Forex Technical Analysis for September 1, 2011

EUR/USD Technical Analysis for September 1, 2011

EUR/USDfell again on Wednesday as fears over European debt issues reared their head again. The market is fragile at this point, but to be honest – the choppiness has taken a lot of the clear cut support and resistance areas out of the picture. The 1.4350 area just below the close is an area that we have seen a lot of back-and-forth lately. The pair is a matter of trading two ugly currencies, and as such – this pair will be very choppy for a while. Until we get above the 1.4550 area – going long is difficult, and selling is getting harder and harder as the lows are getting higher. Because of this – we fell that the Friday Non-Farm Payroll number is going to be vital in determining the future direction. In the mean time, we expect very little in the way of clarity.

AUD/USD Technical Analysis for September 1, 2011

The AUD/USDpair had a neutral day on Wednesday as traders fought back and forth on whether the pair should rise or fall. The pair looks like it is trying to decide if it can break into the 1.0700 area, which is the bottom of an area that should be somewhat resistive. The pair is certainly bullish, so if it falls we would be willing to buy on dips, at least until the pair breaks below the 1.05 area. A break of the highs on Wednesday would also have us buying. We don’t sell this pair at all until we close below parity.

EUR/CHF Technical Analysis for September 1, 2011

The EUR/CHF pair fell hard on Wednesday as fears over Europe continue to plague the market. However, it should be noted that the 1.15 level held quite firmly against the bears. The breaking of this level is absolutely vital in this market if we are going to fall at all. The level holding up could foreshadow another move up – however, we feel that the 1.20 level is massive resistance, and that would be a real longer-term signal. We like shorting if we get below the 1.14 handle, and buying above the 1.20 mark. Until then – this pair will be consolidative.

NZD/USD Technical Analysis for September 1, 2011

NZD/USDrose again on Wednesday, but formed a second shooting star-shaped candle. This shows that although we broke above the 0.8500 resistance area, the pair is struggling. Because of this, we fell a pullback could be coming in the Kiwi dollar, but are not willing to short it. In fact, we feel that the 0.84 area should be supportive under the supportive 0.8500 level, meaning that we shouldn’t fall too awfully far. Because of that, we are buying dips in this pair until we close below 0.8400 on a large red candle.

USD/JPY Technical Analysis for September 1, 2011

The USD/JPY pairfell on Wednesday, yet managed a nice bounce in the latter hours of the session. The candle for the day printed as a hammer, and just above the 76 level. The market is supported by the Bank of Japan, so a fall from here would more than likely get the central bank involved. Because of that fact, we don’t sell this pair. We are looking for a reason to buy – but we need to see the 78 handle come into play in order to do that. In the mean time, this could be a good pair to scalp.

GBP/USD Technical Analysis for September 1, 2011

The GBP/USD pair fell hard on Wednesday as traders sold the Pound. The pair is approaching the 1.62 level, and will face support in this area. The market must close below the 1.62 level in order to push more selling into the market as it has been in consolidation for quite some time. The market looks weak, but until we get below that level – we are still just over support. The bullish case is hard to make in this pair as the highs are getting lower over time – a basic part of any down trend.

USD/CAD Technical Analysis for September 1, 2011

The USD/CAD pair fell on Wednesday, but managed to bounce in the later hours. Because of this, we formed a hammer on the daily chart, just below the 0.9800 handle. The trend is down, and oil looks likely to break out, both of which are keenly pro-CAD, but this candle isn’t. With the shooting star-like candle from Tuesday, this shows a market that is confused at the moment. More than likely, we will be waiting for the Non-Farm Payroll report on Friday to make any real decision on the fate of this market. Until then, we expect this pair to be stuck in a tight range.

USD/CHF Technical Analysis for September 1, 2011

USD/CHFfell hard on Wednesday, after bumping up against a weekly trend line for a few days. The pair fell straight to 0.8000, and area that was once massive resistance. The bounce from there is good for about 60 pips at the time of writing, which is fairly strong for this typically slow-moving pair. The breaking of the trend line and the 0.83000 level is going to be vital for this pair to continue the bullish move in the future. In order to sell – we need to see 0.8000 broken through significantly.

 

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