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XAUUSD 4 HOUR CHART – HAS THE BUBBLE BURST?
The jury is still out in XAUUSD as the bulls need to keep closes above 2300 to maintain a 2300-2400 range and a pattern where moves outside of it lack follow-through.
As I noted yesterday, bias within this range is tilted down as long as it stays below 2350.
Now it needs to hold 2291 and keep closes above 2300 or risk points lower.
There was a Global-View member. a bank trader working for Japanese bank who gave the JPY a nickname I never forgot. He called the JPY “The Devil “ The reason, as he said was because “the YEN had destroyed more trading careers” than any other currency.
Currency Intervention and Why the JPY is Called : “The Devil”
Currency Intervention and Why the JPY is Called : “The Devil”
EURGP 30 MIN – Now faces resistance
Following up on my earlier post where looming support proved too tough and now EURGBP is facing resistance at the .8561 level cited in that post. So far .8555 resistance is holding, needing to stay above .8545 to keep its bid.
Take note of the two red Amazing Trader (AT) lines highlighted, otherwise known as an AT Directional Indicator, signaling a potential shift in directional risk that played out.
EURGBP 4 HOUR CHART – MONTH END
As I noted, there are often some erratic month-end flows in EURGBP, especially around the 4 PM London fixing.
EURGBP has been under downward pressure (note blue AT lines) to start the week with key supports looming below at .8520 and the key .8484-.8502 lows (not shown on this chart).
USDJPY 1 HOUR CHART – THE DAY AFTER
With the BoJ interventions being digested and verbal threats to act at any time, 24 hurs per day, it is not a surprise to see some caution in this pair.
The BoJ, meanwhile, looks at the same technicals that we do, such as FIBO levels for 160.16-154.49
157.32=50%
157.99 = 61.8%If I was in the BoJ’s shoes I would try to keep USDJPY below 61.8% and 158
On the other side, 155 remains the pivotal level in keeping the downside contained.
EURUSD 1 HOUR CHART – STUCK IN A RANGE?
EURUSD has been stuck so far for a second day within a 1.0674-1.0753 range set last Friday with attention mainly on the JPY after BoJ interventions and verbal threats overnight.
Range so far this week 1.0686-1.0734
As I noted yesterday, it is month end, and while not an exact science the theory says if US stocks are lower on the month there is USD buying to adjust forex hedges. As I said this is not an exact science so just something to keep an eye on.
Also, month end often sees EURGBP erratic swings so watch into the 4 PM London fixing as it can impact EURUSD and GBPUSD.
Otherwise, markets seem to be on hold ahead of the FOMC decision tomorrow.
A PROFESSIONAL TRADER SHARES HIS APPROACH TO TRADING
A Professional Trader’s Strategy for the Retail Forex Trader
A Professional Trader’s Strategy for the Retail Forex Trader
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