28 Nov: Forecast: FX: US$/Majors + trade ideas: FXCharts

On the topside, resistance will be seen at  the session high, if we get there, above which would see little resistance until 1.2000. Beyond this would open the way to 1.2030/50 and even on towards the 8 Sept low at 1.2096.

Preferred Strategy:  For Tuesday, I prefer to look to sell into rallies towards 1.1940, but with a tight SL placed above 1.1960.

Sell EurUsd @ 1.1940. SL @ 1.1970, TP @ 1.1850

On the topside, resistance will be seen at the session high, and as with yesterday, selling into strength, with a SL placed above 112.05 would seem to be the plan.

Preferred Strategy:  It looks as though the market is still generally trapped in being short Jpy so there will be plenty of sellers into dollar rallies from those looking to cut positions. Selling rallies is preferred today:

Sell US$Jpy @ 111.50. SL @ 112.05, TP @ 110.35

On the downside, minor support will again be seen 1.3280/00 ahead of 1.3240 and buying dips would currently seem to be the plan.

Preferred Strategy:  Overall I remain fairly neutral – as per the 4 hour charts – albeit growing cautiously bullish. A break of 1.3280 though would suggest that a near term top may be in place.

Buy GbpUsd @ 1.3290. SL @ 1.3250, TP @ 1.3440

On the topside, once back above the 24 Nov high at 0.9826 would find the 100 WMA and some minor Fibo resistance at 0.9840, with further offers likely to appear at 0.9860 and at 0.9880.

The dollar looks as though it may be trying to form a near term base and buying dips is preferred today.

Preferred Strategy:  Buy US$Chf @ 0.9780. SL @ 0.9720, TP @ 0.9880

Given the bearish outside day though, I would be a little wary on the topside and if we break below 0.7590 we could quickly head down to 0.7565 and 0.7550 ahead of the stronger 0.7530/35, area, which will continue to be strong, but below which would target Fibo support at around 0.7515. A break of this would then look towards 0.7485 and 0.7460/70 (Rising trend support) albeit this is some way off.

Preferred Strategy:  Playing the Aud from the short side on the crosses seems to be the best plan right now and I prefer to remain long GbpAud or long EurAud. As before, I like to sell AudUsd at around 0.7650, with a SL at 0.7680.

The initial, minor support now lies at 0.6885, ahead of 0.6850 and then the stronger level at 0.6790/6800. Below this would find that there is little support ahead of 0.6670 although this remains a long way off and before then we are likely to see bids at 0.6750/60 and again at 0.6700/10.

Preferred Strategy:  Overall, with the longer term (weekly) charts looking heavy, I suspect the Kiwi is currently biding its time ahead of a more sustained test of the downside. In the short term though, I suspect another test of 0.6920/30 may lie ahead and it is possible that we could even see a return to the neckline of the major head and shoulders, at 0.6990, before heading lower. Today could be quiet and a neutral stance seems wise.