The week is off and running.
What technical levels are there for the three major currency pairs for this trading day/week? In this video, I outline and explain where traders should focus not only today, but also as the week progresses.
Euro against the US dollar: EURUSD fell sharply last week, culminating in the price testing a major swing zone between 1.09419 and 1.0949, and within that zone there is a 61.8% retracement of the upward move from the August 1 low. This level comes at 1.0944. The low price on Friday reached 1.09506. If sellers want to take more control, they must reach and stay below this level this week.
During today’s trading, the price was absent up and down with the price trading near its highs for the day at the beginning of the US session. On the upside, the 50% midpoint of this move up from the August 1 low comes in at 1.0995. Just above that is a swing zone between 1.1001 and 1.10145 which should be a ceiling for any type of bounce higher if sellers want to remain firmly in control.
USD/JPYUSDJPY rose sharply last week and in the process extended above the 38.2% retracement of the downward move from the high hit on July 3. This correction level comes at 148.116, and at the beginning of American trading, the price broke below this level. Staying below that there could be further downside towards the 147.30 area where the ceiling was set as of August 20th, early September and early October. I expect that any look towards this level will find supportive buyers today and in the future.
British pound against the US dollar: GBPUSD fell below its 38.2% retracement of its upward move from the August low of 1.31396 and also responded to the swing zone between 1.3114 and 1.31447. This area will be resistance during this week. Staying down keeps sellers in greater control. On the downside, the 50% midpoint of the same upward move comes at 1.30488. The high price since July reached 1.30355. The highest price since August 20 comes at 1.3051. The lowest swing level since September 10 came at 1.30487. This area between 1.30355 and 1.3051 will be a major support area this week For both buyers and sellers.