Forex Technical Analysis for November 8, 2011

EUR/USD Technical Analysis for November 8, 2011

The EUR/USD pair fell on Monday, only to bounce later in the US session. Even with a failed EFSF bond auction, the Americans continue to buy the Euro. The pattern is becoming obvious: Europeans sell, Asians sell, and the Americans are buying. If you are a short-term trader, this is important information. If you are looking at the daily charts, you can see a hammer forming that looks like this pair wants to rise. However, the 1.39 – 1.40 area is just ahead, and you would have to think it will be massively resistive. We prefer selling rallies overall.

USD/JPY Technical Analysis for November 8, 2011

USD/JPYcontinues to hang in around the 78 handle, and as such – it is providing little in the way of short-term trading opportunities. The intervention has scared many of the traders away, but these unilateral interventions almost always fail. In fact, the last one did in just 5 days! The move down should be coming, but it will likely be a grind rather than a free fall. Because of this, if you are already short of this pair, patience is the key. We are short, and presently holding on until about the 77 handle.

GBP/USD Technical Analysis for November 8, 2011

The GBP/USDpair had a range bound day on Monday as traders still look for direction in terms of the “risk on” or “risk off” trade. The markets are very volatile, and will more than likely continue to be until some kind of work around has been accomplished in Europe. The cable pair is highly sensitive to the global risks, and as such we aren’t overly keen on owning it presently. Technically, we need to see a new high again – about 1.62 or so – before we would serious consider buying. The 1.60 level needs to give way to sell however. The pair looks a little bit “stuck” at the moment.

USD/CHF Technical Analysis for November 8, 2011

USD/CHF rose during the session on Monday as officials out of Switzerland stated that they are willing to do what it takes to weaken the Franc. This move ran counter to what went on in all of the usual correlated markets, so we can only assume it had to do with the comments. None the less, the pair finds itself at the 0.9000 level, and this area is well-known resistance. If the pair can move to roughly 0.9075, it might be worth a long as the SNB is obviously working to keep XXX/CHF pairs lofty. Add to that the fact that the USD is the last remaining safe haven currency in an uncertain market, and it makes sense. We cannot sell this pair under any circumstances.

EUR/CHF Technical Analysis for November 8, 2011

The EUR/CHF pair rose quite strongly during the Monday session as Swiss officials reiterated their resolve to weaken the Franc against the Euro and all other currencies. With this in mind, a breakout could come, but it seems somewhat dicey to think that the Euro will rise for any significant amount of time. With knowing this, we aren’t ready to buy. If we can close on a daily chart above the most recent highs – we will consider it. For the Tuesday session, we will be watching very closely.

AUD/USD Technical Analysis for November 8, 2011

AUD/USDfell on Monday, but managed a bounce again as American traders continue to ignore any signs of global economic issues. The pattern has been the same for a while: Asians and Europeans tend to sell off risk assets such as the Aussie, and Americans continue to buy them. On the daily chart, the candle looks like a hammer trying to form, and this is a supportive sign. However, the 1.05 level is just above, and is certainly resistive. The chart calls for consolidation between 1.02 and 1.05 or so.

USD/CAD Technical Analysis for November 8, 2011

USD/CAD had a down day on the session for Monday, as traders piled into the oil markets. The pair seemed to focus on this during the session, and as such – the standard correlation between the value of the CAD and the value of the oil markets held up nicely. The oil marketslook like they have a clear path for a few Dollars, so we think this pair will more than likely follow suit, and fall just a bit – and that gets us to the parity level. However, the level should be supportive, and as such – any shorts we could take now are of the scalping variety.

NZD/USD Technical Analysis for November 8, 2011

NZD/USDhad a fairly quiet day on Monday as the 0.8000 level still manages to keep a lid on the market. The area has to be overcome in order for the Kiwi to accelerate the recent gains it has seen. The pair did smash through the level on the down side rather quickly, and one has to wonder whether or not the pair is simply retesting former support for resistance. Because of this, we think the pair will be slightly bias to the downside, but aren’t willing to take that trade out of the blue. We need to see resistive candles right at the 0.8000 level in order to sell. If we can close above that level on a daily chart – we would consider longs at that point.

Collect your free Forex Broker Bonus now!

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at