If we are going to be fairly quiet through the US session I thought I might use the time to look at some tech levels. I’m not going to be teaching any well rounded traders to suck eggs but the info may be of use to the less experienced traders.
We had a nice run up in the New Year and after the subsequent retraction we seem to be settled around here. We should look to see what range the market seems happy with. Looking at the price movements over the last few weeks, all being equal, I would think we could base the range on a 1.3250-1.3550 parameter.
We’re currently hogging the weekly 100ma at around the 1.3350 level and have done for the last week or so. The big level below is at the 38.2 fib level from the Nov 2012-Jan 2013 low/high swing. We should also expect some support at the big figure 1.3300. Below here we have a trendline coming up from July 2012. The level as of today is down at 1.3180 but this could come into play over the next few days should we encounter any significant selling.
Other levels to note around here at 1.3350 are the H4 200 ma and the H1 55 ma. This is giving the market a base at the moment as we keep coming back to it. It shows that there is no real decision about which way the market wants to go.
Looking at the daily chart we can see the 55 ma down at 1.3265.
In summary here are some support and resistance levels along side the tech one.
Above
1.3480/90 Strong res
1.3435/40 res
1.3390/00 resistance
1.3350/55 wkly 100ma, H4 200ma, H1 55ma
Below
1.3315/20 orders & support
1.3309 38.2 fib level
1.3265/70 Strong sup Daily 55ma
1.3225/30 sup
1.3180 trendline resistance