Forex News

EurUsd Consolidation is the name of the game for a day or two in anticiption of Friday's Non-Farm Payroll numbers. EUR USD has found resistance at the trend channel at 1.4430 / 45 and somehow picked up support from a one off high back in December 08 at 1.4379. The prior breakout level at 1.4338 still remains as the major support level and 1.4291 just below there but for intraday players there is a nice range between 1.4379 and 1.4430 / 45 that should provide some easy pickings for 50 pips or so until the ADP number this afternoon.

GbpUsd Looking again at the longer term picture it is easy to see why 1.7029 is such a big hurdle to clear and at the same time why it was so easy to get there after clearing 1.6663. There is huge RSI divergence on the daily chart suggesting that the move was completely stop related and the pair looks like it is unlikely to catch a strong bid until it retests the break out level back down at 1.6663. The sweet spot for the medium term bulls is all the way back down at 1.6272 and for the shorts 1.7029 is looking attractive with the short sweet spot at 1.7309 which, as mentioned before, is a 50% retracement of the entire 2 year down move and the last of the 2 year downtrend channels. Intraday traders expected to play yesterdays range between 1.6890 and 1.7005.

UsdJpy The pair is getting a little congested now between the 4 week uptrend and the 2 year downtrend channel. The long entry level highlighted yesterday at 94.44 was followed by a swift move to 95.42, just slightly above the resistance at 95.29 but still not making a new high against the earlier move in the Far East overnight (95.46). Long buying now anticipated at 94.78 but upside remains capped until we break that high from yesterday so expect intraday trading between the two levels, 94.78 and 95.30 / 45.

UsdChf Typical of USD CHF, range bound action is back in play with intraday buyers of the pair (and potentially the SNB) at 1.0578 and the prior breakdown level at 1.0632 still providing good supply, building a short term resistance level. Only a move back above 1.0654 could give the USD bulls any hope of getting back into the old ranges. To the downside a move below yesterdays low at 1.0563 and the 2008 closing low at 1.0556 could be very costly for the SNB and those riding their coat tails but the support is extremely significant. If it does go then the next major level is 1.0325. Intraday, expect 50 or 60 pips rangebound action between 1.0573 and 1.0632

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