Forex Trading: Gains In EUR/USD And EUR/JPY

The better housing data has kept the trends of the day intact.  The EUR/USD has moved through the 61.8% retracement level of the move down from the January 19th high to the January 23rd low.  The level comes in at the 1.3148 level. This level will be eyed as support now.

Along with the gains in the EUR/USD, the EUR/JPY has also benefited.  The idea is that given the better housing, there should be a unwinding of the risk trades which has seen the Yen crosses get hit hard.  Last week the EUR/JPY hit new lows breaking below the October low of 113.61.  The pair moved higher from those levels and although higher at 117.91 currently (sharply higher from the lows last week), the upside has further room on the daily chart.

The problem is the 115.42 level is the current stop level (corresponds with the 100 hour moving average).  Closer support comes in at the 200 hour MA which is at 117.02.  Watch the Yen crosses to benefit.

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Comment by TradingForexProfit

2009-01-26 17:59:18

should be a bullish week for EURUSD ahead

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