The forex pairs are on the move this week. As mentioned in the article yesterday, the EURUSD has completed the retracement to the ATR but will it continue to move down or up? In this video, Gail Mercer, founder of TradersHelpDesk, discusses the potential moves on the forex pairs, including the EURUSD, GBPUSD, USDCAD and the USDCHF.
On the EURUSD, currently, buyers have not stepped in to take the control back. In order for the market to resume the uptrend, buyers must overtake the sellers. With the stochastics being oversold on both the 15 and 60-minute charts, this area would be a prime area for the price to find support. However, buyers need to step in to resume the uptrend.
The GBPUSD is also in the midst of a retracement to the ATR. A test of the 15-minute ATR at around 1.3575 to 1.3580 area is likely before potentially continuing lower to the ATR at 1.3530. If the price retraces on the 15-minute chart to 1.3575 -1.3580 area, buyers need to decrease on the approach. This identifies that sellers are still in control and price most likely will continue lower.
Additionally, on the USDCAD, the price has retested the ATR on both the 15 and 60-minute chart, creating a pathway to the ATR at 1.2550. The only overhead resistance at the moment looks to be at 1.2530. Once this area is broken, the price is likely to continue up to the 1.2550 price level. Since sellers have decreased on the retracement to the ATR, this would be an ideal area for buyers to take control.
On the USDCHF, the price has already retraced up to the ATR and broken through it. However, there is overhead resistance at .9770, which may push the price back down to test the ATR on the 240-minute chart. This is also confirmed with both the 15 and 60-minute charts being over-extended to the upside, as well.