– In this webinar, we used price action to analyze major currency pairs, with specific focus on EUR/USD after today’s bullish breakout.
– EUR/USD finally posed a break-above the 1.1000 psychological level, and there’s been a minimum of pullback in the move, making the prospect of chasing even more dangerous. But we looked at potential ‘higher low’ support levels at 1.1000 and 1.0933 for re-entry prospects; and there’s a much more short-term, aggressive re-entry level available at 1.1040-1.1050.
– We then moved over to GBP/USD, which is also showing some element of bullish potential. Price action broke above the 1.2750 area of resistance almost a month ago after Theresa May’s surprise announcement of early general elections in the U.K., and since then we’ve seen a few different instances of support showing above 1.2750; and this could open the door to bullish continuation plays.
– We then looked at USD/JPY, which is finally seeing some pullback from its recent bullish ramp. We looked at three different levels to watch for re-entry into the bullish move; specifically eyeing the big zone of support from 111.61-112.40 for risk levels on re-entry approaches.
– USD/CAD is currently seeing support at a very interesting area of 1.3575. This lines up with the double-top formation from November/December of last year; and this prior resistance becoming new support could open the door for bullish continuation plays. This level is also the 50% retracement of the prior major move, taking the January 2016 top down to the May 2016 low; and this just adds more interest behind this current zone of potential support.
– One of the more attractive long-USD setups at the moment is the short-side of AUD/USD. The longer-term range is still at play here, but near-term price action is still a bit far away from resistance points at .7455-.7500 to open the door for bearish plays. Should resistance show in or around this zone, the area around .7200 could become an attractive target for short positions.
– We then looked at Gold, which is currently in the midst of a rather consistent bullish channel. We had discussed that channel yesterday in the article, Gold Prices Build Bullish Chanel, Test Deeper Resistance.
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May 17, 2017 at 12:02AM
from Forex News by DailyFX