Pullback on the EUR/JPY to the 133.00 level

The Euro remains weak versus most of its major counterparts and we can see on the 15 minute chart of the EUR/JPY that the drop has taken the price all the way to the 131.00 level. This is an amazing drop of more than 300 pips, from which the price bounces back up another 200 pips to visit for a second time the 133.00 level. When the price broke the 133 level to the downside today at the beginning of the trading session, it pulled back to the 133 which acted as a resistance, this time the 133 level seems to be acting again as a good resistance and the price may go back down to its medium term bearish trend.

The EUR/JPY is close to touching the 134.00 level

The Euro has weaken versus the main currencies, including the Yen. The pair has dropped so rapidly that it is very close to the 134.00 level and we could see the price testing that level. The round number level could act as support for the pair but if this Friday’s manufacturing data out of Europe comes out lower than expected, then the pair may break that level to the downside.

Another drop on the AUD/USD

The Australian Dollar has come back to the 0.8100 level versus the US Dollar, but we can clearly see that the level has been a very good support for this currency pair. The price may try to stall at this zone or even try to bounce to the upside. But we must keep in mind that as he price keeps testing the same support over and over, the chances of a breakout to the downside are higher. Therefore, we must be vigilant to a possible breakdown, which could take the price all the way to the 0.8000 level.

The GBP/USD continues consolidating on the daily chart

The Pound versus the Dollar keeps oscillating between the 1.5100 zone and the 1.5200 level. The pair has found a good support on the 1.5100 and the longer the price stays consolidating around this area, the stronger the movement may be when the price breaks out of consolidation. We can also notice on the daily candles that there has been a lot of volatility lately, due to the relatively long shadows. However, if we see a breakout to the downside, we should wait for confirmation of the breakout and then the pullback to this same area for a possible short entry.

Pullback on the EUR/JPY daily chart

Will the 137.00 level act as a resistance on the EUR/JPY? So far the pair has been steadily correcting to the upside and has broken the 136.00 level after bouncing from the 135.00 level. At the moment the price is very close to touching the 137.00 level and since the bearish trend is still in place, the price may try to stall at that level or even try to bounce back down. Therefore, let us pay attention to a possible visit to the 137.00 level, because some trading opportunities may be present there.

How to find a good Forex broker?

What has happened recently with the rally on the Swiss Franc has left some Forex brokers practically on the streets. The shares of FXCM trading in the New York Stock Exchange fell from approximately 13 Dollars to 98 Cents. After Leucadia National Corp. lent FXCM 300 million Dollars, the shares rose to 4 Dollars. Other brokers like Alpari had to declare themselves insolvent and had to close shop. Because of what has happened is why right now is the best opportunity to choose among the best Forex brokers that managed to cover themselves and protect their clients from over-leveraging on the Franc.

A notable case is Dukascopy, which managed to see what was coming since November of last year when they rose the margin requirements on all CHF positions. ActivTrades was also another broker that rose the margin requirements on the CHF since last year and then they disable all trading on the CHF since last month.

Therefore, now is the moment to analyze and see which were the brokers that best came out of this event.

Bearish trendline is holding down the Kiwi

On the NZD/USD we had noticed that the price has been oscillating within a bearish channel, but is really the upper boundary of the channel or the upper trendline the one that has been holding the price down and it has not allowed the pair to break above the zone. However, a breakout of that trendline to the upside could take the price to the 200 exponential moving average around the 0.8037 level. From that moving average we could see a bounce back to the downside.