Forex Technical Analysis for September 7, 2011

EUR/USD Technical Analysis for September 7, 2011

The EUR/USDpair shot straight up in the early hours of Tuesday in response to the massive 1,000 pip move in the EUR/CHF pair, but quickly faded from that move to an absolute free fall later in the day. The pair is currently sitting right at the 1.40 level, and this is a massive support level. However, the German courts are hearing a case involving whether or not the Greek bailouts are legal in their eyes today. Depending on that ruling, we could see the Euro permanently damaged if the case goes poorly. Because of this, the EUR/USD is a pair we want nothing to do with in the mean time. After the court ruling, the reaction shall tell us which direction to trade in.

AUD/USD Technical Analysis for September 7, 2011

The AUD/USDpair fell hard on Tuesday, but has slowed in the 1.05 area. The piercing of this level is certainly a negative, but the area hasn’t been completely broken at this point. The resulting candle looks a lot like a shooting star, but at the bottom of a down move. The area below looks like a massive consolidation area, and if we break lower we could see that exact scenario. We feel that this pair could fall, but there will be plenty of support until you get to 1.00 in order to break free from the bullish pressure. The pair is very sensitive to the global markets, so if you see a bounce in the stock markets, you could see a bounce in this pair.

EUR/CHF Technical Analysis for September 7, 2011

EUR/CHF skyrocketed on Tuesday as the Swiss National Bank has finally played its “nuclear option” in the currency markets. In a statement, the SNB said that it “can no longer tolerate the EUR/CHF cross at anything below 1.20 and that area in and of itself is still too low.” The SNB also mentioned that they were prepared to buy unlimited amounts of foreign currencies to fight this rise in the value of the Franc. Because of this, the game has changed in this pair and all XXX/CHF pairs in general. It appears that the buying of the Franc for steady profits has just come to an end. We need to see the 1.20 level hold for several days in order to buy.

NZD/USD Technical Analysis for September 7, 2011

NZD/USDfell hard during the Tuesday session, after initially rising in value. The pair looks like it is trying to find the 0.81 to 0.80 level for support and the daily candle for Tuesday is forming a shooting star-shaped candle to emphasise that idea. The pair has recently made a lower high, and if we can manage to break below the 0.80 area – look out below. The breaking of the Tuesday low is a reasonable sell signal, but as I mentioned earlier – 0.81 is the start of serious support.

USD/JPY Technical Analysis for September 7, 2011

USD/JPY rose rapidly on Tuesday as traders bought the USD across the board. The central bank of Japan certainly is happy about this move, and will not stand in the way of a weakening Yen, something they have been begging for over the last couple of years. The market didn’t make a higher high, but at closing, it seems we are just a few pips from doing so. With this in mind, we only want to go long, but only if we break the highs of the Tuesday session.

GBP/USD Technical Analysis for September 7, 2011

GBP/USDfell hard on Tuesday as traders around the globe are buying the USD for its safe haven status. The global markets are certainly nervous at this point, and when this happens, this pair falls. The pair even managed to break below the 1.60 area, but remains in the very wide support area between 1.5750 and 1.60. With this in mind, we are not willing to sell just yet. A close below the 1.5750 sends this pair into bear mode. Any supportive candles in this “zone” could be worth a small position to the long side if we get a bullish engulfing candle, or even a hammer.

USD/CAD Technical Analysis for September 7, 2011

USD/CADrose, fell, and bounced around during the Tuesday session as traders simply do not know what to do with this pair at the moment. The candle looks similar to a shooting star, but not quite as it is somewhere between that and a doji. The market looks a bit confused, but the 0.99 level continues to give this pair trouble. Parity would certainly be a massive resistance area at this point, and it looks as if the trend may still hold. The signal is fairly easy: A break of the lows on Tuesday gets the market selling, but a buy can’t be initiated until we close above 1.0000 on the daily chart. The trend is down, so we prefer selling if possible.

USD/CHF Technical Analysis for September 7, 2011

Yesterday I spoke about what would have to happen for the USD/CHF to be a buy, and all of those points were accomplished. The Swiss National Bank has decided to announce that they are pegging the Franc at 1.20 to the Euro, and as a result – the Franc lost against all currencies, gaining roughly 8% against most on Tuesday. With this in mind we like buying this pair now as the USD is being bought against many other currencies as well. The pullback needs to be in the 0.83-0.85 range, and any supportive candle could be a signal to go long for quite some time. It is far too early to tell, but a trend change could have just happened.

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