Given the pattern of going to resistance/support and stopping, the USDJPY is approaching resistance against the 100 hour MA (blue line in chart above) and the 50% retracement of the weeks trading range. Those levels come in at the 79.887 and 79.922 respectively. Look for sellers against the level with stops on a break above on the first test.
The 11 AM ET fixing is approaching and with a narrow trading range in the EURUSD, traders may be looking for push and extension that can break the ties that have bound the pair for the last two trading days. The price has been above and below the 1.24617 target, but has yet to put a serious run to the 1.2434-41 support target – reaching 1.24525 only. The range is a small 54 pips. Is an extension asking for much?
On the upside, a move above the 1.2480 would likely solicit additional buying. On the downside the now famous 1.2434-41 and 1.2409 still remain the levels to get below.
Ok I might be grasping at straws but given the day so far, I am anxious for a move…
The AUDUSD has tested and held the 200 hour MA for the second day in a row. This increases the importance of the MA level going forward. The market traders are paying attention to the level and using it to define risk (sell against with a likely stop above).
In the meantime, the failure to break above keeps the price in between the 100 and 200 hour MA (Trading between the Goal Post as defined by the two MAs). The 100 hour MA (blue line) comes in at the 1.00448 level currently. The price has broken below this line on a few occassions in the London session but has not been able to close below.
When the price is between the Goal Posts it says to me, the market is unsure of the next directional move. Traders can play the range (sell against the 200/buy against the 100), but on a break (whether it be below the 100 hour MA or above the 200 hour MA) I will be looking for momentum in the direction of the move.
REBROADCAST WEBINAR: The Traders Course with Greg Michalowski
TOPIC: “I’ll… never fall in love again. A look at the up and down market and how to trade them”
Yesterday, the EURUSD did “a few laps” up and down during the NY session. The GBPUSD did too. If you were looking for a trend (and I was early on!), that mind thought could have hurt you. If you were able to change your focus from the price action, your day could have been saved. What clues were there to change your focus toward not falling in love but falling in like with the market? I will show you…..
TO WATCH AND LEARN FROM THE REBROADCAST, CLICK ON THE FOLLOWING LINK: