GBP, USD & Commodities Report - Wednesday 22nd January
Good morning all
Trust you are all well…*Watching 15min charts for double tops in EURUSD & CABLE. Wait for move and wait for break either side of resistance and support. The DPs are just below in CABLE and EURUSD and any break of these will signal further weakness today.
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EURUSD – The EUR bounced from 1.2800 to 1.3100 last night. The question today will we continue the downtrend or continue the bounce. Only look for shorts with a break below the 60min 50ma at 1.2950 as this will signal further weakness this morning. Not convinced that the bounce will last long and that the squeeze will be short lived. Watch EURJPY as guidance for EUR.
CABLE – Short squeeze last night from 1.3600 to 1.4000…Looking for further weakness today but again only if GBP breaks below the 60min MA at 1.3880. Look for a move down to the DP at 1.3840 and then if this level is broken, look for a retest of the 1.3600 level. A break above the 1.3975 level would see a pullback to the DR1 at 1.4065. Watch GBPJPY as guidance for GBP.
OIL – Held 4 hr support…. Draw 4hr triangle and wait for break. A break below $41.75 would mean the price of OIL is ready to fall. I will be staying away from this market until the triangle and support level is broken.
EURGBP – The trend is up with GBP in deep trouble. Small channel forming on 15min chart. A break above 0.9375 would see a move to the old highs and a break down from 0.9325 would see a move to the 60min 50ma. I don’t favour the downward move as there is not a huge gap so be very careful here. Trade with the trend as much as possible.
USDCAD – A break below 4hr 20ma at 1.2560 would signal a move to the previous low. Watch the 1.2540 level but if this breaks look for a play down to the DS1 level at 1.2500.
Enjoy… I am excited to see where GBP and EUR head this morning…
Dan
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