EUR/USD Technical Analysis
The euro has plunged after the much stronger-than-anticipated jobs number coming out of the United States, sending it all the way down to basically 1.1585 or so before bouncing. I think we now have a range-bound market that doesn't really know what to do. I currently have this range between yesterday's point where I said I would be a seller at 1.1640 and the bottom here at 1.1580.
I do favor, I suppose, the downside from a longer-term standpoint still, but this is a market that, at least in the short term, probably is going to bounce around. Keep in mind Monday is a holiday in the United States.
USD/JPY Technical Analysis
The dollar-yen is suddenly a lot more interesting to me. This is a major swing low that we find ourselves testing again. It was interesting that the initial reaction was to go to the upside. Makes sense: interest rate spike. I think there's a real chance of a bounce here, but having said that, there's a lot of fear out there about the Bank of Japan. I think longer term, the Bank of Japan has very limited options, but it is an interesting turnaround.
So, I'll be watching this today to see how it plays out. We can see that it is getting pretty aggressive. I think somebody's trying to keep this from popping higher based on the action that I see right now. That being said, if we take out the top of this candlestick, that'd be pretty bullish.
USD/CAD Technical Analysis
The dollar against the Canadian dollar is just screaming higher. Not a huge surprise; there are a lot of things working against Canada right now, not the least of which is the United States. Canadian employment came in at -41,000 as opposed to the supposed addition of 15,000, so that's a huge miss for Canada; it's a huge gain for the United States. The trade war going on at the same time, of course, has major ramifications as well. I am bullish, looking at short-term pullbacks as buying opportunities.
If you'd like to know more about how to trade forex, please visit our educational area .
This article was originally posted on FX Empire
