EUR/USD
Resistance points: 1.2677, 1.2690, 1.2705, 1.2732
Support points: 1.2575, 1.2510
Friday saw a large move down (at least compared to the daily ATR) and prices
bounced up off of lows to close at a support point. While the candle is not
large enough to be a bearish engulfing one it did make a new near-term low
and closed below recent lows. This could indicate a short bias going in to
the G-7 news. Early evening trading looks likely to test near-term resistance
points as shown on this 15 minute chart. The new low is not confirmed by
the MACD.
GBP/USD
Resistance points: 1.8815, 1.8830, 1.8855, 1.8905
Support points: 1.8800, 1.8785, 1.8760, 1.8725 and 1.8600
There are no clear setups that I see for this pair this evening as prices
are between support and resistance points as you can see on the 15 minute
chart below showing the Sunday open. Waiting until there is reaction to
the G-7 summit seems the best to me. Given the current technicals
I would have a slight down bias going in to the news.
USD/JPY
Resistance points: 118.10, 118.90, 119.13 and 119.40
Support points: 117.05, 116.75, 116.40,
116.10
The JPY is trading within a triangle formation with long tail candles indicating
price failure at these points (as shown on the daily chart below). Prices
have failed twice at the test of the 118.10-15 area. The MACD shows weakness
on this latest high so that may give a hint as to which way the prices will
break out this time.
General Remarks
It is my preference not to trade on days where there is a holiday for a country
that is a large part of that market sessions trading. Since there is a holiday
in
is due out during the European session, trading this evening could be very
light. Consolidation in the price activity is normal before expected announcements
and can be used to set ranges for trading later.
Elizabeth McMahon is a forex professional with over 12 years experience in
the financial industry. She has provided extensive services both as a consultant/trainer
as well as a trader in the equities, options, futures, and forex
trading markets. Elizabeth is a senior market analyst at
www.forexyourself.com
, which is a forex introducing
broker specializing in fund management, automated forex trading systems,
and education. You can contact Elizabeth with further questions at beth@forexyourself.com.
