Mr. Fibonacci (whose real name is Leonardo Pisano Bigollo) has been holding many currency pairs from further drops all by himself. It turns out although his dad called him Bigollo (which means good-for-nothing) he actually is pretty awesome. Here is Fibonacci Retracement trading strategy for British Pound, Aussie Dollar and Swiss Franc major pairs.
A lot of traders are chasing after Mr. British Pound this week with 7 top tier economic events out of the UK so we’re obviously going to start today’s technical analysis with GBP/USD who started a rebound above the 50% Fibonacci level after making us pips on its down moves.
To give a a brief overview on the pair’s dancing moves, Mr. British Pound and Ms. USA were are a general up-trend since Jun 2013 which continued until June 2014, and that is when as predicted by myself, the market topped out and we saw a drops towards the 50% Fibonacci level. If you have graduated our education program, you probably know that more often than not this level is pretty important and could be a make-or-break level for GBP/USD. By the end of this week and after the Scottish Independence Vote on Thursday we could probably figure out if the 50% Fibonacci level will hold the GBP/USD price from further drops or not. So, as far as long-term traders are concerned, stay tuned!!
AUD/USD saw huge declines last week with 5 super strong bearish candlesticks forming on the daily chart, falling all the way down to the 61% Fibonacci Level at 0.8981. A break below this level would open doors for more drops towards 0.8830 and 0.8659 in extension. But If Mr. Fibo holds, we could see a rebound towards previous top at 0.9385.
USD/CHF also reached and surpassed our target of 0.9249 is now consolidating around the 61% Fibo level as well, and you know what that means… A break above this level would open doors to more gains for Ms. USA versus Swiss Franc towards 0.9450.We could see more gains towards 0.9450.
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Intraday Forex Technical Levels
EUR/USD 4-hour: Consolidating.
Invest Diva Likes: Short positions below 1.2947 with targets at 1.2874 and 1.2818 in extension.
If Pair Goes Nuts: Above 1.2947 look for further upside towards 1.3020 and 1.3142.
What’s up on the Forex Dance Floor: The pair is on an overall downtrend but is now consolidating between the levels at 1.2947 and 1.2874, teasing the lower boundary of Ichimoku’s cloud. The RSI remains around the neutrality area.
Supports and Resistances
1.3142
1.3020
1.2947 Pivot Point
1.2874
1.2818
USD/JPY 4-hour: Testing the resistance level at 107.36.
Invest Diva Likes: Long positions above 107.36 with targets at 107.50 and 108 in extension.
If Pair Goes Nuts: Below 106.9 look for further downside towards 106.72 and 106.34.
What’s up on the Forex Dance Floor: The pair is on an overall uptrend but is now consolidating between the resistance level at 107.36 which was a previous support from back in November 2007 and 106.90 above the Ichimoku’s cloud. The RSI is above the neutrality zone.
Supports and Resistances
107.50
107.36
106.9 Pivot point
106.72
106.34
USD/CAD 4-hour: Rebounding.
Invest Diva Likes: Long positions above 1.1034 with targets at 1.1094 and 1.1157 in extension.
If Pair Goes Nuts: Below 1.1034 look for further downside towards 1.0997 and 1.0967.
What’s up on the Forex Dance Floor: The pair moved up and rebounded from 1.10940 above the Ichimoku’s could. It is now teasing the 76% Fibonacci level at 1.1034 with the RSI slightly above the neutrality area.
Supports and Resistances
1.1157
1.1094
1.1034 Pivot point
1.0997
1.0967
Intraday Commodities Technical Levels
Dow Jones Intraday: the downside prevails.
Invest Diva Likes: Short positions below 16990 with targets at 16840 and 16810 in extension.
Alternative scenario: Above 16990 look for further upside with 17050 and 17070 as targets.
Gold Intraday: rebound expected.
Invest Diva Likes: Long positions above 1225 with targets at 1250 and 1257 in extension.
Alternative scenario: Below 1225 look for further downside with 1215 and 1207 as targets.
Crude Oil Intraday: bullish bias above 90.4.
Invest Diva Likes: Long positions above 90.4 with targets at 93.95 and 95 in extension.
Alternative scenario: Below 90.4 look for further downside with 89.3 and 88.7 as targets.
