FOMC minutes were today and the ECB version is tomorrow. Price is just pips from the noted 1.1770 level (remember that’s a possible bounce level). Price is currently at VWAP from the 2020 low, which was support for the March low. Bottom line, EURUSD is into a zone that could lead to a strong bounce. If reversal evidence arises, then I’ll let you know and look to take action.
Crude put in a massive reversal today. I love the ‘top on news (OPEC)’ dynamic, especially from this major price zone. Recall that this is the trendline from 2008 and a well-defined horizontal zone (see weekly chart below). I am bearish crude at this level.
EURUSD is in the exact opposite position as DXY. That is, the line that extends off of the September and March lows intersects the median line from the fork that originates at the January high. That intersection is about 1.1770. A break below there would be extremely bearish. The red parallel (25 line) is now resistance. That line is currently about 1.1950 about 6 pips per day.
NZDUSD went slightly through the median line (red line) but that line remains proposed resistance near .7020. Downside focus is the long held .6800 level (2 equal legs are at .6795).
Crude has reached the line that extends off of the 2008, 2013, and 2014 highs. HUGE LEVEL! Price reversed sharply lower today (outside bearish day in fact) and I think it’s worth taking a bearish stance against the high.
USDCAD nailed support and reversed higher today. Time to be bullish again! Ironically, less words are required when the market adheres to one’s analytical method. ‘Feel the flow’…it’s working. Upside focus is open for now.
BTCUSD reversed higher today from the year open price of 29007. The reversal was accompanied by high volume (J Spike Volume). This is the second such signal since 2018 (note the December 2018 signal which is circled). Given the reversal from the month open, I’m bullish against today’s low. 42000-44000 is proposed resistance again.
GBPUSD turned up prior to the proposed 1.3740 but 1.4000 remains in line for resistance. Besides being ‘clean’ horizontal resistance, the level is also defined by the 25 line of the Schiff fork from the March 2020 low. This line was support in December and April…so watch for support to turn into resistance.
It was pure risk-off in FX today as Yen was the only major that strengthened against the USD. I ‘like’ downside in Yen crosses generally, especially given the volume reversal today (see futures chart below…bullish Yen reversals since 2014 are highlighted). Price action from the April low takes the form of a wedge. The lower wedge barrier is about 109.50. The high volume level from FOMC is now proposed resistance at 110.50.