The Risk Today

The Risk Today:

EurUsd Looking at the 4 hour chart we can see that the pair is getting rather extended and we have still not seen a retest of the 1.4445 breakout level. The pair is currently congested around one of the medium term uptrend channels at 1.4600, just above the support at 1.4570, but the RSI has been moving sideways throughout this entire move suggesting that a pullback is long overdue. Expect 1.4445 and 1.4381 to attract a fair amount of short covering and fresh buying from the USD bears.

GbpUsd We have discussed a head and shoulders pattern a lot recently and today we have a key level of 1.6750 to stay below in order to maintain the formation. An almost perfect entry level today for those playing the head and shoulders with a potentially huge reward : risk ratio for the medium term. Those playing it safe will likely wait for the ten day uptrend to break at 1.6546.

UsdJpy Continued weakness in the pair has taken it to an extremely important support level at 90.86. The medium term uptrend channels are now completely wiped out so this support level will be the only thing for the long players to cling onto. A break here targets 88.60 which also coincides with one of the 2 year downtrend channels. Expect intraday short interest at 91.80 and 92.47

UsdChf The support at 1.0340 /70 is keeping the pair afloat this morning but the pair is on a one way train for now. Expect some intraday short covering around these levels but renewed short interest at 1.0452 and 1.0550. A break of this support targets 1.0264

Resistance and Support:

EURUSD	GBPUSD	USDJPY	USDCHF
1.4725	1.6900	92.47	1.0700
1.4684	1.6840	92.30	1.0550
1.4600	1.6750	91.80	1.0452
1.4585	1.6703	90.89	1.0384
1.4570	1.6690	90.86	1.0340
1.4445	1.6546	88.60	1.0264
1.4381	1.6440	90.50	1.0265
S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot