Kickstart your forex trading on October 16 with a technical look at the technicals driving the EURUSD, USDJPY and GBPUSD.
EURUSD: The EURUSD is trading higher today and in the process is moving closer to a swing area between 1.0551 and 1.0557. Also in that area is it a 200-hour moving average at 1.0555 . Above that level comes the 100-hour moving average and a 38.2% retracement which are both at 1.05709. If the price were to get above those levels, the buyers would shift more to the upside. On the downside, the low price from Friday moved into a swing area between 1.0483 and 1.0500. That 17 PIP area will continue to be a key support and bias-defining area for both buyers and sellers. On Friday it held. If it is retested will hold again?
USDJPY: The USDJPY is trading up and down in a fairly narrow trading range today and around a swing area between 149.47 and 149.54. The up-and-down trading is indicative of a market that is unsure of which way he wants to go. On the top side, the high price from Thursday and Friday stalled near 149.85. The 150.00 level remains a key technical target. Recall from October 3, the price moved to and through that level of 150.154 before reversing sharply to the downside (on concerns about Bank of Japan intervention) and testing the September 21 low near 147.32 (before snapping back higher). On the downside, the 100-hour moving average near 149.26 and the 200-hour moving average near 149.07 are the next targets to get to and through to increase the bearish bias. On the topside getting through the highs from Thursday and Friday would have traders looking toward that dreaded 150.00 level.
GBPUSD: The GBPUSD – like the EURUSD – is higher on the day and is trying to stay above a swing area at 1.2159 – 1.21673. On the topside, the 200-hour moving average comes in at 1.2208. It’s a 100-hour moving average and 38.2% retracement of the move down from the September 11 high, which comes in at 1.2232. Getting above those moving averages is required to increase the bullish bias this week. On downside, a move below 1.21594, and a rotation down toward the low from Friday (at 1.2122) and a swing area near 1.2105 – 1.2111 would be targeted.
This article was written by Greg Michalowski at www.forexlive.com. Source