The week is off and running.
What technical levels are in play for the 3 major currency pairs for today/for the trading week? In this video, I outline and explain where traders should focus not only today, but also as the week progresses.
EURUSD: The EURUSD moved sharply lower last week and culminated with the price testing a key swing area between 1.09419 and 1.0949 also within that area is the 61.8% retracement of the move up from the August 1 low. That level comes in at 1.0944. The low price on Friday reached 1.09506. If the sellers are to take even more control, they need to get and stay below that level this week.
In trading today the price has been absent up and down with the price trading near highs for the day in the early US session. On the topside, the 50% midpoint of that move up from the August 1 low comes in at 1.0995. Just above that is a swing area between 1.1001 and 1.10145 and should be a ceiling on any sort of retracement higher if the sellers are to remain in firm control
USDJPY:The USDJPY moved sharply higher last week and in the process extended above the 38.2% retracement of the move down from it’s July 3 high. That retracement level comes in at 148.116, and in early US trading, the price is breaking below that level. Stay below and there can be further downside probing toward 147.30 area where a ceiling was established from August 20, and early September and early October highs. I would expect that any look toward that level would find support buyers today and going forward.
GBPUSD: The GBPUSD fell below its 38.2% retracement of its move up from the August low at 1.31396 and also answered swing area between 1.3114 and 1.31447. That area will be resistance going forward this week. Stay below keeps the sellers more in control. On the downside, the 50% midpoint of the same move higher comes in at 1.30488.. The high price from July reached 1.30355. A swing high from August 20 comes in at 1.3051. A swing low from September 10 came in at 1.30487. That area between 1.30355 and 1.3051 will be a key support area this week for both buyers and sellers.
This article was written by Greg Michalowski at www.forexlive.com. Source