Forex Automoney

The GBPUSD has continued it’s track to the downside and looks to test the low for the day and the low from Friday at 1.6054 and 1.6051 respectively.  A break of the level continues to confirm the bearishness of the pair since breaking through the 100 day MA and the 1.6158 level which was a key low for the pair for most of the summer months. 

On the downside the 200 day moving average remains the target.  That level comes in at the 1.6000 level today.  I would expect profit taking buyers against the level. However, longer term, a move down to 1.5689 can not be ruled out as long as the price remains below the 1.6158 level and the intermediate and shorter term technicals remain bearish.  This level is the 38.2% retracement of the move up from the  January 2009 low of 1.3502.

written by admin \\ tags: Break, Downside, Gbpusd, Lows, Moving Average, Retracement, Target, Technicals

The comments by BOJ Shirakawa (see prior post) has the USDJPY moving back to the upside.  The key level on the upside is the 91.01 level which is the 100 day MA. The USDJPY has been below the 100 day moving average (blue line in the chart above) since August 11th.  A move above this level should solicit additional buying interest for the pair.  Note the pair has additional resistance at the 91.15 level where the 38.2% retracement is found.  A move above here should confirm the upside momentum for the pair.

Watch for support at the 90.66 level.  IF this level can hold, it would be positive for the pair.

written by admin \\ tags: Boj, Momentum, Moving Average, Resistance, Retracement, Usdjpy

The Canada Retail Sales rose by 0.8% for October and by 0.2% Ex Autos.  This was on the back of a 1.1% gain last month and +0.9% in August.  The three month.  Retail Sales have now risen in 5 of the last 6 months and 8th gain in the last 10 months.

The USDCAD has suffered today on a softer dollar and the failure of the USDCAD to maintain the price above the 100 day moving average. Last week, the USDCAD closed for the first time above the 100 day moving average on Thursday. However, on Friday, the price closed below the level.

Today, the price moved back above the 100 day moving average briefly at 1.0683, but failed once again (see red area in the chart below). The move back below the key longer term level intensified selling in the pair and the momentum pushed the price to the downside.

The price is stalling near trendline support at 1.0560.  Additional support comes in at the 1.0535 level which is the 61.8% retracement of the move up from the December 1st low.  I would expect buyers at the level. with stops below..

On the topside, look for resistance at the 1.0601 level where the 38.2% retracement of the days reange is found.

written by admin \\ tags: 10 Months, Briefly, Canada, Downside, Failure, Momentum, Moving Average, Resistance, Retail Sales, Retracement, Rose, Usdcad

The price has continued to move higher and higher, now surpassing the 89.73 target from earlier posts today.  The price has retraced more than 38.2% of the move lower from the September 21st high to the low reached this week on Wednesday at the 88.00 level.  On the sell off to the low, the price moved through channel support on the daily chart at the 88.20 area, but bounced back sharply from that fall.  Yesterday, the downside was tested one last time, with the price touching the trendline support line at 88.16.  The close for the day was still down.

Today however, with signs of recovery, Gold coming off, oil coming off, the dollar has moved higher and the USDJPY has been the big beneficiary. The price has moved through the 100 hour MA. It has moved through the 200 hour MA at the 89.30 level, and now has surpassed the 38.2% retracement.  at 89.73.   The weeks high came on Monday at 89.97.  The high today has reached 89.87.  A move through the high would be the last accolade for the pair today. However, with the big gains today, it is likely sellers/profit takers will book the gains and we will see what the weekend brings. 

What is certain is the move lower this week and test of the channel trendline has led to an impressive bounce. I would expect that there is more room to the upside as long as the price can remain above the 89.35 level (200 hour MA).  with the next topside target coming in at 90.26.

written by admin \\ tags: Accolade, Beneficiary, Bounce, Dollar, Downside, Gold, Last Time, Led, Profit Takers, Retracement, Signs, Target, Usdjpy

The EURUSD broke through the 100 hour MA  at the 1.4719 level (moved up from 1.4716) and the rout to the downside was on.  The price is trading at the low now and should now find upside resistance at the 1.4700 level and the 100 hour MA at 1.4719.  The target to the downside now becomes the 200 hour MA at the 1.4654 level.  With the 50% retracement support just below that level at 1.4649 also providing some support.

written by admin \\ tags: Downside, Eurusd, London, Resistance, Retracement, Rout, Target

The EURUSD is testing the 1.4716 /19 support target. This is where the 100 hour MA (1.4716) and the December 2008 high price which has been a magnet for the pair.  A move below these levels,  next targets the 1.4688 level  for the pair (38.2% retracement in the chart above) .  Look for profit takers against the level 1.4716 level, but sellers should be against the 1.4735 on a corrective move higher.   So watch for a shallow correction. Alternatively a break below the 1.4716 level should solicit additional selling pressure on the pair.

written by admin \\ tags: Break, Eurusd, Level 1, Magnet, Profit Takers, Retracement, Target, Targets

The USDJPY has moved back higher after correcting in London. The pair is looking to test the 100 bar MA on the 5 minute chart at the 89.06 level.  There is additional resistance from a floor earlier today at the 89.10. Look for sellers against the levels.  However, a move above these levels should solicit additional buying interest.   

The next target on the upside comes in at 89.30 here the 200 hour MA is located. The high for the day spiked up at 89.41. This was the first move above the 200 hour MA since it broke lower at 91.18 on the 25th of September. 

The move above the 200 hour MA was quickly reversed this morning.  Look for sellers against this level again. A break, looks toward the 89.73 level which is the 38.2% retracement of the move down from the September 21st high to the low on October 7th.

written by admin \\ tags: Break, First Move, London, Minute Chart, Resistance, Retracement, Target, Usdjpy