Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
EURUSD put in a significant reversal at the end of last week.
Shorts became trapped below 1.1260, and as soon as the level was reclaimed, the euro took off to new monthly highs.
These traps have become a theme for the EURUSD in 2019.
It’s why I keep cautioning readers about trading the EURUSD during this choppy and somewhat unpredictable price action.
For now, a return to the 1.1260 area will likely attract buyers while a test of the 1.1410 area is likely to encounter selling pressure.
But again, be careful trading EURUSD while the pair is below its year-to-date high.
The GBPUSD looks ready to reverse this week.
Last week’s bounce from 1.2500 appears to be more than just a relief rally.
That’s especially true when you view the weekly time frame here.
Last week’s retest of 1.2500 is actually the bottom of an 850 pip range that has been in place since July of last year.
However, buyers need to clear the 1.2760 resistance area in order to force a retest of the 1.3000 handle.
As long as the 1.2500 area is intact as support, the GBPUSD stands a good chance of rallying from its lows.
On June 12th we looked at USDJPY. More specifically, we were watching to see how the 108.70 region would hold up as new resistance.
As you can see from the chart below, sellers have defended that area for the last two weeks.
The next key level on our radar was 107.60. This is the January 3rd flash crash close, which is a big deal as we’ve witnessed on other yen pairs.
Thursday’s sub 107.60 close meant the area was likely to attract sellers.
The new resistance level defended well on Friday, and will likely continue to serve as resistance next week.
As for key support on the way down, the year-to-date low at 105.60 is one to watch.
However, due to the volatility on January 3rd, the exact low may differ depending on your broker.
But a look back at the price action from early last year shows that 105.60 is indeed a support level to keep an eye on as we move forward.
Only a daily close back above 107.60 would negate my bearish outlook here.
CADJPY buyers hit a wall last week after their 200 pip rally in early June.
The 81.80 area attracted sellers between the 10th and 11th and did so again on Thursday.
The June 20th bearish rejection candle suggests that we could see further weakness in the short term.
Furthermore, the bullish reversals from several of the Canadian dollar crosses hints at a lower CADJPY.
That said, the pair needs to stay below 81.80 if sellers are going to further the downtrend that began in March.
Any retest of the 80.00 handle will likely encounter buyers with a daily close below that exposing the 78.70 area.
WTI bulls are on the move again after the June retest of the 50.70 support area.
I’ve had that level on my chart for months now, and as you can see, buyers stepped in at 50.70 on June 5th.
Thursday’s break above 55.40 means that any retest of this area will likely encounter an influx of buying pressure.
At the other end, buyers need to clear resistance at 58.00 to expose the 60.30 area.
You can see where WTI struggled some on Friday to breach the 58.00 handle.
But given the aggressiveness of last week’s rally, I have to favor buying dips here as long as the market stays above 55.40 on a daily closing basis.