Euro / Canadian Dollar
DailyCandles
Prepared by Jamie Saettele, CMT
The EURCAD is preparing for a test of recent highs as price consolidates above its 200 day average following the plunge last Friday. Potential resistance is defined by the June-August trendline and bulls should keep risk to 13782. A break through the July low of 14380 would shift focus to the January 2010 low at 14667.
Euro / British Pound
Weekly Bars
Prepared by Jamie Saettele, CMT
The EURGBP has been a choppy mess since the July top. However, a larger trend may be developing as a nearly year and a half trendline is being put to the test for the 3rd time in 8 weeks. Those that wish to jump the gun should keep stops to 8830. Short term resistance comes in at 8668. A clear break would shift focus to 8283 and the 2010 low at 8066.
Euro / Australian Dollar
Daily Bars
Prepared by Jamie Saettele, CMT
The EURAUD recorded a key reversal on Tuesday, which is even more significant when one takes into account the tendency for trends to reverse at the beginning of the month. Notice too that the range has tightened since the start of 2011. If the range continues to tighten, then the EURAUD will probably be near the mid 13600s in a few weeks. 13220 is short term support.
Euro / Japanese Yen
Daily Bars
Prepared by Jamie Saettele, CMT
Yen intervention early in the week led to the EURJPY spiking through the resistance line that extends off of the April and July highs. The advance reversed just shy of the late August highs. Expect the market to spend some time in the 10800-10650 range. Despite the false break (intervention), upside potential should be respected as long as price is above 10470.
British Pound / Japanese Yen
Daily Bars
Prepared by Jamie Saettele, CMT
Yen intervention early in the week led to the GBPJPY breaking above its trendline that extends off of the April and August highs. The break does signal the potential for a sustained reversal. Watch former resistance at 12260 as well as the line that extends off of the October lows for support.
Australian Dollar / Japanese Yen
Daily Bars
Prepared by Jamie Saettele, CMT
The AUDJPY pattern makes the strongest argument for a larger reversal (but maybe not until weakness into the h&s parallel or 7680). A multi month and potentially powerful inverse head and shoulders pattern may be forming from the August low (similar to AUDUSD). Expectations over the next few weeks are for the right shoulder to form, which sets the stage for lower prices on balance into 7650-7760. 8210 is short term resistance.
Canadian Dollar / Japanese Yen
Daily Bars
Prepared by Jamie Saettele, CMT
The CADJPY rally from the October low is most similar to the EURJPY. The rally consists of 3 waves and failed near the highs from August and September. A tight range has developed between 7635 and 7750. A pop above 7750 would encounter resistance from 7790 and weakness below 7635 should find support at the confluence of the 20 day average and trendline that extends off of the October lows.
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter @JamieSaettele
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Jamie is the author of Sentiment in the Forex Market.
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