Happy Friday from Florida! Down here on business and just like most traders, I continue trading no matter where I go. Especially because this week marked the US dollar come-back and I needed to catch up on some losing trades. This has been my view since yesterday. Life is tough 😉
Although the economic data didn’t quite compliment the technical bullish dollar outlook, yesterday we saw a major jump on the USD/JPY pair which brought the pair back to a two-week high. The dollar strength could have to do with the Russian sanction politics and oil prices.
Even the first case of Ebola in New York didn’t affect the US dollar yesterday although. Unless there are more cases reported in New York in the next few weeks the Ebola story is likely to diminish in its impact on the markets. Of course the nightmare scenario for investors and the public at large would be in Ebola mutates and becomes airborne or even becomes easily transmittable through touch. For now however there is no evidence that the virus spreads any other way but through bodily fluids and therefore the Ebola story is likely to remain a background risk to the market.
Today the markets are mostly consolidating with the only hot economic data being the US New Home Sales report and the anticipation of the weekend.
Intraday Forex Technical Levels
EUR/USD 4-hour: Consolidating.
Invest Diva Likes: Short positions below 1.2661 with targets at 1.2586 ad 1.2511 in extension.
If Pair Goes Nuts: Above 1.2661 look for further upside towards 1.2753 and 1.2828.
What’s up on the Forex Dance Floor: The pair is consolidating below the 23% Fibonacci level at 1.2661 below the Ichimoku’s cloud. The RSI is flat below the neutrality area.
Supports and Resistances
1.2828
1.2753
1.2661 Pivot Point
1.2753
1.2511
AUD/USD 4-hour: Moving within a triangle
Invest Diva Likes: Long positions above 0.8828 with targets at 0.8934 and 0.9019 in extension.
If Pair Goes Nuts: Below 0.8748 look for further downside towards 0.8659 and 0.8502.
What’s up on the Forex Dance Floor: The pair is consolidating in a triangle chart pattern around the very thin Ichimoku’s cloud. A break above or below the triangle could give us a clue of its next move. The RSI is above the neutrality area.
Supports and Resistances
0.9019
0.8934
0.8828 Pivot Point
0.8748
0.8659
0.8502
USD/JPY 4-hour: Consolidating.
Invest Diva Likes: Long positions above 108 with targets at 109.17 and 110.08 in extension.
If Pair Goes Nuts: Below 108 look for further downside towards 106.71 and 105.67.
What’s up on the Forex Dance Floor: The pair is consolidating at the previous bullish target and 23% Fibonacci level at 108 above the Ichimoku’s cloud. The RSI is above the neutrality area.
Supports and Resistances
110.08
109.17
108 Pivot Point
105.67
104.63
USD/CAD 4-hour: Consolidating.
Invest Diva Likes: Long positions above 1.1208 with targets at 1.1248 and 1.1384 in extension.
If Pair Goes Nuts: Below 1.1208 look for further downside towards 1.1164 and 1.1097.
What’s up on the Forex Dance Floor: The pair broke below the Ichimoku’s cloud and is teasing the support level at 1.1208. The RSI is around the neutrality area.
Supports and Resistances
1.1384
1.1248
1.1208 Pivot Point
1.1164
1.1097
