EURGBP DAILY CHART – Retracing after a failed break
This cross was a driver in yesterday’s turnaround day and again early today, boosting GBPUSD while EURUSD lags.
For those trading EURUSD, yesterday’s run through stops at 1.0892 was driven by selling of this cross that saw GBPUSD buying take over after EUREUSD selling did not follow through. (I will post a link to an article on using crosses to trade SpotFX).
Looking at this chart, it has been straight up from a low at .8382 to yesterday’s failed break of .8620 to a high at .8626, leaving no obvious support levels below the market.
So let’s look at retracement levels using our Fibonacci Calculator
GBPUSD 4 HOUR CHART – Retracement
Once again, thanks to JP for alerting us to the 100 and 200 daily moving average zone yesterday, where GBPUSD found support, helped by the reversal in EURGBP.
The move up is so far just a retracement that would first need to break the trendline and then move through 1.2800-20 to suggest a reversal.
On the downside, look for support if it holds above 1.2735.
Otherwise, look for 1.2750 to set the intra-day tone of trading within 1.27-1.28
vigilance for megaquake
could be metaphorically too to traders
japan meteorologist issued what they called a “mega earthquake caution,” assessing that the possibility of a large quake was relatively hically too her than usual but not that one would definitely occur in the near future. It urged the country’s residents to practice increased vigilance for the next week
XAUUSD – GOLD
If the Shiny thingy surmounts that Line just above the head ( apx 2430.00 ) , we’ll be on the road to 2500.00 for starters.
Another test of the support at 2390.00 is still possible, but I wouldn’t discard the possibility for Gold to just continue Up without further delay.
Ultimate target is at 2615.00
JP (your NG stocks)
Oil is a buy but metrics point to trouble over $76 and/or approaching $77 for now barring some shock. Natural gas on the other hand is in full buy mode as inventories rose less than expected but the pricing was already primarily in place on the bid so there could be a brief pause approaching $2.2 and back toward $2.1 or lower somewhat in stride with oil and up from there.
Once again the devil is in the details. The headline jobs number is better than expected. What is behind the headline number is that entering 2020 96% of job applicants found work, but the fact is that now 96% of applicants do not find work. The percent of jobs created is also dominant on the part-time position vs the full time position. While layoffs and firings do not appear to have much change in the headline, re-assignment to part time from full time is heavily skewed toward part-time re-hire, which cancels out the original layoff/firing.
Smells all rosy to some people though.
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