Forex - Technicals and News for Monday 24th August
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Forex News and Events:
Chart of the day - USDCHF Daily
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Today's Key Issues (time in GMT):
14:30 CAD Canadian Retail Sales - MoM Concensus: 2.0 Previous: 1.2
14:30 CAD Canadian Retail Sales - YoY Concensus: 0 Previous: -4.9
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The Risk Today:
EurUsd Taking a look at the big picture on EUR USD this morning, we can see that although the pair has broken the 3 week downtrend, the bulls still have significant resistance at 1.4338 to contend with and unless it clears the level we will be looking at a nice head and shoulders in development. Only a clearance of 1.4445 really confirms a continuation of the uptrend and would be printing a 9 month high in the process. For the short term expect rangebound action between 1.4338 and 1.4240, even as low as 1.4178 in order to build a base after last weeks break out.
GbpUsd The pair is continuing to consolidate with problems breaking 1.6587 to the upside and 1.6435 to the downside. 1.6381 still looks like a good entry for the medium term longs but for now exepct continued consolidation with 1.6663 as a major inflexion point. Failure below 1.6272 targets 1.5947
UsdJpy Unfortunately the long sweet spot at 93.00 never got touched as the pair went on a rally on the US open on Friday. The USD bulls have taken the pair through the 2 week downtrend that we have been looking at and is now looking to break through 94.80 /90 to keep the momentum going. There is every chance that the pair will come back to test its breakout at 94.45 which will provide a good long entry for those who were patiently waiting for the 93.00 area. Long term the trend is down with short and medium term up.
UsdChf Last week, we looked at the multi month descending triangle pattern and it is now very important to pay attention to the short term strength or weakness. The horizontal support of the triangle at 1.0556 has been tested once more and if the SNB claim they are sitting on the sidelines then someone else has replaced them as the pair has rallied off the support for nice straight positive hours since the Asian open. Intraday reistance just in front at 1.0632 and thereafter 1.0692.
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Resistance and Support:
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EURUSD |
GBPUSD |
USDJPY |
USDCHF |
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1.4445 |
1.6665 |
97.50 |
1.0740 |
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1.4380 |
1.6620 |
96.60 |
1.0692 |
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1.4338 |
1.6550 |
95.40 |
1.0632 |
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1.4307 |
1.6458 |
94.80 |
1.0622 |
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1.4240 |
1.6435 |
93.85 |
1.0556 |
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1.4180 |
1.6380 |
93.00 |
1.0452 |
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1.4035 |
1.6272 |
92.15 |
1.0340 |
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S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot |
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