20th May 2014
EURUSD
Summary
Monday EURUSD traded most of the day marginally higher as the price action tested the highs of the previous 3 day range.
Market overview
The recent price action and the breach of the 1.3764 level being the swing low of the 30th April has changed the daily trend to down. However the weekly price action continues trend in an upward direction. The recent rejection of lower prices at the 1.3672 support level being the swing low of the 4th April and bounce off the 34 period weekly moving averages has opened up the possibility for a move back up to the averages.
However that the price action is now trading at the 8 period daily moving averages draws our attention is drawn to a potential negative rotation at an area of resistance.
Focus on today
This morning EURUSD has opened quietley as the price action trades within Monday’s candle range.
I am this morning monitoring the price actions for a potential test of the 8 period daily moving averages.
Alternatively if EURUSD fails to sustain higher prices there is a possibility we see a retest of 1.3764 level being the swing low.
GBPUSD
Summary
Monday GBPUSD experienced a quiet day with the price action confined within the averages.
Market overview
GBPUSD continues to trade in a daily and weekly uptrend with the price action having recently broken a large converging triangle. The 8 period daily moving averages had been offering good support to this up move. However the recent price action has seen GBPUSD break under this average and now test trend line support.
From a weekly perspective the price action is now testing the 8 period weekly moving averages. As the both daily and weekly trends remain positive I am monitoring the price action at this potential value area where longs can be added.
Focus on today
This morning GBPUSD has opened quietly as the price action trades within Monday’s candle range.
I am today monitoring the price action for a test of the 8 period moving averages.
Alternatively if GBPUSD cannot sustain higher prices could see the price action back to the 1.6795 support level.
USDJPY
Summary
Monday USDJPY spiked lower as the price action tested the 101.00 level. However by the close of business USJPY had paired most of its losses.
Market overview
Yesterday’s breach of the 101.32 level being the swing low of the 11th April has effectively changed the daily trend to down. However the weekly trend continues to trade within an uptrend. I am now monitoring the price action for signs of a continuation under the 101.32. A failure to sustain a move beneath this level would put forward the possibility that the move beneath the 101.32 level was a fake break down which could lead to further a resumption of the prior uptrend.
Focus on today
This morning USDJPY has opened quietly as the price action trades within Monday’s candle ranges.
Today I am monitoring USDJPY for a test of the 101.00 level.
Alternatively a failure to sustain lower prices could see USDJPY trade back to the 101.70 level.
USDCHF
Summary
Monday USDCHF experienced a quiet day as the price action traded within Thursday’s range.
Market overview
The recent price action and the breach of the 0.8862 level being the 22nd April prior swing high has changed the daily trend to up. However the weekly price action continues trend in a downward direction. USDCHF is now moving into the direction of Fibonacci resistance. This Fibonacci zone could possibly be viewed as a value area where shorts could potentially be added.
Focus on today
This morning USDCHF has opened quietly as it trades within Monday’s candle ranges.
Today I am monitoring the price action to see if USDCHF can potentially trade higher and retest Fibonacci resistance.
Alternatively a failure to sustain higher prices could see USDCHF trade back down to the averages.
Gold
Summary
Monday Gold experienced a quiet day as the price action traded around the averages.
Market overview
The breach of the 1277 level being the 1st April low has technically changed the daily trend to down. This puts the daily trend in gear with the weekly down trend. A breach of the 1270.00 support level would confirm the daily down trend.
However the recent price action has seen a rejection of the 1270 support level and a move above the 1306 level being the swing high of the 28th April.
Focus on today
This morning Gold has open quietly as it trades within Monday’s candle ranges.
Today I am monitoring the price action for Gold to test the 1310.00 resistance level.
Alternatively a failure to sustain higher prices could see Gold trade back up to the 1270.00 support level.
USDCAD
Summary
Monday USDCAD traded higher as the price action traded back up to the averages.
Market overview
USDCAD is trading in a weekly uptrend however the daily trend has recently changed to negative. The breach of the 1.0857 level being the daily swing low of the 9th April will open up the possibility for a further move lower down to the 1.0790 support level.
More recently USDCAD has corrected back to the 8 period daily moving averages which could possibly be viewed as a value area to add shorts.
Focus on today
This morning USDCAD has opened positivley as the price action trades above Monday’s candle range.
I am this morning monitoring the price action for a potential move into the direction of the 1.0790 support level.
Alternatively if the price action fails to sustain lower prices there is a possibility that USDCAD retests the downward sloping trend line.
AUDUSD
Summary
Monday AUDUSD traded lower as the price action tested the 34 period daily moving averages.
Market overview
AUDUSD has been trading in a daily uptrend following the breach of the 0.9080 level being the swing high of the 18th February. However the weekly chart continues to trade in a down trend with the price action now correcting lower following a rejection of the Fibonacci resistance area.
Furthermore this morning we have witnessed a break beneath the averages and trend line support. The opens up a possibility of a lower high forming which adds further weight to the short side.
Focus on today
This morning AUDUSD has opened negatively as the price trades under the averages and trend line support.
I am this morning monitoring the price action for a potential sustained move under trend line support.
Alternatively if AUDUSD fails to sustain lower prices there is a possibility that AUDUSD trades back up to the broken trend line.
Oil
Summary
Monday Oil traded traded higher as the price action moved into the direction of the 103 resistance level. However by the closed of business Oil had lost the majority of its gains.
Market overview
Oil continues to trade in a daily uptrend following the breach of the 100.72 level being the swing high of the 24th December. The daily and weekly times both have a positive bias.
The recent price action has seen a strong bounce off the 98.00 and 100.00 support level.
Focus on today
This morning Oil has opened positively as the price action within Monday’s candle range.
Today I am monitoring the price action for a test of the 103.00 resistance level.
Alternatively a failure to sustain higher prices could see Oil trade back down to the 100.00 price levels.