October 20, 2016: The key levels in play for your forex trading
EURUSD.
The EURUSD led the charge in the NY session, falling to the lowest level since June 24th and barely missed taking out that days lows at 1.0910 (the low reached 1.0915 so far). On the way down, the pair fell below trend line support (currently at 1.0950 - see hourly chart above). The corrective high off the low stalled at 1.09455 - just 5 or so pips from that resistance level. The sellers are in charge.
GBPUSD
Apart from an afternoon peak, the GBPUSD traded between channel trend lines on the hourly chart today. In between sits converged 100 and 200 hour MAs at the 1.2244 level. That is where the price is trading as we head into the NY session close and into Friday trading.
Sellers in control , below the topside trend line, but if the pair cannot get and stay below the 100 and 200 hour MAs, that little peak above the topside trend line will likely be broken with more conviction next time.
USDCHF
The USDCHF moved above "The Box" that confined the range in trading over the last 6 trading days. That range extended from 0.9855 to a 0.9913. There were actually two breaks today. One below the lower extreme and one above the upper extreme. We are looking to close above the higher level, so the buyers have the control. The question in the new trading day will be can the price get above topside trend line at 0.9939 and then swing highs from July at 0.9949 and May at 0.9955. If broken, thenn a test of the 1.0000 seems to be in the cards. (PS. the price is moving away from the 50% retracement level as well).
NZDUSD
The NZDUSD fell with the dollar strength but stalled as a cluster of support approached. Trend line, 100 day MA at 0.7181, 100 hour MA at 0.7179 and 100 bar MA on 4-hour chart at 0.71746 all come together in a 6 pips area (from 0.71746 to 0.7181). That is the level to eye in the new trading day.
