Forex Technical Analysis

  The USD/CAD pair has fallen again, and is currently testing our support level near the 0.9620 mark. As the pair popped up yesterday, certainly a lot of traders that missed the move down from 0.97 got involved. Because of this a break down is still considered to be likely, and a buy is not recommended at all. New lows will bring more selling.

  The GBP/USD pair went straight up today as buyers stepped in and increased their exposure to riskier assets. The cable looks strong, and like it is set to test the 1.64 level, and possibly higher. The selling of this pair is discouraged after a bullish day like today and the obvious support at 1.60. Buying on a break of today’s highs can be done, but the move was so strong you can’t help but feel like you are chasing it. 

  The GBP/JPY pair has made its intentions known today by rallying 250 pips. The move comes after a bullish hammer at 135.50, which says that this pair has not only broken out, but is planting a firm floor there as well. Selling is impossible, but so is buying until we get a nice pullback. This pair is now a “buy on the dips” pair. 

  The GBP/CHF pair has broken above the 1.50 level, and much quicker than expected. This shows that the pair has found massive strength, and should continue northward. The pair should pullback, allowing any of you who missed the move a chance to buy – if you are patient. Shorts should only be considered under 1.48 at this point. 

  The EUR/USD pair has formed a bullish hammer directly after forming a bearish shooting star. Because of this, it looks like confusion will reign until the ECB has its interest rate hike and statement on Thursday. This pair does look to have a bullish bias to it at the moment, but there is a long tradition of selling the news when these things come about. Also, the rate statement will be vital to decide the future direction of the Euro. If there is no mention of further possible tightening – it will go down. Between now and then, you may find this pair difficult.

  The EUR/JPY pair has broken above the 120 level, and much quicker than anyone could have anticipated. This shows massive strength, and should erase any ideas of shorting this pair at all. A massive pullback is necessary in order to get involved, however the 120 area could serve as support. Entering up here is simply chasing the trade. 

  The EUR/GBP pair has broken down at the 0.88 level, showing its intention to head back to the 0.86 level as the ECB looks set to hike rate in a couple of days. A break above 0.88 is necessary to even consider a long, and a break below today’s lows can be a selling opportunity. 

  The EUR/CHF pair has formed a second hammer in a row just under the 1.32 level, and slightly above the 1.30 area. Because of this it looks like the EUR/CHF wants to go higher, and has formed a bit of a base at 1.30. The pair could go sideways for a while longer. Selling under 1.30 is preferred, and buying above 1.32 is acceptable. 

  The AUD/USD pair fell and is currently finding support at the 1.03 level as traders weren’t patient enough to let it retest the 1.02 level. The day formed a hammer, and looks to be ready to continue the move upward. With gold breaking out to new highs today, the Aussie was always going to get a bid. Selling this pair is still impossible, and buying above the high for today is preferred. 

EUR/USD test forecast 2