Wednesday, November 19, 2008

11-19 Pairs to Watch





There could be some possible trades developing. After reviewing a few charts this morning, a few pairs grabbed my attention. The first is the GBP/USD. If we should get a rally, the 1.5373 price level has a good confluence of fibs and a good support level. On the down side, if we were to get a drop to 1.4663 this also seems to be a likely area for a bounce. I am seeing some signs of bullishness but in this uncertain market where the dollar seems to be the safe haven currency, it's just a matter of wait and see.
Looking at the EUR/CHF pair something interesting to me is happening as I write this. We have had a close above previous resistance and now are revisiting the TSR area at approximately 1.5208. There has been one bounce at this level already by looking at the 15 minute chart so I am watching to see if this level will continue to hold or give way once again. This price level is key on the daily chart as it was previous support that became resistance last week and now is support yet once again, at least at the moment. The USD/CHF has been travelling up a trend line showing possible signs of weakness and right against a weekly support area near 1.2089. I will be watching to see if price breaks above and holds there or can finally break below this very strong trend line and break down some key levels.