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.
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.
Technical Analyst & Trader
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