Forex Investment and Currency Trading

EURUSD has met the short term target at 1.4968 which has provided resistance. While the overall trend may be up the pair is consolidating for now. A break of 1.4968 would be a bullish development that would then suggest a test of 1.5285.

We have seen a significant break on Crude which should at least test $85 in the short term. In other markets relative GBP strength in the short term looks likely.

Fixed Income, Commodities and Foreign Exchange – EURUSD short term target met. The pair is consolidating for now within the wider uptrend. A major bullish break has taken place on Crude.

EURUSD: The 1.4968 resistance level from November 2007 was a short term target that has now been met. The overall trend is still up and a breach of 1.4968 would open the way for 1.5285. In the short term the pair may consolidate further.

Crude: Major bullish development taken place on crude with the weekly close above the 200 week moving average. Further gains are expected here and the short term double bottom suggest a test of $85. Beyond that a test of the channel top at $90+ cannot be ruled out.

GBPUSD: Bullish daily and weekly reversals posted at the recent lows just above the support level at 1.5724. A breach of 1.6460 would be an additional bullish development which would open the way for 1.6742 in the short term.

EURGBP: Bearish weekly reversal posted at the trend high though the support area around 0.9082-14 (horizontal supports and channel base) is still in place. This is the short term pivot and a close below there would lead to question the bullish stance that has been in place.

GBPG10: Posted a bullish weekly reversal pattern at the trend lows last week suggesting a short term bounce ahead.

EURJPY: The rise in German 10 year yield should be an indication of a higher EURJPY in the short term. The pair continues to test 135.50 and a close above there (especially if we breach the trend resistance on German 10 year yields) would be a bullish development suggesting a test of this year’s highs again at 139+.

AUDJPY: Rallied through the 82.00 level traders have been focusing on. AUDJPY needs to get through the trend across the highs this week which could open the way for the 200 week moving average. A failure however would be a concerning development according to the weekly momentum which is beginning to show divergence.

EURNOK: 200 week moving average target met. This also converged with the long term 76.4% Fibonacci retracement and we are likely to go through a period of consolidation in the short term. Increased caution could be warranted here.