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Dollar / Yen Short Side Favored Under Sunday Night Low

By , Sr. Technical Strategist
27 February 2012 14:43 GMT

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Afternoon Technicals (all charts)

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Morning Notes:

EURUSD – An extension of the rally that began in January remains favored towards Fibonacci objectives near 13600. This level intersects channels in early March (middle of this week). Price has found bids from former congestion at 13370. 13345 and 13300 are the next potential supports. A break of the latter level would suggest that a top is in.

GBPUSD – “The drop into 15644 may have completed wave B within the A-B-C rally from the January low. Objectives in the coming weeks are 16075 (61.8% extension of wave A), 16165 (10/31/11 high) and 16340 (100% extension). Support is 15780/15820.

Dollar_Yen_Short_Side_Favored_Under_Sunday_Night_Low_body_gbpusd.png, Dollar / Yen Short Side Favored Under Sunday Night Low

Prepared by Jamie Saettele, CMT

AUDUSD – The decline to 10600 may complete the 4th wave decline. Bullish objectives remain the 2011 high at 11080, and common Fibonacci relationships. Wave 5 = 1 at 11153 and wave 5 = 61.8% of waves 1-3 at 11236. These levels intersect the channel on March 5th and March 9th. Keep risk on longs to 10595 as a drop below would probably trigger losses to 10450. Exceeding last night’s high (10715) would put the bull firmly back on track.

NZDUSD – The NZDUSD is in the same position as the AUDUSD. A 4th wave corrective decline is treated as complete as long as price is above 8244 (a drop below exposes 8150). Watch for support at 8310. Exceeding last night’s high (8370) would put the bull firmly back on track.

USDJPY – The USDJPY has reversed sharply following the 5 wave advance from the 2/1 low. Supports to watch in the coming week(s) are 7990, 7935, 7865, and 7830. Play the short side as long as price is below last night’s low (8166). Resistance is 8075.

Dollar_Yen_Short_Side_Favored_Under_Sunday_Night_Low_body_usdjpy.png, Dollar / Yen Short Side Favored Under Sunday Night Low

Prepared by Jamie Saettele, CMT

--- 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.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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27 February 2012 14:43 GMT