Forex pairs to observe
European countries Vs. JPY
Eur.Jpy, Chf.Jpy and Gbp.Jpy all made new highs today. Eur.Jpy and Chf.Jpy finally broke out of the sideways channel today and are currently retracing. Eur.Jpy is heading towards 103.00-103.20 area to retest the back side of the channel, if support holds look for a bounce up before considering going long. Chf.Jpy is also currently moving south to retest the back of the channel around 85.30 area. If this area holds anticipate a further move north. Support at the back of the channel is important for both pairs, if they don’t find support than we can see both pairs continue south towards the bottom of the channels. If support holds however, the fib target for Eur.Jpy is at 104.96 and 86.93 for Chf.Jpy. Gbp.Jpy is leading this trio and made impressive gains today. I anticipate this pair to find support around 123.50-124.00 before continue further north. The fib target of the subswing is at 126.13 so proceed with caution after this point.
Aud.Usd and Nzd.Usd
Both pairs are currently stuck in a sideways channel. Overall these pairs are both leaning towards the bearish side; we can observe bear crowns on the 4H timeframes. Aud.Usd is trading between 1.0773 and 1.0640 or about a 130 pip channel. It is currently near the top of the channel pointing downwards. So if the bulls don’t break out of the channel we can anticipate this pair drop further towards the bottom of the channel. Nzd.Usd shows a similar picture, it made a new low and took out support earlier on the day. At the moment this pair is racing to meet its left tip around 0.8379, if this area of resistance holds expects a further move south.
An impressive rally by the cable today it managed to take out a few previous highs on its bullish momentum. It looks like the retracement on the higher timeframes is coming to a halt and this pair is ready to continue its rally north. The pair is currently retracing at the moment and has the ability to find support around 1.5750-1.5800 area. I wouldn’t be surprised seeing this pair retrace very little and continue its aggressive move with the bulls. The next level of some resistance is around 1.5860 so proceed with caution around there. The fib target of the subswing is 1.5916. Do proceed with caution trading this pair, both the GBP and USD have fundamentals coming out tomorrow.