Good morning traders, its been a long time since I posted an fx review so here we go….
Ahhhh I remember the days when everyone’s second word in fx trading was parity….now what? EURUSD has been riding the bullish channel for quite some time with very clear signs of a bullish trend without any disruptive noise.
There are some divergence signs providing a warning. Important trend change level is at 1.1725. Breaking below it will confirm trend change. For now there is no signal of a trend reversal in process.
Having broken a medium-term trend line resistance to the downside, price has bounced to back test the broken trend line.
Price has also reached the 38% Fibonacci retracement resistance. I do not feel like the upside correction is over. However I believe the highs in GBPUSD are not going to be broken for a long time. I believe these highs are long-term ones. This bounce is very important as I believe it will produce a great selling opportunity.
The bounce in USDCAD is shallow and not complete according to my view. I believe we will see a double bottom formation and a bounce towards the 38% Fibonacci retracement. The decline in Oil prices should support this bounce I’m expecting.
USDJPY has broken below 108.80-109 support and combined with the cloud rejection we expect price to move at least towards 107.50.
Has reached 50% Fibonacci retracement and is back testing the broken trend line. Has the potential to bounce strongly from current levels but there is no reversal sign yet.
Cloud support held and successfully back tested. Time for more upside towards 0.80-0.81