Forex trading: levels to watch this week
Today I’ll run through a range of forex pairs, picking out the key levels that should hold the upside and downside this week according to my chart analysis.
USD/JPY meets first resistance at 113.65/70. This is the main challenge for bulls today (29 March). Traders going short should consider stops above 114.00. A break and close above 114.00 is required to show that bulls can push higher to target March highs at 114.45/55.
Failure to beat first resistance at 113.65/70 is more negative for this week and targets 113.27/22, then 112.98/93. This level could hold the downside this week, but long positions are starting to look risky. A break below 112.80 signals further losses down to support at 112.55/50, and then better support at 112.32/30.
USD/CAD managed a bounce in a bear trend last week but this looks likely to be short-lived as we hold longer-term trendline and 50% Fibonacci resistance. The failure to beat 1.3300 targets 1.3180/70 and then 1.2975. Further losses are likely to re-test March lows at 1.2919 with a break below here certainly not out of the question. However we do have good support from the October 2015 lows and January/March 2015 high at 1.2797/1.2833.
USD/CHF has held important longer-term seven-year trendline support as you can see in the chart below.
However the pair needs a break above important short-term resistance at 9800/9810 to confirm a more positive outlook into April.
EUR/CAD has survived a test of the 100-week moving average at 1.4400 and is holding above the 11-month trendline support as you can see in the chart below.
The pair has made it back above the 200-day moving average at 1.4740 for an additional positive signal. As long as we can continue to hold above 1.4740 we should head higher towards resistance at 1.4960/70.
EUR/AUD has been holding above the 11-month trendline and 61.8% Fibonacci support at 1.4695/85. The pair now needs a break above short-term resistance at 1.4885/90 to signal a recovery towards 1.4990/1.5000 and then 1.5085/90.
USD/NOK is clearly in a short-term bear trend since the start of this year. Important short-term trendline and Fibonacci resistance at 8.5620/30, and more significant longer-term trendline and 100-day moving average resistance at 8.6540/50, are the key levels to watch.
AUD/NZD is running into strong resistance at 1.1350-1.146, from 2015 highs, the upper trendline of the triangle pattern on the weekly chart, longer-term Fibonacci levels and the 200-week moving average. All these levels should hold the upside this week.
Technical Analyst & Trader
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The content of this article is the personal opinion of the author and not Intertrader Direct. The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest. Nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.