Forex Blog - Currency Trading Online

USDCAD Back Below Key Support

Written by Administrator

Friday, 26 June 2009 12:09

USD Continues Its Slide, Is Oblivion Next?

Has there just been too much damage to the Buck in the last couple of months for it to regain any of its previous lusters? One thing is for sure, any gain it makes will be immediately challenged strongly as traders abandon it for more risk and higher returns elsewhere. Most of today's damage is being done by the EUR, GBP, JPY and CHF, with the CAD pulling up from behind. I wouldn't be too surprised to see a late afternoon buy of the dollar as people try and unwind any positions they took and couldn't get to profit on today. The DJIA is holding its own, but if it can't convincingly break into positive territory, there may also be a heavy, late afternoon, sell off just before the close.

EURGBP Prepping For Break From Tightening Coil

The one week old coil on this pair is really primmed for action. THe EUR has caught a bid tone over the last few days as the Dollar strength waned a bit, but the Pound has held it's own.If today closes around currenct levels or above .8486 but below it's open, an importat inside day occurs though it isn't placed very well/. I would prefer to see it right at the top or bottom of a move. I would like to see amove back above .8900 for a clusire on candle I show still open, but they may not happen for some time. In the meantime I'll look for trade opportunities on a break in either direction.

GBPJPY Failre at 158.00 Reinforces Head and Shoulders/Short Term Resistance

It's nice to see that price failed at 158.00 Overnight. This is beginning to validate the head and shoulders formation as well as the short term resistace line from daily highs on 06/19 and yesterday. It is so appearant that traders are highly indecisive, the proof is in the candle. THe last three days candles have closed no further form their opening than 21 points while the average Range for the last three days has been 251 points. Very interesting indeed. The last couple of times we saw this kind of price action, it preceeded significant moves in price. See the days leading up to 04/20/09, 12/01/08 and 09/28/08 to compare just a few of the many.

EURJPY Initial Target 133.00 Then 131.50

I have a sort position now targeting 133.00 and 131.50 in extension. My stop is above the first rejection high from 06/19 at 135.20

EURJPY Produces Another Sound 135.00 Rejection

Although the day is far from over, another rejection at 135.00 is putting the top side in jepoardy. Overall I am short the pair, looking for a push to 125.00/124.00, a long way off. I will be watching this pair closely over the next few days for signs that sellers are getting tired of fighting. I am expecting the lower line to be tested early next week and it currently lies around 132.36. ALso on the hourly charts I will be watching to see if price is staying below a line drawn from the 06/24 and 06/25 lows.

USDCAD Back Below Key Support

As mentioned yesterday, the pair did not stay above the support seen in the last few days. 1.1450 is coming up next as price is sure to fall back to the area it broke away from earlier in the week. Of course I got interrupted this morning before I got a chance to send this one out and price did hit 1.1450, but I expected 1.1400 to come under fire and the Bounce we saw in early NY trade has kind of put the brakes on that. However, the day and week is far from over and I won't be surprised to see a move back to 1.1450 and below as traders try and make sense of price action lately. One thing is for sure. After the big moves over the last few weeks we are headed into a time of Consolidation on most pairs.