We looked at the AUDJPY on Thursday of last week. At the time the pair was trading just below the 85.35 handle, a level that’s served as a pivot since the new year began. The idea was to watch for a sell signal from new resistance. However, Thursday closed at 85.51, which canceled out any notion of shorting the cross. I wasn’t interested in buying the pair on the...
For the better part of March, the EURUSD looked relatively bullish, particularly the March 27th close above the 1.0825 handle. The level dates back to 1999 and was responsible for the February 2nd bearish pin bar earlier this year. Moreover, 1.0825 is the 38.2% Fibonacci retracement when measuring from the 2016 high at 1.1615 to the current 2017 low at...
This past Monday I commented on how I was looking to sell the AUDUSD below 0.7608. At the time the pair was trading at 0.7618 following the bearish engulfing pattern from March 21st. I received a few emails in support of this idea. However, the majority of those who responded were against selling the AUDUSD. And as I look around, that appears to be the...
Two days ago I mentioned how the EURUSD bulls had given up the 1.0825 handle. This level intersects with channel support from the March 9th low, so the break was no doubt a significant development. A little more than 24 hours later and it seems the pair has now given up yet another key level at 1.0712. This area has played a critical role in directing price...
We discussed the AUDJPY exactly one week ago. At the time the pair had just broken support at 85.35 and looked determined to test the next key support at 83.73. With this in mind, we were watching for a selling opportunity on a rotation back to new resistance. Unfortunately, that retest never came. But the pair did reach a low of 83.81 this past Tuesday, just 8...
EURUSD bulls have lost the 1.0825 handle. It started with yesterday’s close at 1.0812 and continued with today’s high of 1.0825 which was met immediately by selling pressure. The 1.0825 area is one I mentioned over the weekend. It’s a level that dates back to 1999 and was also responsible for the February 2nd bearish pin bar earlier this year. That sell signal...
Yesterday I mentioned the 0.7040/5 area on the NZDUSD. The idea was to watch for a session close (5 pm EST) below the area to confirm it’s holding as resistance. After jockeying back and forth for several hours, sellers made a final push that gave us a 0.7041 close. This is enough to keep the bearish pressure intact for now. For those still searching for a...
The AUDUSD has been all over the place in the last few months. First, we had the massive 600 pip plunge between early November and mid-December. Then came the 580 pip rebound which was even more aggressive than the decline. However, since the February high at 0.7740, the pair has been trading in a 250 pip range. And despite the impressive March 15th rally...
Exactly one week ago the NZDUSD closed the day back above the 0.7040/5 area. The break came after the March 15th rally fell short of overcoming the region and the pair subsequently sold off on March 16th. However, last Tuesday’s session appears to have closed back below 0.7040/5. This suggests that the Monday break above the area was a false move. Furthermore,...
Apart from Monday’s session, the AUDUSD lost ground every day last week. It started with Tuesday’s bearish engulfing day and ended with a slight loss on Friday after a test of 0.7608 support. A quick study of the weekly chart shows what appears to be a twelve-month wedge pattern. The structure began developing after the 2,600 pip landslide that took place between...
The EURUSD has enjoyed four positive weeks in a row since catching a bid at 1.0500. The pair continued its slow and steady rally last week with a Tuesday bounce from the 1.0712 support area. However, sellers have yet to achieve a daily close above the 1.0825 handle. This is a level that dates all the way back to 1999, so a break here isn’t likely to come...
The AUDJPY appears to have broken a key support level. The 85.35 handle has been a critical factor for the pair since the start of 2017 and yesterday’s close at 85.32 should continue to attract selling pressure. But as you may well know, what we sometimes think are precise levels are instead areas of support or resistance. So yesterday’s close being just 3 pips...
Just yesterday we were discussing the potential for the British pound to continue to advance against the greenback. And given yesterday’s close, that still seems likely so long as 1.2410 holds up as new support. But the pair’s counterpart, the GBPJPY, hasn’t fared nearly as well over the past 24 hours. Yesterday’s plunge in equities has triggered a flight to...
The Australian dollar has been one of the more resilient currencies against the greenback so far in 2017. Between January 1st and February 23rd the pair gained an impressive 550 pips. I went short at 0.7730 on the February 23rd retest of resistance and also added to the position using the bearish pin bar that formed on March 7th. All in all, it was a good trade,...
The GBPUSD has broken the confluence of resistance at 1.2410/20 on an intraday basis. We discussed this area over the weekend as one that could give way to higher prices if broken. I also mentioned last week’s bullish engulfing candle, which is the reason I ignored yesterday’s bearish rejection from the 1.2410 handle. It’s a good thing I did as the trade would...
Over the weekend I mentioned that we could get a range break opportunity from the NZDUSD this week. At the time the pair was trading between 0.6970 support and 0.7040/5 resistance. Given the technical landscape of the past few months, I was favoring a break to the upside. Yesterday’s close at 0.7052 appears to have given us that upside break. As such, any bullish...
The NZDUSD could offer a range break opportunity this week. Despite gaining 125 pips following a more dovish than expected Fed, the pair fell short of overtaking the 0.7040 handle. Buyers also just barely missed out on a weekly bullish engulfing pattern. But despite the near miss, the rally that started on Wednesday may not be done just yet. In fact, given the...
On Friday the CADJPY broke below the 84.60 handle. This level supported the pair on December 5th of last year but had more recently attracted buyers on February 28th and March 9th. Today’s high of 84.61 illustrates a retest of this area as new resistance. And last week’s breakdown suggests that we could see prices continue to slide lower over the next few...