Kickstart the trading day:Technical analysis unveils opportunities in top currency pairs

The battles continue in the three major currency pairs: the EURUSD, USDJPY and GBPUSD. In the morning kickstart video for December 6, I look at those major currency pairs from a technical perspective and outline the key support and resistance levels, defining targets and the bias for each.

EURUSD: The major take away from the EURUSD technicals is there is a cluster of support including the 100-day moving average, the broken 38.2% retracement on the daily chart of 1.0764, the 50% midpoint of the last trend move higher from the November low at 1.0766, and a swing area between 1.07650 and 1.07816. That support held in the price has moved marginally higher. Getting above 1.0800 after looking toward the 200-day moving average at 1.0824

USDJPY: For the USDJPY, it fell down to test the 38.2% retracement of the move up from the July load to the November high. That level came in at 146.304, and although the price moved below that retracement target on Monday, it was quickly moved higher to retest its 100-day moving average. The price briefly moved above them moving average yesterday afternoon. Today in the European session, the price also moved above that key moving average (currently at 147.401) but once again it was rejected. The price has moved lower in early US trading and currently trades at 147.14. Ultimately if the buyers are to take control, it needs to get above the 100-day moving average. Absent that in the sellers are in charge.

GBPUSD: The GBPUSD price moved down and through its 50% point the range sent July at 1.2588 yesterday, but momentum cannot be sustained. In trading today the price tried again to break below the little but once again failed. Sellers are having difficulty keeping the momentum going to the downside. On the topside, there is a swing area between 1.2588 and 1.2602. Earlier today, the price moved above that area but ran out of steam near 1.2614. If the price is able to get above 1.2602, would it kickstart more upside momentum? That is what traders will be eyeing. Move back below would likely lead to more selling with a swing area between 1.2558 and 1.25679 as the next downside target.

This article was written by Greg Michalowski at Source