EURUSD

The EURUSD is currently trading 1.2935 back in the recent range between 1.2900-1.2950. This range has now expanded to become more like 1.2900-1.3000. The pair opened with a gap higher after closing at 1.2957 on Friday. The EURUSD re-opened at 1.2977, 20 pips higher but has since surrendered all the gains and moved lower than Friday's close. This could be considered moderately bearish but needs close attention. At this stage there is a great deal of focus on and interest in the EURUSD. It is trading at 1 year lows and has breached and held below the key 1.30 area. Today there is little economic data news in the US and Europe and none of potentially high impact. Although starting Tuesday there will be a slew of data across all major economies, the highlight of which will be the FOMC Projections, Fed Funds Rate, and FOMC Press Conference on Wednesday. I expect larger than normal moves in the EURUSD and all majors versus the USD and EUR this week. At present the Euro is under pressure with the pair below 1.30 and still trading below the downtrend channel. As long as the pair remains below 1.30 and below the downtrend channel, the bias remains bearish.

EURUSD Support areas include 1.2900, 1.2867, 1.2800, 1.2745 followed by a key support at 1.2550. Resistance levels above are at 1.2959, 1.30 figure level, followed by 1.3165.

EURUSD 4 Hour Chart

EURUSD

EURUSD 10 Minute Chart

EURUSD

EURUSD 5 Minute Chart

EURUSD

GBPUSD

The GBPUSD is trading sideways following the bounce from 1.6050. We are now at 1.6259 and targeting the 1.6300 area. The pair has slipped from above 1.70 over the last two months and still remains in a downtrend set-up, but is capable of strong corrections as the declines have been significant and potentially excessive. The Scotland Independence question remains a key concern and any surprising announcements or developments could lead to unusually strong and sudden fluctuations. Volatility is often considered to be a positive input in Options trading, i.e. more volatility equals more chance of getting in the money. Tuesday inflation figures will be announced for the pound with the CPI (Consumer Price Index) released. Wednesday Employment statistics in the UK and Thursday will the Scotland vote.

GBPUSD support areas include 1.6200, 1.6100, 1.6000, 1.5900, and 1.5850. Resistance levels and upside targets at 1.6250, 1.6365 and 1.6500.

GBPUSD 4 Hour Chart

GBPUSD

USDJPY

USDJPY is trading at 107.30 and is only several pips away from making a new high for the year. The JPY is the 3rd reserve currency of the world so to speak, after the USD and the Euro. It may be more correct to say it is the 3rd most abundant currency in the world at the moment after the USD and EUR. I expect that it will be overtaken by the yuan of China in several years, just as China overtook Japan as the world's second largest economy a few short years ago. In case anyone was unaware. The price of the USDJPY in the 1970s was 360, yes that’s not a typo, 360. The USD has lost ground against several currencies. The USDCHF was between 4 and 5 in that decade as i now 0.93. The USD is up 5% against the Yen since August and the trend is up. A breach below 100 would be required to shift the pair's trajectory to the downside. While we may make new highs here be careful for sudden pullbacks owing to profit taking and also because the pair has moved up steadily without any significant corrections of late. Support levels for USDJPY can be seen at 107.00, 106.65, 106.00 and 104.65. Resistance to the upside at 108.00, 109.00 and of course big level at 110 (You need to look at a monthly chart to even find resistance levels). The USDJPY is trading at a 6 year high, levels not seen since 2008.

USDJPY 4 Hour Chart

USDJPY