Forex Forecasts

  The USD/CHF saw a massive relief rally on Tuesday as traders suddenly felt that all was right in the world. Of course, this will more than likely change in a few hours, as the markets are very reckless at the moment. When that does – there should be a continuation of the overall trend, which of course has been down for years. We like selling rallies, and we like the 0.83 level as a place in which to sell.

  The USD/JPY had another quiet trading session on Tuesday as traders are largely abandoning this pair. The threat of the central banks intervening certainly makes this a dangerous pair to short, but at the same time – nobody seem to want to go long at this point in time. Therefore, it is an almost impossible pair to trade currently.

  USD/CAD fell again on Tuesday, making a push towards the 0.9450 support area. The level is significant as it is the last bit of resistance between current levels and the all-time lows. A bounce here isn’t out of the question, and would be expected by many. Because of this, we are looking for rallies to sell. A close below the support level has us going all the way down to the 0.90 handle for it is all said and done.

  The NZD/USD pair shot straight up on Tuesday as traders bought into everything risk-related around the world. The Kiwi has been on a tear lately, and shorting this pair has only brought massive pain to traders. The pair looks like it is ready to be in the 0.85 and above range for a while, and now that the 0.85 psychological level has been cleared – one can only think that 0.90 might be in the future as well.

  Of the three Yen-related pairs that we follow, the GBP/JPY pair looks the most promising after the Tuesday trading session. The pair looks like it is trying to form a base, and go upwards from there. However, the 130 should prove to be very tough to break through, and would be an excellent place in which to short weakness in this market. We won’t buy until we close above that area.

  The GBP/CHF pair skyrocketed on Tuesday as traders bought into risk. The pair has even gotten back to the previous low, a natural area to expect some kind of sell signal. At the time of this writing, we haven’t seen it yet. Because of this, we are waiting to see sell signals in this pair to short it. We would never buy it as the trend is too strong to the downside.

  The GBP/USD pair rose on Tuesday, but looked oddly weak in the later part of the session. In fact, at the time of this writing, it appears that the pair is only going to be slightly changed at the end of the day – quite a statement after rising so quickly earlier. Because of this, we are still bearish of this pair, but need to see a close below the 1.59 level on the daily chart to sell.

  EUR/USD had a very volatile day Tuesday, forming a massive doji as it was reported that the American government may be close to reaching a debt limit deal. The Euro itself has been mixed around the world on the day, and this pair probably reflects the USD news rather than anything Euro-related. We like selling, but need to see new lows at this point.

  The EUR/JPY pair barely moved on Tuesday, and the pair looks very benign at the moment. The trading ranges are very tight, and the pair hasn’t moved much lately. We are waiting to see if the 113.50 area gets tested as resistance, and if it does – we are waiting to sell signs of weakness.

  EUR/GBP fell on Tuesday, but still remains in the 0.88 level’s area. Because of this, the pair still looks stuck, and is going to be difficult to trade as the market simply seems to be confused at best. The overall trend seems to be up – but with all the noise coming out of Europe, this pair will be jumping at times. We are avoiding it at the moment.