Euro trading had an up and down day today while finishing the week about 70 pips lower than last week.   The last two days have found a seat on the 100 day SMA which looks to be a nice support zone at 1.5670.   The May 8^th low and June 13^th low look to have created a double bottom.   The July 7^th low and July 24^th low look to have also created a double bottom.   These lows should point to an exit for the bulls in the short term.   Now for the risk area for the bears out there: 1.5800 zone then up to the 1.5870 zone.   With all this interpreting of the market moves, next week has the opportunity to be an exciting and volatile week.   We wish all success to the traders out there next week.

From the noise that comes out of trading the sterling dollar there is some clarity, and we hope to touch on this today for those that are looking for direction.   Since the beginning of the year we have seen difficult conditions and trading strategies have been tossed out the window.   The highest high is up at 2.1150 and then there was a test that reached the 2.0400 level.  Last week made a high at 2.0150 and has come back to the pivotal level this week.   That’s 3 lower highs in the last 9 months!   We had higher lows from June 13^th to now that has created a trendline waiting to be broken.  The hard support from all this mess is 1.9339 which could be tested if a break below 1.9760 happens.   I hope this helps, thanks for reading.

Carry trade or not to carry trade?   That is the question.  Were not too far away from the major resistance of 108.56 and the upwards momentum looks to be losing some steam.   At the moment price action has come up to the 61.8 fib fan only to create congestion.   Lets watch all yen crosses on the Sunday market open.