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Post-Brexit forex trading levels for this week

GBP/USD holding above 1.3330 allows a recovery to 1.3370/80 and then minor resistance at Tuesday’s high of 1.3410/20, but strong resistance at 1.3440/50 is the main challenge for bulls at this stage. I suggest that traders going short of GBP/USD should place stops above 1.3480.

A break higher could see 1.3450/40 work as support to target very strong resistance at 1.3565/75. This could provide another short-trading opportunity with stops placed above the gap at 1.3615. Below 1.3300 is more negative and targets 1.3260/50. A move below 1.3230 then keeps the pressure on for 1.3190/80, perhaps as far as the 1.3125/18 low.
EUR/USD is holding strong resistance at 1.1110/20 as I write and testing support at 1.1035/25. Long positions here would need stops below 1.1000 but further losses target minor support at 1.0970/65 and then 1.0935/30 before last week’s low at 1.0909. A break below 1.0900 is obviously negative and targets 1.0880, 1.0850/40 and then the March lows at 1.0825/20.

Strong resistance at 1.1110/20 has been working so far this week but short positions here would need stops above 1.1150. A break higher is a buy signal seeing 1.1120/10 act as strong support to target 1.1170/75, perhaps as far as strong resistance at 1.1230/40. This could be an opportunity for short trades here with stops above 1.1270. An unexpected break higher targets 1.1360/70.
AUD/USD held good support at 7340/30 on Tuesday as we look for 7390/95 and then first resistance at 7415/20, but stronger resistance at 7445/55 is the main challenge for bulls this week. Traders going short would need stops above 7480. A break higher targets less important resistance at 7515/25 and perhaps as far as 7572/75, then 7590/95. Short positions look risky anywhere above 7525 and, if we continue higher, look for 7620/25 and then a re-test of last week’s high at 7643/48.

There is good support at 7340/30 again today but a move below here re-tests last week’s low at 7302 with more important longer-term support and two-week lows at 7285/80. This is the best chance of a low for the week, which could offer an opportunity for long positions with stops below 7250.
USD/JPY is holding above 102.00 and could test resistance at 102.94/99 as we become overbought in the short term. Short positions would need stops above 103.20 but a break higher sees 102.99/95 working as support to target 103.55/59 and perhaps as far as strong resistance at 103.70/75 for profit-taking on any long positions. This could also be a short-trading opportunity with stops above 104.10.
usdjpy 29_6
Failure to beat first resistance at 102.94/99 is likely and targets 102.50/45, perhaps as far as strong support at 102.05/00. Long positions here would need stops below 101.70. A break lower sees 101.95/102.00 working as resistance to target 101.45/40 for profit-taking on short positions. If we continue lower look for a test of support at 101.10/101.00.
Jason Sen
Technical Analyst & Trader
For more information, trading education and offers visit InterTrader Direct
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.

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