Forex Technical Analysis for August 24, 2011

EUR/USD Technical Analysis for August 24, 2011

EUR/USDrose on Tuesday as traders bought stocks and risk-related assets around the world. The candle that was formed rose all the way to 1.45, but was sold aggressively as the level hold again. The close is just below the downtrend line that we have also drawn on the chart as well. Because of this, even with the massive bullish action during the session, we feel that this pair isn’t’ quite ready to launch just yet. The pair would have to close above the 1.45 level on the daily chart first for us to get in on the long side. A break below the lows on Tuesday would signal selling for us in this pair.

AUD/USD Technical Analysis for August 24, 2011

The AUD/USDshot straight up on Tuesday, and jumped over the 1.05 level. This resistance level keeps getting in the way, and it should be noted that the candle did stop once it broke through. However, the trend overall is up and that makes us bullish overall. The breaking of 1.06 has us buying this pair. If we break 1.03, we are ready to short as well, possibly going down to the 1.01 level.

EUR/CHF Technical Analysis for August 24, 2011

The EUR/CHFpair rose on Tuesday, but managed to fall short of breaking above the 1.15 level again. The 1.15 level is a massive resistance area, and it seems that the pair simply cannot break it. If it ever does – this would be a massive buy signal. However, we are looking for sell signals as the trend is without a doubt to the downside overall. With the Swiss National Bank willing to step in to get this pair afloat, we might be waiting for that sell signal for a while. Until then, we sit on our hands and let the market tell us what to do. And at this point – it isn’t telling us to buy or sell.

NZD/USD Technical Analysis for August 24, 2011

The NZD/USDpair rose on the Tuesday session, and ended at the top of the candle. The candle did stop at the 0.8350 resistance level, which has been tough lately. The pair could react by falling a bit, but it should also me mentioned that the level isn’t a major one. More than likely, the pair continues to rise, and any fall from this level should have the prudent trader watching for bullish and supportive candles – especially around the 0.8000 to 0.8100 levels. The market isn’t sellable until we close below the 0.8000 area. With the especially strong candle on Tuesday, it looks as if this pair is finally ready to move – to the upside.

USD/JPY Technical Analysis for August 24, 2011

The USD/JPY pair fell on Tuesday, but managed to bounce slightly the closer it got to 76. The pair is being artificially supported by the jawboning of the Bank of Japan warning against “excessive speculation in the Yen.”This will hold the downtrend up a bit in the mean time, and makes this a least favourite pair for us to trade at the moment. If we can break the top of the Monday doji – we might be tempted to buy with a small position. Otherwise, we find this pair is best left alone as the trend is down, but a central bank stands just below.

GBP/USD Technical Analysis for August 24, 2011

For the last 5 sessions, the GBP/USDhas tried to break through the 1.65 level. While it can do that, it simply cannot stay above that level. Tuesday saw a shooting star form from this level, and the technical set up is certainly to the downside. The breaking of the bottom of the Tuesday candle signals selling, and this could lead to the lower levels of the recent consolidation area, which would have us looking for 1.61 roughly. A break to the upside would have to break the Friday highs in order to get us bullish of this pair.

USD/CAD Technical Analysis for August 24, 2011

The USD/CAD pair fell during the Tuesday session, but only slightly. This might be because of the uncertainty involving the Jackson Hole meeting of central bankers this week. On Friday, Ben Bernanke, the Federal Reserve Chairman, will give a speech. This speech is becoming more and more important as traders convince themselves that the Fed is going to step in and bail them out again. If there is no quantitative easing to be found, the USD should gain as the market has been selling it on the whole, and with these two currencies being so interconnected, there is a real chance to see this pair shoot straight up if he doesn’t offer QE3. However, the parity level needs to be broken above, or the 0.98 needs to be broken below in order to finally get a signal as to the direction of this pair.

USD/CHF Technical Analysis for August 24, 2011

The USD/CHFcontinued to be the “place were money goes to die” on Tuesday. The market is in a very tight range, and it appears that it is “stuck” at this time. The 0.8000 level is massive resistance, and the Swiss National Bank is willing to step in and keep this market up. This will make for very difficult trading conditions for the foreseeable future. The pair needs a large red or green candle to make us get involved. The trend is down – so we prefer that candle to be red.

 

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