This week's look at the euro, dollar and yen crosses
GBP/USD is seeing a strong recovery on expectations of a rate rise. If we hold above 1.3210/60 we can hit the next target of 1.3260/65. We could even reach quite strong resistance at 1.3300/10. This is the main challenge for bulls today.
Bulls require a break above the two-week high of 1.3336 to remain in control, targeting 1.3390/1.3400 and 1.3415. We see good support at 1.3225/15, but long positions need stops below 1.3180.
GBP/JPY hit all its targets as far as 151.15/25 and continues higher to 151.38. Holding above 150.40/30 keeps bulls in control. A move above 151.40 targets 151.58/62, then 152.25/30, before the September high at 152.82/86.
The first support at 150.40/30 could hold the downside but long positions need stops below 150.00. A break lower, however, targets 149.70/65.
USD/CAD has broken strong resistance at 1.2720/30 and the August high at 1.2778. Holding above here targets 1.2855/60 and then 1.2880/85, perhaps as far as 1.2938/43.
A move below 1.2770 risks a slide to what should now be strong support at 1.2730/20 today.
EUR/JPY is re-testing the September 134.38/41 high and the most important resistance of the week. Holding here is a double-top sell signal in overbought conditions. A sustained break higher, however, is a buy signal.
You could try short positions with stops above 134.60. But you must be ready to buy into longs on a sustained break higher, initially targeting 135.10/15.
If we turn lower look for 134.14/10, then minor support at 133.85/80. Below this we target better support at 133.45/40 but long positions are risky. On further losses look for 133.09/05, then a buying opportunity at 132.90/80, with stops below 132.50.
NZD/USD has broken two-year trendline support at 6960/50 for a sell signal targeting 6885/80, 6860 (now hit and we bottomed exactly here as I write) and the 2017 low at 6820/16. The pair is becoming oversold so the downside may be more limited.
Long positions are too risky without a buy signal in oversold conditions. However, if we see a recovery look for 6893, 6914 and the resistance at 6937/41. Short positions need stops above 6960.
Technical Analyst & Trader
For more information, trading education and offers visit InterTrader
The content of this article is the personal opinion of the author and not InterTrader. You should under no circumstances consider the information and comments provided as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.