EURUSD short 1.2380 correction levels.

EURUSD short 1.2380 correction levels.

EUR/USD OANDA:EURUSD


EURUSD             short 1.2380 correction level. If the exchange rate does not get momentum, this ATR can only make a previous wave size. At this point, the correction level of 1,2380 could be the best entry for an additional downward wave. If our assumption is correct, it is about 1,2125 levels for the downward wave.

EURJPY – 240 – Watch the break outs

EURJPY – 240 – Watch the break outs

EURO / JAPANESE YEN FX_IDC:EURJPY


EUR/JPY             has been trading slightly sideways. On Monday and Tuesday we saw the pair closing the day in the green, but Wednesday’s session had a sharp move towards the 133 area, but closed the daily candle at around 132.100 level. Thursday was marked by continued selling, but it found support at 131.270 area.

On the 4h chart, we can see that the price is being held by this short-term downwards moving trendline that started on the 3rd of February. The potential is still more to the downside and a close of the 4h candle below the 131.270 could indicate that there is some more selling to come in. The RSI is currently at the 41 mark and the MACD is below 0. Both are bearish signs, that could potentially provide us with an indication for today’s direction in EUR/JPY             .

On the upside, if we start seeing a move back above the 131.800 area, then, first, the pair could test the mentioned above downwards moving trendline and if it does not hold, second, a break of it would take the price above the 132 area, which opens the path towards the 133 mark.

USDCAD – 240 – Keeping a close eye on it

USDCAD – 240 – Keeping a close eye on it


This week, USD/CAD             is unstoppable and the direction that it’s moving is only up. It managed to get above the high of around 1.26850 of the previous two weeks, and at the time of this analysis the pair is trading slightly above the 1.27 mark.

The overall trend is still to the upside. This has been running from September 2012 and has not been broken yet. As for today, we can see that USD/CAD             keeps holding on this small upwards moving trendline support, that started last Friday. It has not been broken yet and it kept pushing the price higher throughout the week. A move above the 1.27250 could push the pair up to yesterday’s high of around 1.27550, that could act as the first resistance level . A move further above that opens the way towards the 1.28 area.

If the above mentioned short-term trendline will not hold and the price will break it, then we could see a move back to the 1.26850 area. Below that we have the 21 EMA , which is around the 1.26650 level. A break below that area could push USD/CAD             towards the 50 EMA , which is around the 1.26200 mark.