Price & Time: Key Levels to Watch Around the Central Bank Decisions

EUR/USD rebounds off an Andrews line

AUD/USD potentially tracing out a more important bottom

GBP/USD needs to overcome 1.5725 to signal the start of a more important move higher

Foreign Exchange Price & Time at a Glance: forex technical analysis,forex analysis,forex trading strategies,forex signals,forex strategies,forex strategy, forex trading

Price & Time Analysis: EUR/USD

• EUR/USD traded to its lowest level in over a month Tuesday before finding support at an Andrews line in the 1.3160 area
• Our near-term trend bias is negative on the exchange rate while below 1.3300
• The Andrews line at 1.3160 is now a key level of focus with weakness below ideally on a closing basis needed to signal a downside resumption
• A medium-term turn window is eyed around the second half of next week
• Strength back over the 1.3300 50% retracement of the August to September decline would turn the outlook back to positive

EUR/USD Strategy: Like selling into strength over the next few days.

Instrument	Support 2	Support 1	Spot	Resistance 1	Resistance 2
EUR/USD	1.3130	*1.3160	1.3200	1.3240	*1.3315

Price & Time Analysis: GBP/USD

• GBP/USD has moved steaduly higher since finding support on a closing basis last week at the 1x1 Gann angle line of the year-to-date high
• While over 1.5460 our near-term trend bias will remain higher
• The 78.6% retracement at 1.5655 is the next minor upside pivot, but strength over 1.5725 is really required to signal the start of a more important move higher
• A minor cycle turn window seen at the end of the week
• The 50% retracement of the late August decline is near-term support, but only weakness below the 1x1 Gann line at 1.5460 undermines the postive structure in Cable

GBP/USD Strategy: Like buying on weakness next week.

Instrument	Support 2	Support 1	Spot	Resistance 1	Resistance 2
GBP/USD	*1.5460	1.5570	1.5605	1.5655	*1.5725

 

Price & Time Analysis: USD/CAD

• USD/CAD has struggled to overcome resistance at the 1x2 Gann angle line of the of the 2012 closing low in the 1.0560 area
• However, while above the 50% retracement of the July range at 1.0425 our near-term trend bias is higher in the rate
• The 1.0560 remains a critical near-term pivot with strength above required to unlock critical resistance at 1.0610 and above
• A minor cycle turn window is seen early next week
• Weakness below 1.0425 on a closing basis would turn us negative on Funds

USD/CAD Strategy: Like the long side while above 1.0425

Instrument	Support 2	Support 1	Spot	Resistance 1	Resistance 2
USD/CAD	*1.0425	1.0465	1.0480	1.0560	*1.0610

 

Focus Chart of the Day: AUD/USD

In previous Price & Times we have written about the potential importance of the early August low as this time period holds a clear Fibonacci time relationship with several important lows of the past 4 years. Last week’s inability to break under .8845 further confirms its importance and raises the possibility that a larger bottoming process is unfolding. Traction over .9230 especially on a weekly closing basis would be further confirmation of this scenario. Only unexpected weakness below .8845 would completely undermine the positive potential time cycle relationship. 

 

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