EUR/CHF had a wild week, finishing toward the 1.12 handle, but not after first visiting the 1.20 area, and then the 1.10 area! The pair is in a massive downtrend, but the truth is a lot of trends end just the way this pair has been acting – very, very messy. Because of this, we are looking for a weekly close below 1.10 to sell, or above 1.20 to buy. Until then, this pair will more than likely be very choppy for the long-term investor.
The AUD/USD pair rose again on the week, but fell towards the end. The resulting candle is green, but looks a little like a shooting star. Because of this, we feel a pullback might be coming. The 1.05 area should be supportive, and we would be willing to buy the pair at this area on signs of support coming into the markets. The pair is more than likely set to consolidate between 1.05 and 1.10 over the next couple of months. We don’t sell this pair unless we close below parity.
The USD/CAD pair formed a hammer on the weekly chart, showing massive support in the sub-0.98 area. However, the massive shooting star leading to the parity level also bodes for confusing trading in the near term. The pair could see consolidation between the 0.98 and parity levels. The economies are intertwined so much that choppy and indecisive trading isn’t exactly out of the ordinary for this pair. We look for a close above parity on the weekly to go long for the longer-term, and a close below the 0.98 level in order to short this pair.
The NZD/USD pair rose during the previous week, but struggled to get above the 0.85 for any significant amount of time. The resulting weekly candle is a shooting star, and this pair looks like it is heading lower at the moment. The pair isn’t bearish however, but rather could be a sign that we are about to enter the consolidation area again that is bordered by the 0.85 and 0.80 areas. The pair is decidedly bullish, so instead of selling, we would prefer to see some kind of buy signal a little lower in order to go long of this pair.
The GBP/USD pair fell on Thursday, and even managed to break below the 1.62 mark as traders sold off many risk-related assets around the world. The Pound has been a favorite of sellers lately, but now is getting into more serious support. We did see a significant bounce at the end of the session, but the pair is decidedly weak. With the choppiness in this pair lately, with think that selling rallies is now the way to go in this pair.
The EUR/USD pair fell hard on Thursday, as traders are focusing on the various issues in the European debt markets. The Non-Farm Payroll report comes out at 8:30 a.m. New York time and this pair will certainly be effected by it. The two currencies are both reviled as both economies are weak at best. The pair is tough, and it is choppy to trade. Because of this, we think the pair will be almost impossible to trade on Friday. However, the close could give up much more information. In the mean time, we see much cleaner set ups in other pairs such as the AUD/USD and NZD/USD for today.
The USD/JPY pair rose quite a bit on Thursday, but only to fall again in later trading. The 77 level is now turning into significant resistance at this point, and should keep a bit of a cap on the market in the coming days. The bears are more in control, but the Bank of Japan is waiting to intervene in the market if prices get too low. Something has to give – but we haven’t seen it yet. Sitting on our hands is the way to go in this pair for the time being.
The USD/CHF pair fell again on Thursday as traders continue to buy the Swiss Franc against most other currencies. The pair tested a weekly trend line and failed to the upside a couple days ago, and as such – has confirmed the downward trend again. The area in the 0.79 – 0.80 levels is massive support, and if that gives way- we will go much lower. The 0.75 level is more than likely the next stop if this happens. If the area holds, we need to see 0.83 level broken to the upside in order to buy this pair.
The USD/CAD pair fell again on Thursday, although did not manage to break through the bottom of the hammer from Wednesday. This shows that there is still some support in the 0.97 area, and it will have to be overtaken in order to fall more. The trend is down, so we are more comfortable shorting this pair than buying it. The daily close below 0.97 is a great sell signal in our opinion. The pair cannot be bought until we close above parity.
The NZD/USD formed a hammer on Thursday, after forming a shooting star on Wednesday. The 0.85 level is shaping up to be a significant battle area, and could determine the short-term future for this pair. The breaking above the high on Wednesday could prove this pair to be strong enough to rise more. A breaking of the lows on Thursday would be very bearish. The Non-Farm Payroll report will more than likely throw this pair around in the New York morning, and as such – we think waiting until the closing of the daily candle might be the best way to find your signal in this pair.
The EUR/CHF pair fell on Thursday, and it looks as if the 1.13 level will have to be broken in order to continue the fall. The pair is decidedly bearish, and the 1.10 area looks like a target to the downside for this pair. If we cannot break 1.13, then we will bounce. The 1.2000 is the ultimate resistance in this pair, and we want to see it overtaken in order to go long. If we break through 1.13, we will get aggressively short of this pair.
The AUD/USD pair rose on Thursday, and continues to impress in its ability to rise in the face of a “risk-off” environment. The Aussie is now becoming a bit of a safe haven play, albeit moderately so, but the Aussie is being bought by traders looking for strong and vibrant economies around the world. The 1.08 level is now the area to break above if we want to see continued upward pressure. The Non-Farm Payroll report will cause fireworks, and this pair could move rapidly as a result. All trades should wait until after 9 a.m. New York time, as this pair will more than likely be moving quite a bit. If we can get above 1.08 – we should go higher.
EUR/USD fell 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.
The USD/JPY pair fell 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.
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/CHF fell 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.
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.
The AUD/USD pair 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.
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.
NZD/USD rose 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.