We hope you had a great weekend and are full of energy for today’s article, which will be focused on the weekly preview and heads-up of the EURUSD and USDJPY.
The EURUSD erased all of its upward gains it had made throughout last week when the currency pair made a significant fall on Friday. The EURUSD dropped almost 200 pips from 1.3130 to 1.2950 thereby closing the week candle slightly bearish compared to the opening.
The drop was stimulated and enhanced after Friday’s positive USD NFP announcement. The USD unemployment rate dropped to 7.7% and the non-farm employment change was 236k, values that were much higher than anticipated. Read here for all the Forex analysis and Forex trading news from the fundamental point of view. Follow us @winnersedgetrad for immediate free Forex news. The Forex news real time is delivered to you daily 24-5.
The currency has now positioned itself at the bottom yet again. A bounce from these levels would indicate a triple bottom. A pattern of such sort could spark a rally for the EURUSD and the currency could see a bigger correction upwards before heading down south again.
Let us take a look at potential targets for either a bottom break or a bottom bounce:
a) If the bottom does break, then there should be plenty of space for the currency to go lower. The next -0.272 target is at 1.2870. The next support on the weekly chart is a lot lower which is around the 1.26-1.27 levels;
b) If the bottom does not break and we see a bounce off the triple bottom, then the EURUSD could expect resistance at the 618 level at 1.3180. This level also corresponds with a trend line from the tops.
The USDJPY made its break out (read here about you trade break outs more efficiently) during last week when the currency pushed above the 94.50 area after weeks of struggling.
The UJ had a significant pause at these levels as we predicted beforehand. But now the currency seems set for a continuation.
Nathan commented on the UJ as follows in his weekly video “USDJPY Massive Break Out”.
The UJ is moving nicely in a channel. The question whether this pace to the upside can be maintained?
If it does then this provide us Forex traders great Foroex trading advice. Why? By buying at the bottom and taking profit at the top of the channel, the Forex trader can optimize the rate of return on this uptrend.
There are 2 crucial levels that should be noted before reaching the big 100 number, which is also a 500 fib on the week chart;
a) 97.50: it is not only ¾ on the way to 100, but primarily a target of the first move up and the -1.618 is always a number to reckon with;
b) 98.70: it is the -0.272 target of the last swing high swing low.
What currencies are you looking to trade this week?
In any case, thanks for reading! And we hope that this free Forex advice and tips have helped your Forex trading and wish you a successful and enjoyable trading week ahead!
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