GBPUSD had fallen very strongly since the beginning of 2013 to March second week. The fall had taken the currency pair from 1.6381 to 1.4831 i.e. 1550 pips. The rise from that low was strong and after some resistance near 38.2% retracement of that fall, the pair had managed to break over it. The upward gains took it to 1.5606. The interesting point here is that 1.5606 is the exact 50% retracement of the move from 1.6381 to 1.4831. A strong resistance was faced at this level for 2…

On May 7th the interest rate was cut by the RBA from 3.0% to 2.75% and that immediately brought a steep fall for the Australian Dollar. The following daily chart of AUD/USD shows the price action and fall since that day.

Price Action Since The Interest Rate Cut

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After failing at 1.3042 EUR/USD had broken below the psychological support of 1.3000 and had touched 1.2796. The support came at the emerging mid term support trend line. The price action is also bringing in a head and shoulder chart pattern and a break below 1.2745 will complete that pattern. If such a move takes place then deeper declines towards the psychological ranges of strong 1.2500 support ranges may be seen.

Weekly…

For past 9 weeks GBP/JPY had been finding support near the 5-week EMA level with every drop in the price level. The currency pair broke that trend last week after over two months.

Past 3 weeks highs have been as follows:

Week of  January 7th: 144.42

Week of  January 17th:…