Who said high oil Prices weren’t good for us.

A story carried by the Associated Press shows one of the benefits of high oil prices. Be sure, the dollar sees it differently. Right now the dollar is benefiting from slacking oil prices and the mornings comments from Fed Officials. The reality side of the coin though is corporate profits are stained red. This begs the question, can talking overcome the fist.

EUR/USD

With the break below the month and a half old uptrend line, the way has been opened for a move to the July 7^th low of 1.5610. The only problem is that corporate earnings are scheduled out through Friday and so far there has been little good news. Oil and earnings are battling it out for the hearts and minds of traders. First major stop on the way down should be 1.5763 area.

GBP/USD

The pair has room to get to the uptrend line that comes in today at 1.9812. A break below the previous two days lows at 1.9905/06 respectively will be required to push the pair off this ledge and on to the 1.9800 area. As of writing, 1.9902 had been reached.

USDJPY

Now that the pair has broken above the short term down trend line the high from 6/25 at 108.41 is in focus. However a reversal signal just appeared on my 15 minute charts and a stall around 107.62 could be in the offing.  Hourly’s are overbought and price may consolidate above the down trend line and work off the overbought indicators before heading on.

USD/CHF

The break back above the 38.2% retracement line first opens up 1.0351 high from 7/09 and then 1.0500 area from late last month. Hourly’s are over bought and the daily Resistance line is at 1.0317 and price has pierced 1.0333 but closes below Resistance 1 better than 60% of the time, especial with 154 points between them.

All Wrapped Up

With the combination of strong moves to support and resistance points this morning, we could see decent size pull backs before there is any clear direction is established.  If you’re looking to trade long term wait for confirmation of these moves. Those that are trading short term; this is your call to action. These charts were prepared using Forexecutor’s Intellicharts. You can get them by contacting Cody or Jake at Trading Intl.

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