Forex Technical Analysis for September 14, 2011

EUR/USD Technical Analysis for September 14, 2011

The EUR/USD got a pop on Tuesday as traders reacted to every piece of news or rumour coming out of the Euro Zone. The reports of a joint statement coming out of the French and German governments gave a rise to the currency, and then the denial of anything immanent made it fall again. The pair then rose on the simple fact that nothing devastating came out of the EU, but the Italians had to pay a post-EU high on their 5 year bonds during the session as well. Needless to say, the pair is a mess right now, but it should be noted that it fell much quicker than it rallies. Because of this, we feel the market has spoken, and your job is to simply find good setups to sell from at this point. A bounce is possible, but if it doesn’t come – that would be disastrous for the common currency. The pair is better left alone until we get a nice rally to fade or a daily close below 1.35 to short.

AUD/USD Technical Analysis for September 14, 2011

The AUD/USD pair had a whipsaw kind of day on Tuesday as traders simply didn’t know which direction to trade most of the world’s markets. The pair is a proxy for risk, so this isn’t a surprise. The pair currently sits on top of some massive consolidation, so a bounce isn’t out of the question at this point. However, we feel any bounces are going to be opportunities to sell the pair again. The breaking of parity makes any short position a long-term one. We won’t buy the AUD until the markets in general calm down.

EUR/CHF Technical Analysis for September 14, 2011

EUR/CHF continues to sit still just above the Swiss National Bank’s mandated price of 1.20 on Tuesday. This pair is going to be dead money unless there is a sudden interest in owning the Euro, which is unlikely to last for any significant time. The situation in Europe is far from being settled, and as a result owning the Euro is almost impossible. This pair will be dead money for a while.

NZD/USD Technical Analysis for September 14, 2011

Unlike its antipodean counterpart, the NZD rose against the USD in a fairly consistent manner on Tuesday. The pair has bounced from the 0.81 support zone, and it looks like it might try to run towards the 0.84 level again as we continue to go back and forth in this pair. Until we break the 0.80 level to the downside, or the 0.86 to the upside, this pair will continue to bounce around as the world tries to figure out the real damage coming out of Europe.

USD/JPY Technical Analysis for September 14, 2011

USD/JPYfell on Tuesday, as traders sold the USD against most currencies. The main reason is that nothing bad came out of Europe for once. The truth is this pair is very heavily supported just below these levels, so it isn’t possible to short it. In fact, we like the idea of buying, and aiming for a small gain – perhaps about 40 pips or so. The area has held as support, and will continue to do so until it proves otherwise! A close below 76 gets us out of this kind of trade.

GBP/USD Technical Analysis for September 14, 2011

GBP/USDfell gain on Tuesday, and is testing the lows of the massive consolidation area between 1.5750 and 1.65 again. This is a bearish sign for the pair, and the fact that yesterday’s candle was broken through shows that the market is starting to apply serious pressure to the pair. There is talk of monetary stimulus in the UK, and this will weigh on the pound if it comes to be. There are also the problems with UK banks being so exposed to Europe. The pair is a screaming sell if we can get a daily close below the 1.57 level. We think that the recent shooting stars at 1.60 will provide a cap to any bounce at this point.

USD/CAD Technical Analysis for September 14, 2011

USD/CADcontinues to meander in a 200 pip range as it falls on Tuesday. The pair looks like it is waiting for something big to happen, and we believe that is a bull move in the oil markets. As the Light Sweet Crude markets pierced the $90 for the first time in a while on Tuesday, and are at a 5 week high, it will drive the demand for the Canadian dollar higher. This will in turn push this pair down. However, with the fear in the markets these days, a reversal isn’t more than a headline away most of the time. We expect this pair to continue to bounce around over the next few weeks, offering scalping opportunities in the near-term.

USD/CHF Technical Analysis for September 14, 2011

The USD/CHFpair continues to drift around the 0.88 handle as traders have abandoned shorting the Swiss Franc. The USD had a fairly poor day on Tuesday, and as a result, this pair didn’t move again. In a nutshell, this pair only has one direction in the near-term, and that’s up. The Swiss National Bank will make sure this pair doesn’t fall far, so selling isn’t a reasonable possibility. We like buying, but think the pair needs to rest a bit before the next leg up.

 

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