EURUSD – Trapped Within Small Range
After clearing above the key 1.3450 level post FOMC announcement two weeks ago, the pair has literally trotted in place, stuck mostly within a 100 pip range since, spending the bulk of that time hovering around 1.3500. With the Italian & Greek issues going on in the EZ, I prefer the bearish side more to start this week. So look to sell intraday price action rallies towards 1.3550, targeting 1.3475 and 1.3400.
GBPJPY – Bullish, But Losing Strength
After breaking and holding above 156.65, the pair broke the prior SH (swing high) at 158.50 touching 160 briefly. But it then formed a pullback, and last week a likely LH (lower high) suggesting at best a range, and more likely a potential reversal price action structure. If the pair breaks below the 156.65 key support level, then I suspect an unwinding of the bullish trend is next. In this scenario, the downside target would be around 154 before buyers step back in.
Dow Jones Index – Down 500 Points
Selling off for 6 of the last 7 days, the DJ index has shed 500 points and has been below the 20ema on the 4hr chart for the last 9 days. Although short term there seems to be the possibility of a potential bounce, with the Greek/Italian issues, risk will likely be off and thus indices under pressure. Bears can look to sell around 15315 and the 20ema for a potential bearish move back down to around 15K. If this 20ema is eclipsed, then bears can look to resell around 15450. Until there is a daily close above 15.5K, we prefer remaining bearish.
Original post
After clearing above the key 1.3450 level post FOMC announcement two weeks ago, the pair has literally trotted in place, stuck mostly within a 100 pip range since, spending the bulk of that time hovering around 1.3500. With the Italian & Greek issues going on in the EZ, I prefer the bearish side more to start this week. So look to sell intraday price action rallies towards 1.3550, targeting 1.3475 and 1.3400.
GBPJPY – Bullish, But Losing Strength
After breaking and holding above 156.65, the pair broke the prior SH (swing high) at 158.50 touching 160 briefly. But it then formed a pullback, and last week a likely LH (lower high) suggesting at best a range, and more likely a potential reversal price action structure. If the pair breaks below the 156.65 key support level, then I suspect an unwinding of the bullish trend is next. In this scenario, the downside target would be around 154 before buyers step back in.
Dow Jones Index – Down 500 Points
Selling off for 6 of the last 7 days, the DJ index has shed 500 points and has been below the 20ema on the 4hr chart for the last 9 days. Although short term there seems to be the possibility of a potential bounce, with the Greek/Italian issues, risk will likely be off and thus indices under pressure. Bears can look to sell around 15315 and the 20ema for a potential bearish move back down to around 15K. If this 20ema is eclipsed, then bears can look to resell around 15450. Until there is a daily close above 15.5K, we prefer remaining bearish.
Original post