Majors & Cross rates
| 06 February 2012
EURO
After touching a higher at 1.3220 on 1.22 the EURUSD has had difficulty penetrating and serves as the initial resistance for now. A corrective move lower to 1.3025 from the past week have manage to hold its support while directional movements whipped-saw from the high-low to close at 1.3145 for the week ending the 3rd of Feb.The resiliency of the Euro is really supported by the EU leaders working real hard for a deal other than Germany's A Merkel meeting with China for some assistance.
Although, a fundamentally bias news would justify that the EURUSD may have some legs technically speaking to move higher well above its initial resistance.Extensions is within a trading range of 1.3360 21Wk-MA and at 1.3480-1.3550 areas for the EURUSD. UPDATE: The current low as of Feb 06 is at 1.3025 which happens to be a technical double bottom price from the previous price dated the 1st of February as of this writing. It is at the 1.3110 recovery price.
GBPUSD
The GBPUSD first resistance levels have been marked at 1.5882 high with a low at 1.5705 support while closing for the week at 1.5815 well within its trading range. A spill over of contrary sentiments by bull players would likewise show in the opening trading days of next week. Update: As of Feb. 06 the GBPUSD is at 1.5815 from a 1.5728 low for the trading session in the North American session.
However, even with a daily up/down swings for the pairs would give way for the true direction near term trend to move higher. A word of price and behavioral comparisons would be that there is a current price imbalance and discrepancy between the European pairs vs. the USD. Likewise causing an irregular market movements of price swings which can also been seen with the EURGBP cross rate. Until all three pairs are re-aligned with their corresponding objectives then such divergences in the Moving averages would be realized. Some due diligence is necessary to establish your trade decisions.
GBPJPY
On
the Technical perspective; the GBPJPY started of with the GBPUSD initial price reversal; at 117.53 low; with a higher bottom at 119.55 serving as a good support, likewise a double bottom price level within a rising channel. The GBPJPY is a 2nd cross rate currency pair that has a very good market potential which has been shadowing the GBPUSD on its 1st leg of a price reversal. While breaking its trendline resistance and its current working price of 121.15 is above the 21WK-MA of 120.85 as shown of this candle chart of the GBPJPY on a Daily formation. The MACD is now on a positive tone after the movement while the cross awaits some follow through from the GBPUSD. Its initial attempt to its previous high of 121.85 may find some temporary resistance unless a USDJPY recovery would out-pace the GBPUSD on the way up. A market behavior of the GBPUSD correlation with the Japanese Yen vs. the USDX would be the primary focus for the coming weeks ahead.
EURJPY
The EURJPY candle configuration is quite interesting then pior to today's upward direction as fueled by the surge on the EURUSD, due to reports that there may already be a more likely deal addressing the Greek debt crisis. The technical perspective signaling a positive tone was the recovery on the EURUSD and simultaneously a move higher with the USDJPY.
A move for the USDJPY higher is a lost in Yen value. The break from a triangle formation came at 100.60/85 that followed through at current price of 101.99 from a rising equidistant channel application. Closing prices above these levels would still provide a positive tone thereafter with a further corrective daily moves on both directions giving a false reversal scenario. A pause and consolidation after a dramatice move is likewise considered which would cause some traders to reluctantly create trade positions. A word of caution, never try to catch a rapid market movement as pullbacks would cause to trigger stoploss due to wide price fluctuation.
