Daily Chart analysis EUR/USD

Monday, January 19, 2009

Looking at the Daily FX EUR/USD chart, this pair closed the week at an interesting level: almost precisely at the 0.618 retracement level for the move from the 1.2335 low to the 1.4700+ recent high. That 1.4700 recent high, in turn was a 0.618 retracement from the 1.6000+ high to the 1.2335 low, so there seems to be a focus on the Fibo levels here. As well, last week saw the pair finding support ahead of the round 1.3000 level, a break of which will be the key focus if we are to resume the downtrend. The 200-week moving average may also be a focus and comes in around 1.3375 at present.

Forex Broker trading houses comments on FX markets:

· EURUSD: 1.3385 overnight high first resistance. Eventually headed lower. First support 1.3240

· EURJPY: Rally was a short squeeze, looking for weakness in days ahead. Sell for 119.60 target.

· USDJPY: Sell for 90.00 test again with stops above 91.00. Will follow equity direction

· GBPUSD: Technicals muddled. Key resistance at 1.5000, Could rally if breaks. Support 1.4780.

· USDCAD: Looking for renewed rally with tomorrow’s BoC on tap. Buy dips for new 1.3000 attempt.


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