Market Update 7/27 – European FX Levels Pre-FOMC

Market Update 7/27 – European FX Levels Pre-FOMC

Focus remains higher for EURUSD following today’s hold. In fact, price pulled back to noted support and immediately turned higher. FOMC is tomorrow. The only reason I mention that is because of the potential for increased volatility. Even if you told me what Powell would say tomorrow, it wouldn’t matter. Only the reaction matters! Bottom line, price has held support (for now at least) so I’m looking higher towards the well-defined 1.1950/90 zone.

Market Update 7/26 – EURUSD Ready to Rip?

Market Update 7/26 – EURUSD Ready to Rip?

EURUSD has been churning near lows for weeks, putting in divergence with RSI on both the daily and 4 hour time frames. The break above the line from the 6/25 high warrants a long position. Watch for 1.1780 support. General focus is the center line and 25 line within the channel from the February high near 1.1930 and 1.2070 (also the 61.8% retrace).

Market Update 7/21 – USDOLLAR Reacts at Resistance

Market Update 7/21 – USDOLLAR Reacts at Resistance

USDOLLAR put in a key reversal today after hitting parallel resistance from the pitchfork that originates at the 2017 high. I’m not sure that there is a better example of median line symmetry. Over the last 10 months, highs and lows have registered on parallels equidistant from the median line. With the specter of 5 waves up from the May low, I lean towards USD weakness from the current level.

Market Update 7/15 – Bullish Euro/Commodity FX

Market Update 7/15 – Bullish Euro/Commodity FX

DXY and USDOLLAR remain in flux (one more push higher as per the 4th wave interpretation?…see yesterday’s post) but EURUSD action from the low is constructive. Price rallied in 5 waves and declined in 3 waves therefore I lean towards the long side against 1.1772. Also, don’t forget that Euro futures are holding VWAP from the March low (see below).

Market Update 7/12 – USD Correcting Lower

Market Update 7/12 – USD Correcting Lower

EURUSD held VWAP from the 2020 low (again) so near term focus is higher towards the center line of the channel from the January high, which is about 1.1935. Importantly, notice that the 75 line provided support therefore the 25 line is proposed resistance if reached (as per median line symmetry). The 25 line intersects the 61.8% retrace of the decline from the May high at 1.2081. Watch for support near 1.1825.