Marshall Gittler
Trading Analysis
EUR/USD
EUR/USD moved lower and managed to break below the 1.3512 level (yesterday’s support), confirming the weakness provided by our oscillators in yesterday’s analysis. Currently the pair is testing the 20-period moving average and a cross below it should indicate the continuation of the pullback towards the blue uptrend line or further down to the critical level of 1.3400 (S1). However, I still consider the rate moving in an uptrend since it is trading above the uptrend line and the moving averages still hold a bullish cross.
Support is found at the well tested level of 1.3400 (S1), followed by 1.3321 (S2) and 1.3232 (S3)
Resistance levels are the level of 1.3512 (R1), followed by 1.3564 (R2) and 1.3706 (R3). The latter two are found from the daily chart.
USD/JPY
USD/JPY found resistance near the 61.8% Fibonacci retracement level of the 11th-18th Sept. wave and moved lower breaking below the 99.15 level (today’s resistance). At the time of writing the pair is testing the blue uptrend line and if the bears manage to drive the price below it and break the support of 98.52 (S1), we should concern for trend reversal signals. Both the RSI and MACD oscillators are moving downwards, increasing the odds for further downward movement.
Support levels are at 98.53 (S1), followed by 97.87 (S2) and 97.00 (S3).
Resistance is identified at 99.15 (R1), followed by 99.66 (R2) and the psychological round number of 100.00 (R3).
EUR/GBP
EUR/GBP moved lower yesterday, after finding resistance at the 0.8462 (R2) level and slipped below the support level of 0.8422 (today’s resistance). During the European morning though, bulls regained some momentum, not letting the rate form a low lower than the previous one. If they continue moving the pair to the upside and break once more above the 0.8422 (R1), I expect the correcting phase I mentioned in previous comments to continue.
Support levels are identified at 0.8355 (S1), 0.8324 (S2) and 0.8270 (S3) respectively. The latter two are found from the daily chart.
Resistance is found at the levels of 0.8422 (R1), followed by 0.8462 (R2) and 0.8504 (R3).
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