USDJPY ends the week at long term trendline (based on dailyfx article)
-“USDJPY is respecting the gap from October 2008 at 105.30. This level and the outside day seen on January 2nd should at least warn of a pause in the uptrend.” -USDJPY finishes the week right at the trendline that connects the lows from November 2012 and October 2013. The decline from the top is a wedge, so a return to 103.85 or even 104.80 could be in store sometime this month. Near term, price ends the week at resistance (102.24/50). I’d expect support at 101.63/77. -Longer term, there is an Elliott case to be made for a return to the 4thwave of one less degree. The range spans 93.78 to 96.55.
NZDUSD Technical Analysis (based on dailyfx article)
-So much for the break below .8100. NZDUSD took back all of last week’s drop (mostly on Tuesday) this week. Price is back in the middle of the range…within the larger range. -.8335/77 is possible resistance. I’d expect support at .8237.
AUDUSD Technical Analysis (based on dailyfx article)
-The next major target in AUDUSD is .7937. This target is determined by the .8847-.9757 range (.8847 – (.9757-.8847). Interestingly, the 50% retracement of the decline from the 2001 low registers at .7927. ‘Chartwise’, the 2010 low is at .8067. Significant demand may not exist until this zone. -The rate carved a doji on Friday after trading into the 12/6 low of .8989. The 1/3 high at .9004 is possible resistance along with the line that extends off of the December and January highs. Failure to stay below .9085 would open up .9167-.9267. -If the trend has turned higher then expect .8870 to hold as support next week.
GBPUSD Technical Analysis (based on dailyfx article)
-After trading to its highest level since April 2011 last week, GBPUSD carved a large outside day reversal. This is the kind of action that could lead to a larger top. Weakness below the line that extends off of the 2009 and 2011 highs and specifically 1.6308 would suggest as much. -At the same time, GBPUSD found support this week from former resistance levels; specifically the October high and top side of the line that extends off of the 2009 and 2011 highs. Key support and resistance next week are 1.6308 and 1.6495.
EURUSD Technical Analysis (based on dailyfx article)
-EURUSD remains capped by the trendline that connects the 2008 and 2011 highs. The break below the trendline that extends off of the September and November lows increases the probability that the late December high is significant. -The late December failure also raises the possibility of a double top with the October and December highs. The pattern would trigger below 1.3294 and yield a 1.2757 objective. This level is in in line with the 2013 low. -The rate ends the week just below resistance from the line that extends off of the 12/27 and 1/24 highs. 1.3527 is possible support.
How to Trade USDCAD Forex Yearly Pivot Points (based on dailyfx article)
The 2014 USDCAD Yearly Pivot Trading Plan
With USDCAD so close to the yearly forex pivot at 1.0969 area, the current correction may find support at the R1 pivot (1.0969) or turnaround from current levels. The first target would be the old yearly high of 1.1223. A close above this high could open a path to the R2 pivot at 1.1602 and the R3 pivot at 1.1892.
Friday’s 8:30AM ET US Employment number could be the spark that ignites a massive rally to the upper pivots. On the other hand, USDCAD could sell off if the employment number comes in lower than expected. Over the course of a few weeks, price may move below the R1 pivot and move down to the central pivot down at 1.0392.
As with any type of support and resistance, Forex traders are looking for breaks or bounces from these key areas. These areas are watched heavily by Forex traders around the world and often are used as option levels as well. So you may want to print this article out and pin it on your wall or just simply place a couple of the nearest yearly pivots on your charts for reference.
Norman Parkinson (1913-1990) was one of the twentieth century's best-known fashion photographers. He was active for over 50 years and was instrumental in taking portrait and fashion photography beyond the stiff formality of his predecessors and injecting an easy and casual elegance into his images.
On the image - The Italian Collections: Three little black dresses, Queen, 1961
Barclays appoints junior trader as head of forex desk
Barclays has appointed a junior trader as interim head of its London spot foreign exchange desk, illustrating a thinning out of the ranks after a torrent of traders has departed or been suspended amid a global probe into alleged market manipulation.
The UK bank has promoted Daniel Ryan on an interim basis to the position of global head of voice spot trading, a post left void after the suspension of Chris Ashton last November, two people close to the situation said.
“If they [the banks] pick less experienced people for these jobs they are in essence accepting the fact that they will be making less money and that they will take less risks,” a senior fund manager said.