Clear Trade Ideas in 3 FX Pairs
12/13/2011 6:00 am EST
The latest chart patterns for the EUR/USD, USD/JPY, and GBP/USD currency pairs show clearly defined trends that present favorable trading opportunities, writes technical analyst Joel Kruger of DailyFX.com.
The latest corrective rally in the EUR/USD appears to have stalled out by 1.3550, and the market now looks poised for a bearish resumption to challenge the critical October lows at 1.3145.
A break below 1.3145 is significant and will open the door for deeper setbacks over the coming weeks and months into the lower 1.2000 region.
Ultimately, only a daily close back above 1.3550 will negate the outlook and give reason for pause.
The USD/JPY has managed to successfully hold above the bottom of the daily Ichimoku cloud to further strengthen our constructive outlook, and we look for the formation of an interday higher low by 76.55 ahead of the next major upside extension back towards and eventually through the recent multi-day highs by 79.55.
Ultimately, only a close back below the bottom of the Ichimoku cloud would negate the outlook and give reason for pause, while a daily close back above 78.30 accelerates.
The GBP/USD market correction out from the recent lows at 1.5420 appears to have finally stalled out, and we will be looking for a daily close back under 1.5560 to confirm the bias and accelerate declines.
A close below 1.5560 should accelerate declines towards 1.5420, below which will open an even deeper setback to retest critical support by the October lows at 1.5270. Ultimately, only back above 1.5800 would delay this and give reason for concern.
By Joel Kruger, technical currency strategist, DailyFX.com