.5451 level. One is the trendline off the lows on the hourly chart and the second is the 200 day MA at the same level off the daily chart.  A break will target the lows from last week and the 1.5321 level (see chart below).  Look for buyers against the level.  When there are a couple reasons for a level (1.5451) to be of importance and the reasons are from different charts it provides a better level to trade against.

USDCAD moves toward the 100 hour MA resistance at 1.0569

GBPUSD breaks below support and extends the daily range. 1.5451 key support

Barack Obama to Speak at 12:30

Barack Obama to comment on the Economy at 12:30PM.

EURUSD between the Goal Posts…Looking for a break

When the EURUSD trades above the 100 hour MA, it gives the pair a bullish bias. When the price trades above the 200 hour MA, it confirms the bullish bias. When the price fails to stay above the 200 hour MA and moves back below that moving average, longs should be exited as the market is saying, “I am not ready to trend higher”.

This is the situation for the EURUSD today. The price gapped above the 200 hour MA in early trade, then came down to test the 200 hour MA as momentum faded (green line in the chart below). The price moved below the 200 hour MA line.  At this point, longs should liquidated as the failure to trend higher is a disappointment for traders.  When this happens, the market often looks to test the 100 hour MA on the downside – it is simply disappointed. 

 Today, that is what happened.  On the test back below, buyers reemerged against the 100 hour MA and the 50% retracement level.  Note the market could not register a close below the 100 hour MA line and a modest buying rally ensued.   

The correction took the price up to the 1.2715 level.  Where resistance from the 100 day MA (blue line in daily chart) kept a lid on the rally.  The price momentum faded and the price has rotated back down in quiet trading. 

When the price is “Trading Between the Goal Posts”  it is a signal that the market is unsure of the directional move. Typically, a move below the 100 hour MA (blue line) or above the 200 hour MA should lead to a trend  move away.  So watch the key MA levels and look for momentum on a break.

GBPUSD moves below 200 hour MA in quiet UK holiday trade

Forex Morning Report- August 30th

Forex Morning Report- August 30th