EUR/USD

There's a crapload of U.S. data coming out tomorrow so expect some big moves dude. Let's scope out some gnarly charts to see what might happen. Shakabra!

EUR/USD

Daily Chart

While the Euroland will be releasing industrial production numbers tomorrow morning at 5pm EST, the market will most likely ignore it and wait for the main event, the U.S. consumer price index numbers. This is going to be a big one since the Fed has already said they will base their decisions on further rate hikes on incoming data and what better economic report to provide evidence of inflation (or lack of) than the CPI.Looking at the daily chart above, the pair fell below its 50% Fib line and is fighting with support at the top Fibinnel line for now. If the CPI numbers are higher than expected, this would support further rate hikes for the Fed, and I can see the pair falling to its blue 100 SMA and 38.2% Fib line, which I have highlighted in purple. If it's lower than expected, this would support the halt of future rate hikes and the pair could rise to its purple 200 SMA.Watch out for the TIC Report also. If the CPI numbers come out as expected, the market will want to find something to induce volatility so they'll look at the TIC numbers next. Remember the trade deficit was reported last week at $64.2 billion. As long as the TIC number is equal to or greater than that number, this will be dollar bullish. If it's below $64.2 billion, this would be major bummer for the dollar so look for the dollar bears to come out swinging.Interest rates, not the trade deficit, is still the main theme in the markets right now, so I see the TIC report being significant only if the CPI numbers cause the market to yawn.

4 Hour Chart

That pink 50 EMA is still acting as strong support for the pair on this chart time frame. If the CPI numbers come out higher than expected, I'm looking for the pair to fall to its blue 100 SMA and middle Fibinnel line which I've highlighted in purple. If any data is dollar bearish, I expect the pair to test the top of its channel again, which I've also highlighted in purple.

1 Hour Chart

These are the same Fib lines I've been using for the past couple days and look how nicely the pair is still trading between them. This could all change tomorrow. The pair could just slice through all these lines like a ginsu knife. Right now, all three moving averages are acting as temporary resistance. I can see this pair dropping all the way down to the bottom of its sideways channel around the 1.2000 level. It could also rise up to the 1.2180-1.2200 level as well.

I've applied good ol' pivot points to this 1-hr chart. If you don't know what pivot points are, shame on you, you should have learned about it in our School of Pipsology.

I use pivot points to see the maximum possible range of movement a pair could travel. It's very rare for a pair to rise higher than R3 or lower than S3. From the previous chart, I'm guessing that the pair could fall around its 1.2000 level which is its S2 level. Could it fall even further to its S3 level at 1.1967? Maybe, it's not out of the question. We'll have to wait and see. I also said the pair could rise up to its 1.2180-1.2200 level, which would be around its R2 level on this chart. Could it test R3? If I knew that answer, I'd already be in Bali sipping on a Bourdeux with Jessica Alba.

Some people might call this chart graffiti. I call it chart art. A masterpiece really. I've basically combined my Fib lines and pivot points together on the same chart so you can see how they have similar support and resistance areas.Notice how certain pivot point levels are near Fib lines. I see these as strong support/resistance levels and possible places where the pair will stop or at least take a breather. Like I said earlier, I see it falling to its 1.2000 level which is the S2 pivot point level and its swing low or rising up to 1.2180 which is its R2 level and swing high. And just to protect my façade of brilliance, I will say that I could be totally wrong.

GBP/USD

Daily Chart

Check out this pair being sandwiched right now between its 61.8% Fib line and its blue 100 SMA. This won't last long with the big news coming out. Again, if the CPI is higher than expected, look for the pair to fall to its pink 50 EMA and even to its 23.4% Fib line. If the CPI numbers looks like a puny weakling, this pair could punch through its current double top and jab at its purple 200 SMA.

4 Hour Chart

This pair is currently being supported by its pink 50 EMA on this dealer chart. That might change after tomorrow. If the pair is able to break below its 23.6% Fib line, look for it test one of those support areas highlighted in purple. Look at the support area containing the 38.2% Fib line, purple 200 SMA, and blue 100 SMA. Usually I'd consider that as a very strong support area, but it's so close to the current market price. With big news coming out, I wouldn't be surprised if the pair penetrated right through this area like a GBU-28 “bunker buster” bomb (I watch a lot of CNN).

1 Hour Chart

This is the same 1-hr chart from yesterday. Again look how beautiful the Fib lines act as support and resistance levels. Right now, those three moving averages are resistance levels. The pair attempted to break above these lads twice already and failed so a move to a downside looks favorable. But news can change that real quickly. I wouldn't' be surprised if this pair tested either its swing high or swing low tomorrow.

Awwww yeeeeah….here's another one of my chart art masterpieces! Finger clickin' good! I want to see how high and how low this pair could possible go tomorrow – it's maximum possible trading range. As you can see, it's possible that it could move above its swing high and below its swing low.Now that I've seen the pivot points, I've marked the areas in purple where I believe this pair could go. Because UK's economy isn't doing too well at the moment, I think the pair is capped on the upside. But then again, the market will do whatever it wants yo.

USD/JPY

Daily Chart

Ah, this pair broke above its blue 100 SMA and is now being supported by the blue line. Depending on whether the news is dollar bearish or bullish, I see it either rising to the area of its pink 50 EMA and 38.2% Fib line or falling and finding support on its 61.8% Fib line. I've highlighted both areas in purple to make easier for you to see.

First, look how this pair got smacked upside its head when it tried to test its 38.2% Fib extension line, which I highlighted with a small circle. That is temporary resistance for now. Like I said on the previous chart, it all depends if the news is dollar bearish (lower than expected CPI or low TIC number) or dollar bullish (higher than expected CPI or higher than expected than TIC number like > 80B). I've marked the areas in purple where I believe the pair will go. If it's dollar bearish, look for it to test its 76.4% Fib line again.

4 Hour Chart

This is a sexy looking chart. Speaking of sexy, I don't like to boast but didn't I say this pair would rise up to its blue 100 SMA yesterday? I sure did.Obviously, the pair is being beaten down right now by its blue 100 SMA. If it can break and close above it, it will try and go for its purple 200 SMA. Will it reach it tomorrow? I don't think so. That looks pretty far to me. If it does break above its 100 SMA, how far up will it go tomorrow? I can't find the answer on this chart, let's zoom in on a 1-hr chart.

1 Hour Chart

This is another nice looking chart. Right now, the pair is resting on its bottom Fibinnel line. If it's able to close above its top Fibinnel, look for it to test the top of the channel. If it closes below its bottom Fibinnel line, I expect it to fall to its pink 50 EMA and even test the bottom of the channel. If the news is really dollar bearish, I think its downside will be limited by support from its purple 200 SMA and blue 100 SMA.

I've thrown up pivot points here to see the pair trading range tomorrow. Check out where R2 and S2 are. Could the pair actually go there? I believe so. This pair can move 100 pips up or down very easily. Keep an eye on this chart. I'd like to see what this pair will do tomorrow.Look at where S1 and the two moving averages are. That's good support right there. The pair could stop there or at least pause at that area. But again I could be totally wrong and the pair could simply slice through that area like a samurai sword.Good luck trading tomorrow. The market will probably be super volatile so don't go crazy and try to trade with 5 lots with your $300 of trading capital. But then again…no guts no glory right? I'm joking.

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