Tech Talk – Key Levels and Charts to Watch
FOREX.com | Mar 15, 2012 04:43AM ET
has continued to trek lower over the past few sessions after it broke below the key 1.3085/90 level – Convergence of the 55-day sma, 78.6% retracement (2/16 low & 2/24 high) & top of the daily Ichimoku Cloud. Shortly thereafter the single currency broke below 1.3050/55, which saw the longer-term 50% retracement of the move higher from Jan. 13th to Feb. 24th and bottom of the daily Ichimoku Cloud. The follow through led to an attempt on 1.3000, but it has so far held up as today’s low came in around 1.3010. This level is of little technical significance, however the was rumored bids in size between 1.3000-25 earlier in the day which may have come into play. Should 1.3000 give way, all eyes will be on the February low around 1.2970/75. Meanwhile, what was prior support now becomes resistance – Thus, look for 1.3050/55 and 1.3085/90 to cap the upside in the short-term.
• USD/JPY has been on an absolute tear this week as last week’s close above the 100-week sma looks to have spurred on further technical buying. The 83.00 level was noted by many on the street to be a large barrier, but perhaps even more importantly U.S. yields (10’s) finally confirmed the USD/JPY move higher and currently trade around 2.268% (quite a move from 2.03% just 48-hours ago) . There’s little technically to prove resistive at present levels (83.70/75) until the psychological 85.00 level, then 38.2% retracement (using the April 2009 high & Oct. 2011 low) at 85.30/35 and lastly the 2011 high around 85.50/55.
• AUD/USD took out the noted 1.0475 level noted in Monday’sSee CHART TO WATCH. Little did I know that rates would shoot higher as quickly as they have, breaking above the highlighted 2.16% & 2.17% levels as well as the 200-day sma in less than 24-hours with ease. Technically, the next levels to keep an eye on are: 2.39/40% (Double Bottom measured move objective), 2.42% (October 2011 high) and then the 38.2% retracement at 2.47% (using the Feb. 2011 high & Sept. 2011 low).
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