The sharp USD drop on Monday makes me neutral at best for now. I had wanted to see USDOLLAR hold the median line from the multiyear structure in order to stay constructive (see below). That said, DXY has reached VWAP from the January low and USDOLLAR has reached the 3/18 low. The 61.8% retrace for USDOLLAR is slightly lower at 11705. Keep an eye on these levels for possible support.
Euro futures are also into 2021 VWAP and VWAP from the January high. This is nothing more than a simple observation and recognition that the current level is possible resistance. Lows from December and January are just above near 1.2060 as well (see below).
Cable rocketed higher today. The move was unexpected from my vantage point. That said, price is into a well-defined zone for possible resistance. The zone is defined by the median line from the Schiff fork that originates at the March 2020 low, the underside of the trendline from that same low, the 61.8% retrace of the decline from the 2/24 high, and highs from late February / early March. The top of the zone is 1.4022. I’m on reversal alert into that level.
USDJPY took out support from March today and the drop consists of 2 equal waves. Still, ‘better’ resistance looks like the 38.2% retrace at 107.77. This level is reinforced by trendline support as well. Eventual resistance is probably 109.75-110.00.
Recall that GBPJPY turned sharply down from just under long term resistance earlier this month (see longer term chart below). The drop appears impulsive so I lean towards price forming a lower high. The best spot for that lower high is 151.63/85. This is daily reversal resistance and the 61.8% retrace of the drop.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.