Forex Technical Analysis for November 9, 2011

EUR/USD Technical Analysis for November 9, 2011

The EUR/USDpair rose on hopes the EU is getting closer to a solution as the Italian PM has promised to resign. However, at the same time Italian bonds are spiking to the highest levels since joining the EU. The situation isn’t’ healthy, and as a result, this market could be forming a bit of a bull trap at this point. The 1.39 – 1.40 area is above, and it looks quite resistive at this point. We would look to sell on weakness in that area as marked on the chart. (Yellow area.)

 USD/JPY Technical Analysis for November 9, 2011

The USD/JPYpair fell during the session on Tuesday as traders shorted the Dollar against most major currencies. The pair is being supported by the Bank of Japan via intervention, so the move down will more than likely be a slow and brutal grind, but we know this intervention was unilateral – which fails most if not all of the time. We are ready to take profits well before the lows, as we think the central bank will intervene again if this pair falls too much.

GBP/USD Technical Analysis for November 9, 2011

The GBP/USDpair rose during the session on Tuesday as the Dollar was sold off against most of the major currencies. The pair still remains above 1.60 which is very bullish, but formed a shooting star candle during the day as the market couldn’t quite stay afloat. The market looks like it is ready to consolidate between 1.59 and 1.62, and as such we are willing to trade the market from a scalper’s perspective with short-term charts being our guides between those two levels. We are looking for short-term gains, and are going to be quick about closing our trades.

USD/CHF Technical Analysis for November 9, 2011

USD/CHF tested the 0.9000 level on Tuesday, but found sellers at that area. The pair has been pushed around quite a bit by conflicting comments out of Swiss National Bank officials over the last 24 hours, so it appears that traders are simply trying to jump on headlines as they appear. The longer-term outlook for this pair is still up, as the SNB is working against the Franc. But the pullback we are seeing on Tuesday does suggest that the move might be a grind, and not a rush.

EUR/CHF Technical Analysis for November 9, 2011

The EUR/CHFpair had a range bound session on Tuesday as traders continue to wrestle with the EU problems and the intensity of the Swiss Central Bank and its intervention intentions. The 1.20 area is a well-known floor in this pair, so we haven’t been able to short it for some time now. However, it is also going to be hard to buy, as the Euro represents an area of the world that is simply far too toxic at the moment, and the EU would have to pull it all together in order to make this a good buy. Once they do – this pair will be a long-term trade to the upside, but we are a long way away from that these days.

AUD/USD Technical Analysis for November 9, 2011

AUD/USDfell again on the session for Tuesday, but bounced again in order to form a hammer at the end of the day. The pair looks like it is trying to find real support at the 1.03 level, but the 1.05 area is just above and locks formidable. With this in mind, we can’t buy this pair now, as the move could be limited. Until we get a solid daily close over the 1.05 level, we will not buy this pair and are willing to pass the trade up. A break of the lows on Monday and Tuesday would also signal a move to the downside. With these two triggers in place, we know under which parameters we are willing to be in this market from.

USD/CAD Technical Analysis for November 9, 2011

USD/CAD had a bearish day during the Tuesday as the oil markets rose. The CAD is highly sensitive to the price of oil, and as such will rise when the markets in crude rise. The pair fell as traders continue to buy up oil, sell the Dollar, and race towards the most obvious place on this chart – parity. The parity level seems to be like a magnet for this pair, and we think it should continue to act as such. Because of this, we think the pair will have a hard time breaking through to the downside with any serious conviction, but if it did – we would be sellers. The reality is that the market will more than likely be very range bound between 0.99 and 1.03 going forward.

NZD/USD Technical Analysis for November 9, 2011/strong>

NZD/USDrose during the session on Tuesday, but fell just short of the 0.8000 level. The pair looks like it needs to overcome this area in order to resume any real bullish action. The area looks very resistive, and could produce either a move down, or a pop. The headlines risks out there will continue to push this pair around and as such – we need to see a large candle in one direction or another so we can follow it. In the meantime, we are willing to let the market make up its mind, and we will go with it.

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