Tuesday, May 8, 2012


EURUSD: Bounced off its lows yesterday as buyers stepped in bid the EURUSD back above 1.3000.  However, the pair failed to close its gap from yesterday’s close.  This sets ups resistance going forward this week at 1.3065, followed by 1.3085.  With the lack of follow through buying to close the gap, it could trigger profit taking from yesterday’s short term buyers.  Forex traders should keep their eyes on the 1.3000 level to see if it continues to be supported.

GBPUSD: After falling below 1.6150 support last Friday, the GBPUSD again found support just above 1.6100. The constant presence of demand bodes well for a potential breakout higher if the GBPUSD can trade above its current 1.6210 resistance.

USDJPY: Continues to find support at 79.60.  However, wasn’t able to rally much in yesterday’s afternoon risk rally with resistance at 80.00 holding.  A break below 79.60 could trigger buyers to back off until 79.00, while any move above 80.00 will see resistance at 80.40 and 80.65.

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