EURUSD : The pair hit a fresh yearly low at 1.2254 this morning, just a few pips below Friday’s bottom which was printed amid broad sell off in risk markets following downbeat US jobs figures. Some consolidation could be seen ahead of EU finance ministers’ meeting today, also the major breakout would require some retracements before being confirmed. Consequently, if the cross failed at 1.2300, followed by breaking 1.2250, we might buy mild call options leading to strike at 1.2200. Below this major mark we might expect additional dips but also there will be also a support anticipated at some place hence better to avoid both bear traps and catching the falling knife at this area. Climbing above 1.3300 with a sustained close would create opportunity to activate small call options but conservative traders might prefer to re-sell at the previous key support of 1.2400 .
GBPUSD: The cable bottomed out at 1.5460 (61.8% retracement of 1.5266-1.5776 upleg). It used this mark as support and has begun to correct Friday’s losses but without showing any convincing momentum so far. The 1.5500-1.5520 is the tradable area. Should the price fails to rise back above, buy put options. Breaking below recent lows also would be considered to activate further put options. On contrary, climbing above the latter resistances and preferably to test 1.5500 as support, would allow bulls to buy call options.
USDJPY: Maintains sideways tone despite growing volatility but 79-80 price range still intact so far. Binary traders whom like spike trades could monitor price region formed by 20 and 200 MA on the 1H chart between 79.37-79.75. Break above the mentioned area would allow to place call options but renewed selling pressures would be highly expected around 80 prices. On the other hand, breaching below 79.35-79.40 would signal further easing and thereby put options but basing forecast at 79.12 should be in mind.
USDCHF: Showing a steady bullish performance after peaked a fresh 20-month high at 0.9800. There is a clear bull channel. Extending upside will require to clear higher leg’s resistance at 0.9814, thus binary trader would place call options above this level to avoid bulls trap which isn’t excluded as dollar’s strength is driven fundamentally by risk aversion while higher QE threats would challenge recent rally in the upcoming sessions. Therefore, be careful.
AUDUSD: Lost the ground after US jobs report but the overall bullish picture wasn’t touched by much of damage. The 1.0140 is crucial either to suggest that bearish attempt is over or to indicate deeper corrections. The latter mark represents Fib 50% barrier of latest bull run connecting to 0.9968 and 1.0327, also 100 4H-MA. Buy put options in case of rupture of this level. On the flip side, if the recent stalling above mentioned mark was extended another one hour it should spark some buying demand hence to activate call options. Aggressive bullish traders would find the opportunity in case of climbing above 1.0200.
The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.