Traders still prefer other currencies than the US Dollar. As no major reports were published after the weak of NFP of last Friday and easing concerns about a possible attack against Syria, the USD is experiencing an extended period of weakness. This provides an explanation to the uptrend of EUR/USD despite Italy’s escalating tensions. Even the GBP/USD is also making something of the anti-Dollar sentiment of the market. Better than expected reports from Canada and China is providing huge momentum to comdolls.
While I was following the 100.00 level of USD/JPY for the past few days, I have just noticed that the level is also the upper part of a rising channel for the pair in 4 hour chart. If the pair manages to make new intraweek highs, this level may turn into a strong support level. However, I will keep an eye at the bottom of the channel if the weakening of Dollar intensifies.
I am more likely to make a trade in EUR/USD than USD/JPY. I have noticed that EUR/USD is finding it hard to break past the 1.3250 level. In the one hour chart, the level has been tested several times, but it held itself every time. It is also a 50 percent Fibonacci resistance level and is close to a former support level. I will wait for stochastic to provide oversold signal. Once it provides the signal and if the events support my trade, I will place a short order in my ETORO live account.