Technical Update

August 18 2021

EURUSD

EURUSD 10 pip chart testing monthly low at 1.1700 http://www.eightdragonscapital.com

EURUSD failed at its post US CPI attempt to break 1.1800, the failure has seen the EUR drop to test 1.1700 which has so far managed to hold up the dollar’s advance.

If 1.1700 breaks, the next levels of support are 1.1650 and 1.1620.

Resistance will initially be found at 1.1840/50 a break above here would see another attempt to test the 1.1800 high.

GBPUSD

GBPUSD 20 pip chart http://www.eightdragonscapital.com

Yesterday’s break at 1.3800 caused a sharp sell off in the pound to test support in the 1.3720 area, which has subsequently held.

While we remain below 1.3800 I would expect pressure to remain on the downside with 1.3720/1.3700 support. A break below this level would open up a test of 1.3640 and possible the 1.3580 low.

The downside pressure will only be relieved if GBPUSD can manage a sustained break back above 1.3800. If this happens we would likely see another move up to test 1.3840 and possibly 1.3880 in extension.

USDJPY

This week has seen JPY strength caused by safe haven flows, however the USD is also a safe haven. It may well be that the USD has found a base already against the JPY.

To confirm that the USD has based, we need to see a break of 110.00. If that happens I think the chances of further USD strength will increase and upside moves will follow to 110.60/80 possibly 111.00

However, while the USDJPY remains below 109.80/110.00 there could be further attempts to test support at 109.20, a break would see further losses to 108.80/70.

You can contact us at support@8dragonstrade.com

Published by Neil Callard

Forex Trader and Educator. 30 years trading experience, of which 20 years was market making in major currencies in large international financial institutions.

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