What are the charts saying to us...

GBPUSD:

  • Little movement (60 pips) today.
  • The pair has been confined in a narrow range for nearly 1 month's time (265 pips). The last time the GBPUSD had a calendar month less than 265 pips was in 2002.

So the pair is due to extend and move away.

What should traders look for?

  • A break above topside trend line or
  • A break below the yellow area and the 100 hour MA (blue line).
  • On a break higher or lower, go with it and look for momentum. .

EURUSD

  • The EURUSD held support at the 50% of the range since March at 1.0963. A move below this level is more bearish.
  • The EURUSD failed on the break of the topside trend line at 1.1066.
  • The price is back below the 100 day MA at 1.1032. This is a close bullish or bearish level to lean against to define and limit risk

What should traders look for?

  • A break back above the 100 day MA at 1.1032 and then a move above topside trend line at 1.1066 currently, or
  • A break below the 50% and then a subsequent break below 1.0860
  • On a break higher or lower, the momentum moves in the direction of the break will target the old highs and the old lows.

USDJPY

  • The USDJPY moved above the 125.06 level for the first time June 8 (the high in June extended to 125.85)
  • The lower channel trend line held support - bullish
  • Stay above the 125.00 and the buyers are in firm control. Move below it and some control slips away and traders might expect a rotation to lower trend line support
  • On the topside the 125.30 is the next target (topside trend line).
  • The 125.54 is another topside trend line target.
  • Then 125.85 high from June (see daily below)

USDCAD

  • Above the 200 and 100 hour MAs at 1.3102-09. That is close risk for longs now
  • Target 1.3157. Get above that trend line and the door opens for a run toward the highs from last weeks trading.
  • A move below the 1.3102 (say 1.3100), should solicit sell with 1.3042-51 as targets.