Forex Technical Analysis for August 30, 2011

EUR/USD Technical Analysis for August 30, 2011

The EUR/USDburst through the 1.45 level on Monday, only to get repelled yet again. Because of this, we are more certain than ever that the 1.45 area is the biggest level in Forex markets right now, and should be watched intently. Until we get a nice strong finish above that level – this pair will continue to struggle. The pair is a fight between two of the weakest currencies at the moment, and this back-and-forth shows that. Until we get that solid green candle that closes well above the 1.45 mark, we are hesitant to buy at this point. Selling is tricky as well, since the lows keep getting higher.

AUD/USD Technical Analysis for August 30, 2011

AUD/USDrose again on Monday, and even got above the 1.06 level – an area that has given it trouble recently. Because of this, we are decidedly bullish on this pair, and think that we will perhaps see 1.10 before too awfully long. The 1.08 are ahead should provide some resistance, but the 1.10 is a much larger target for the markets. If we break below the 1.05 mark again, this wouldn’t necessarily get us bearish, but rather uninterested in this pair.

EUR/CHF Technical Analysis for August 30, 2011

EUR/CHF has bounced all the way up to the upper 1.19 handle over the last few weeks, and as such – the trend has suddenly become much more difficult to ascertain as the Swiss National Bank continues to find new ways to punish traders for depositing their money into Swiss institutions. The technical end of the equation looks as if we are trying to test the 1.20 for resistance, and found it. However, it should be said that this move has been very impressive, and that one would have to think the bulls aren’t done quite yet. We feel that any fall from this level will see support at 1.15 and an ensuing battle at that point. If the 1.20 area gives – we are throwing in the towel on the downtrend, and buying at that point. We feel that this pair will make its new direction known over the course of the next few trading sessions.

NZD/USD Technical Analysis for August 30, 2011

The NZD/USD pair continues to move upwards on Monday, as the trading community embraces risk around the world. The pair is certainly bullish, and the break above the 0.84 level shows that this pair is demanding to retest the 0.85 level in order to continue the run north. The pair isn’t’ able to be traded to the long side quite yet, but on a daily close above the 0.85 level – we will be long. We won’t sell it unless we see a close below 0.80, and the commodities markets selling off.

USD/JPY Technical Analysis for August 30, 2011

USD/JPY continues to be stuck in a sort of “No Man’s Land” just under the 77 handle. The Bank of Japan desperately wants this pair to rise, but they are probably the only ones. Because of this, there has been a lot of verbal intervention in the press lately, with the BoJ saying it is “actively monitoring the markets against excessive speculation in the Yen.” This has kept the bears at bay in this area, but nobody wants to buy this pair either. Because of this – the USD/JPY is better left alone at this point.

GBP/USD Technical Analysis for August 30, 2011

The GBP/USDpair had a bullish day on Monday, as traders continue to sell the USD against many other currencies. As the stock markets rallied, the Pound got a bid – as it is considered a “risk-on” currency against the Greenback. The 1.65 area looms overhead, so any gains will more than likely be muted by this fact. We see the 1.64-1.65 area as one massive resistance zone, and as such don’t expect this pair to go too much higher than it is at the moment. We are decidedly flat and neutral about it at the moment, but would like to sell any signs of weakness on a daily close.

USD/CAD Technical Analysis for August 30, 2011

USD/CADfell on Monday, and even managed to break below the 0.98 support level. The resulting bar looks a little like a hammer, but not decidedly so. The real impression is that the level gave way as traders bought up oil, pushing demand for the Loonie around the world. The pair has been in a downtrend for a very long time, and as such – we prefer shorting it anyways. The breaking of the Monday lows gives us a selling signal in this pair. We can’t buy it until it is well clear of parity.

USD/CHF Technical Analysis for August 30, 2011

The USD/CHFformed a shooting star on Monday, and even did so right at a weekly downtrend line. Because of this, we feel this pair will more than likely fall from here, although we don’t expect a plunge. The pair looks like it has had a very strong run, and needs to pullback at this point. With the Swiss National Bank in the mix, the Franc is actively being sold off as they try to recover from the damage done to their export market in Switzerland. It should also be noted that the 0.8000 support level is just below as well, and this makes this sell signal a little less interesting at the moment. We don’t sell until we clear the 0.80 level. A break above 0.8300 has us actively buying this pair.

 

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