In the kickstart video for August 6, I take a look at the three major currency pairs from a technical perspective – the EURUSD, USDJPY and GBPUSD.
- EURUSD: The EURUSD stalled the run higher yesterday within key swing area above and below the 1.100 natural resistance level. The subsequent move to the downside has now broken below a swing area between 1.0942 and 1.0948, another swing area between 1.0915 and 1.0922. Within that last swing area is the 38.2% retracement of the move up from last week’s low. That level comes in at 1.0919 and represents close resistance.
- USDJPY: The USDJPY moved to a low yesterday of 141.68. That got within 69 pips of the closing level from 2023 at 140.99. Not a bad move given the high for 2024 reached 161.943 on July 4 (it’s now early August so only a month ago). The correction to the upside stalled within a swing area at 145.89 and 146.514.
- GBPUSD:The GBPUSD did not have the fireworks of the EURUSD and USDJPY yesterday. The supportswing level near 1.2710 held at the low. The 200 bar moving average on the 4- hour chart held resistance at 1.2807. In trading today, the price has trended through downside and in the process moved below the 1.2710 swing area. It also will blow his 100 day moving to 1.2683 and tested the 50% midpoint of the move up from the April low to the July high at 1.26713. Those are two key support levels and so far have held. In addition to those levels, the 200 day moving averages below at 1.26467 and when added to the 50% and the 100 day moving average give traders a cluster of key technical levels. That period between 1.26467 and 1.2683 is key for both buyers and sellers going forward. Move below is more bearish. Stay above and a rotation higher would be expected .
This article was written by Greg Michalowski at www.forexlive.com.
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