After the recent volatility, oil has settled down enough for us to consider taking positions without being knocked around. Red lines are 23.8 and 38.2 fibs of the big down move, whose peak was 61.9. Ignoring fundamentals, bias is still negative from a pure technical standpoint, so we prefer breaks to the downside. Our move is to play the range, being more...
- GBP/EUR price action continues to diverge.
- 0.7150 represents key support level, break below signals further EUR weakness.
- Wednesday 12 May big day for this pair, Euro GDP and Bank of England Inflation reports, expect big moves.
- 0.7000 handle is next major support
Although CADJPY is in a rising channel, it will need to cross a resistance area which it failed to break many times before. If it does manage to break above 100.00 we could see a big rally. Positive data from Canada today might give the push that's needed. Set SL at 97,4.
- Breakout above 1.0310 signals a possible trend reversal although long term trend is still very bearish
- Getting long is riskier but has a higher reward, could be a nice long term trend to ride
- Stops at 1.031, like what’s happening to EUR/USD, a return to this level could be a shorter term range play
- A break above 1.0535 confirms bullish bias and strength...
EUR/USD Has been plummeting for the last 12 months, stopping at a 13-year low around 1.0500.
Just this month the pair rallied 350 pips breaking through the 1.1000 resistance and seems to now be stuck below the minor 1.1250 handle. With ECB's QE plan and high expectations for US economy, the outlook was bearish, however a breach above 1.1300 might indicate a trend reversal.
