Talking Points- USD/JPY struggles below key Fibo
- GBP/USD meanders below minor retracement
- EUR/USD fails again at key moving average
Foreign Exchange Price & Time at a Glance
Chart Prepared by Kristian Kerr
- USD/JPY continues to consolidate below the 124.70 78.6% retracement of the June/July range
- Our near-term trend bias is higher in the exchange rate while above 123.00
- A daily close above 124.70 is needed to re-instill upside mometum into the exchange rate
- A minor turn window is seen here
- A close back below 123.00 would turn us negative again USD/JPY
USD/JPY Strategy: Like the long side while above 123.00
Instrument |
Support 2 |
Support 1 |
Spot |
Resistance 1 |
Resistance 2 |
USD/JPY |
*123.00 |
123.60 |
124.00 |
124.40 |
*124.70 |
Chart Prepared by Kristian Kerr
- GBP/USD has settled into a range below the 61.8% retracement of the June/July decline at 1.5700
- Our near-term trend bias is negative while below 1.5700
- Weakness under 1.5470 is needed to trigger another leg lower in the pound
- A minor turn window is eyed here
- A daily close above 1.5700 would turn us positive on GBP/USD
GBP/USD Strategy: Like short side while below 1.5700
Instrument |
Support 2 |
Support 1 |
Spot |
Resistance 1 |
Resistance 2 |
GBP/USD |
*1.5470 |
1.5565 |
1.5580 |
*1.5700 |
1.5820 |
EUR/USD has settled into a fairly tight range to start the week as it awaits some important releases in a few days. Last week’s double failure at the 50-day moving average near 1.1100 keeps the exchange rate in a fairly clear negative technical position ahead of this event risk. The 1.0800 area remains a critical pivot zone as a close below there would confirm a resumption of the broader downtrend and set into motion a more important decline. However, the contraction in range over the past few months does make us wonder if the market is setting up a bear trap. The potential inverse head and shoulders pattern on the daily (price action since July) doesn’t help things either, but only a move through 1.1130 would start to turn things more clearly positive for the euro.
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com