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Copper stays strong

We had measured a Fibonacci retracement on copper from the high at the 243.71 level to the low at the 200.17 level. After copper made a low at the 200.17 level, it stalled there and started to consolidate. On the last few days the commodity has stayed above the 23.6% Fibo, around the 210.53 level. If the price continues rallying, then the 38.2% Fibo, around the 216.84 level could act as its next resistance. To the downside, the 203.46 could act once again as a support in case the price falls again to that zone.

The Pound versus the Yen keeps its bearish trend

The GBP/JPY breaks below the 180.00 level and keeps its bearish trend from a few weeks back. The drop stalls momentarily at the 179.00 level, but it could keep falling towards the 178.00 level, which could also act as support. Above the 180.00 level we have a few round number levels which could act as resistance, but the most important one is the zone between the 183.00 and the 184.00 levels.

EUR/JPY: Pullback to the 200 EMA on the 4 hour chart

The 200 period exponential moving average or 200 EMA could work as a good support or resistance zona, especially on the higher time frames like the 4 hour chart. On the 4 hour chart of the EUR/JPY we can see that after it broke below the 200 EMA to the downside, it has now retraced back to it and the EMA may act as a resistance from where the price may try to bounce to the downside. Above the 200 EMA, the 133.00 level may also act as resistance. Below the 132.00 level, the 133.00 could act as support.

The Euro versus the Yen bounces from the 131.00 level

The Euro versus the Yen has reached the round number level of the 131.00, as we can see on the daily chart and bounces from that level to the upside. If the price continues retracing to the upside, the 132.00 could act as resistance, but above the 132, the 133.00 or the 200 day exponential moving average, around the 134.43 level could also act as resistance. During next week, the price could continue falling and the pair could try to go and visit the 129.67 low.

76.4% Fibo retracement on the AUD/USD

After the AUD/USD rallied from the 0.7016 to the 0.7384, the pair started to retrace to the downside with some volatility and reaches the 61.8% Fibonacci retracement where it was consolidating during the last few days. However, today we see that the bearish momentum comes in again and the pair breaks below the 61.8% Fibo to reach the 76.4% Fibo, around the 0.7102 where it has stalled momentarily. From this point the price may try to retrace to the 50% Fibo around the 0.7199, but if it breaks to the downside its next support level could be the low at the 0.7016 level from where it started rising.

EUR/USD: Volatile, but the consolidation continues

Today we had the Federal Reserve’s announcement out of the US, where the central bank has raised its interest rates by 25 basis points as expected. The Euro versus the Dollar became very volatile after the announcement and tried to break below the 1.0900 and above the 1.1000 level, but then it settled around the 1.0900 level again. On the daily chart we can see that the 55 day exponential moving average (purple line) is around the 1.0900 level and continues acting as a good support. The direction of the pair now depends on the future fundamentals from the United States and the Eurozone. In order for the pair to break below the 1.0900 level, the US fundamentals must come out a lot better than expected and in order for it to break above the 1.1000 level, the Eurozone fundamentals must also come out a lot better than expected.

EUR/CAD: Bounce from the 76.4% Fibo

The Euro versus the Canadian Dollar has suffered a drop from the 1.5561 to the 1.4024, but during the last couple of weeks the pair has been retracing to the upside and it has reached the 76.4% Fibonacci retracement as shown on the daily chart. The 76.4% Fibo could act as a good support or resistance zone and that is why we are seeing the price stall at that level and goes back to the 61.8% Fibo, around the 1.4971 level. If the pair continues dropping, then its next support could be the 38.2% Fibo, around the 1.4609 level. To the upside, the 76.4% Fibo could continue acting as a resistance, but if it breaks that level to the upside, then its next resistance could be the 1.5561 level from where it started dropping.

GBP/JPY: Good resistance at the 183.00 level

The Pound versus the Yen drops below Friday’s low around the 183.55 level and breaks below the 183.00 level. The price came very close to the 182.00 level, but it couldn’t reach that level. On the 15 minute chart of the GBP/JPY we can see that after the price broke below the 183.00 level, it made a few pullbacks to that level, but it could pass above it. It clearly shows that the 183.00 has been acting as a good resistance, but a head and shoulders pattern may be developing, which means that if completed, the price may change direction to the upside. To the downside, the 182.00 may act as its next support.

AUD/USD: Another attempt towards the 61.8% Fibo

Yesterday the Australian Dollar rallied versus the US Dollar, pushed by the better than expected readings on the Australian labor sector, but today we see that the pair has fallen again rapidly and it is trying to reach the 61.8% Fibonacci retracement of the move from the 0.7016 level to the 0.7384. The 61.8% Fibo is around the 0.7156 level and if the price visits that level, it may try to bounce from that zone to the upside. Below the 61.8% Fibo, the 76.4% may also act as a support. To the upside, the 23.6% may act as a resistance in case the price goes back up.

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The Nikkei at the 200 day EMA

The Nikkei index has been in a downtrend lately, being hurt in part by the weak Chinese fundamentals and a global economic slowdown. Today the index has dropped to the 200 day exponential moving average, around the round number level of the 19000. The combination of the 200 day EMA and the round number level may cause this area to act as a good support and the index may try to bounce to the upside. However, the fundamentals must help the technical in order to see a change in direction on the index. If the Nikkei breaks below the 200 day EMA, then the 18668 level may act as its next support. To the upside, the lower line of the channel at the 19709 level may act as resistance in case we see a bullish bounce.

The EUR/USD goes back to the 1.0900 level

The EUR/USD made a low yesterday on the 1.0800 level and from there it bounce to the upside, all the way to the 1.0900 level, as seen on the 30 minute chart. At the 1.0900 level, the pair may find some resistance, but the bullish momentum is still in place. Since the price has already visited the zone three times and each visit is getting closer to each other, that could be an indication of a possible bullish breakout. In case the price breaks to the upside, the 1.1000 could be its next target for the pair. A bounce to the downside from the 1.0900 level could take the price back down to the 1.0800.

Inverted Head and Shoulders pattern on the EUR/USD 15 min

The inverted Head and Shoulders pattern is a bullish reversal formation that usually appear at a key support level. On the EUR/USD 15 minute chart we can see that during today’s session, the price dropped below Friday’s low and touched the 1.0800 level from where it bounces to the upside. Around the 1.0800 level we can see three troughs the form the Head and Shoulders pattern. The Neckline is the upper trendline that is broken to the upside, from there the bullish momentum accelerates and the price breaks above Friday’s low. Form the current levels, the price may continue rallying, but it may also dropped once again, trying to visit the 1.0800 which could act as support.

Oil breaks below the 40.00 level

Even though light crude oil retraced yesterday to the upside, the 41.19 level has acted as a resistance and today oil bounces to the downside and breaks below the 40.00 level to make a daily low around the 39.59 level. Amid the latest meetings by the OPEC members, there are no real fundamental reasons for oil to stage a sustainable rally and that is why it remains weak. Below the 40.00 level, the 39.00 level could act as its next support. To the upside, the 41.19 level could continue acting as resistance.

EUR/GBP: Visits the 200 day EMA

The 200 day exponential moving average or EMA, could act as a good support or resistance zone, especially when the price suddenly visits the moving average after a prolonged drop or rally. The Euro strengthens versus its main counterparts after the European Central Bank failed to provide enough economic stimuli as the market was anticipating. That is why we can see on the daily chart of the EUR/GBP that the price reaches the 200 day EMA (blue line), around the 0.7244 level, which coincides with the 50% Fibonacci retracement of the recent drop and stalls there. It is possible for that EMA to act as resistance and the price may try to bounce to the 55 day EMA (purple line), around the 0.7143 level, which could act as support. Above the 50% Fibo, the 61.8% Fibo could also act as resistance in case the price continues going higher, especially when it is just around the 0.7300 round number level.

Oil reaches the 40.00 level

The January contract on light sweet crude oil has reached the 40.00 level. A few days ago we saw the possibility of seeing oil reach that level and today it has done so. At this level, oil may try to stall or bounce to the upside, but the bearish momentum is still in place and it could try to go lower towards the 37.73 level, since there are no strong fundamental reasons for oil to rally for now. To the upside, the 41.19 level could act as a temporary resistance, above that level, the 44.00 level could act as its next resistance.

Head and Shoulders pattern on the Kiwi

The New Zealand Dollar versus the US Dollar has formed what it appears to be an inverted Head and Shoulders pattern on the daily chart. By breaking above the 55 day exponential moving average (purple line), the price has also broken above the pattern’s neckline or confirmation line. At the moment the price is trying to retrace a little bit, but that is normal in this type of formations. The price may continue higher and the 200 day exponential moving average, around the 0.6803 level may act as its next resistance.