November 05, 2024 at 04:52PM
The US election day will keep the markets on edge, but technically, the process should be followed. The price action and the tools will help to define the the bias, define the risk and define the targets.. In this video, I take a look at the EURUSD, USDJPY and GBPUSD and outline the key levels in play, so you can be aware and prepared through the potential market volatility.
EURUSD: THe key for the EURUSD is that the 200 day MA held support at the end of day yesterday and into the Asian session today. The subsequent move to the upside saw the price move to a higher swing area betwene 1.0899 and 1.09125. The 50% of the move up from the April 2024 low is also in that area. Going forward, a move above would open the door for more upside momentum with the 100 day MA at 1.09401. Above that and the falling 200 bar MA at 1.09564 would be targets. On the downside, a move back below the 200-day MA at 1.0692 is needed to tilt the bias more to the downside. Move below that level takes the price back into the Red Box, with the 100 bar MA on the 4-hour chart at 1.08460 followed by the swing area (and low of Red Box) down between 1.07609 and 1.07767.
USDJPY: The USDJPY found support buyers at the 200 day MA yesterday . Recall not last week, but the week before, support buyers also stalled the fall at the 200 day MA. That MA is being approached by the rising 100 bar MA on the 4-hour chart. Going foward if the 200 day MA can hold support, the buyers remain in play with more work to do. What is the “work to do?”. On the topsde, the 61.8% of the move down from the July high comes in at 153.387. Above that is the highs from last week at 153.88 and the high going back in time to end of July at the same level (the last three highs has stalled at the same level). That sets that level as a key resistance target.
Conversely, on a break of the 200 day MA (and staying below) would have the price targeting the 50% of the range since the July high at 150.757 to the 100 day MA at 150.298. Break below those levels and the sellers can prove further.
GBPUSD….The GBPUSD has moved back above the 1.3000 level in the US morning session after stalling at support yesterday at support at 1.2938 (lows and highs going back to mid-July. The move back above the 1.3000 level gives the buyers more control with a swing area at 1.3043 to 1.3058 as the next targes followed by the 200 bar MA on the 4-hour chart at 1.31125.
This article was written by Greg Michalowski at www.forexlive.com.
