The market mood is supposed to be “upbeat”. US stocks are firmer on the back of the US Congress set to put the brakes on the debt ceiling deadline. The Russians pledge to supply more gas to Europe, while China and USA plan for Presidential-level summits.
But FX majors look mixed to me, as markets struggle to define direction.
The charts at the end of this article are H4 charts of a selection of major FX pairs.
The targeted support and resistance levels are in the latest colored boxes on the respective charts.
Each pair would have to cross their respective colored zones to confirm any meaningful change or extension in trend.
The 60MA in the EURUSD chart is still sloping downwards. The euro touched 1.1530 downside target and is bouncing off that support, but does not seem to have impetus to test the 60MA resistance.
Sterling’s 60MA is turning flat from downwards prior, and so is GBPUSD spot. But the pound is already testing the upside target of 1.3650 and has more potential of keeping its gains against the dollar.
USDJPY is turning sideways and about to cross its upward-sloping 60MA. A double top seems to be forming at the same time. The 2nd peak lower than the 1st which may mean the dollar may retrace back to 110.55 support.
The Aussie is flat and so is its 60MA. The support/resistance lines on that chart show the best levels to take just about any position, long or short.
Gold is also flat, with virtually no immediate fundamental issue to drive it.
—
All displayed chart support/resistance lines are either historical levels or actual confirmed order book levels currently being traded by major players based on available market intelligence.
Disclaimer: This content is for educational purposes only. It does not constitute trading or investment advice. Past performance does not indicate future results. Do not invest more than you can afford to lose.
