The following are the most recent pieces of Forex technical analysis from around the world. The Forex technical analysis below covers the various currencies on the market and the most recent trends, technical indicators, as well as resistance and support levels.
The AUD/USD is trying its best to remain bullish after the open on Monday, but will news out of the USA this week put a stop the the gains? Price has opened above the 62 EMA after producing a 175 pip bullish engulfing candle on Friday, but we have a descending trend-line intersecting with the 61.8% retracement level at about 1.0630 and the pair will also encounter heavy resistance at 1.0690.
Yesterday the EUR/GBP pair cleared a major resistance zone at 0.8800 closing the day at 0.8830. We have been bullish on this pair for the past week and it appears to be full steam ahead now that we have crossed and closed on the upside of the 62 moving average at 0.8788.
The Sterling lost some ground today against the Greenback, which seems to have been strengthened by positive numbers from the Durable Goods Orders report out of the USA for July. With little data coming out of London today the Greenback seized the opportunity and capitalised on it by gaining 120 pips.
The EUR/CHF has been somewhat sideways for the past week after the pair turned bullish on August 11 and was pushed almost 1500 pips upwards. Since then, as with most of the other pairs in Forex, we have seen little movement.
Looking at today's chart on the EUR/USD doesn't tell us much other than confirm what I've already said, little market movement. That's okay, lets take a longer view of the same pair and switch to the monthly chart. Now its getting interesting!
Last week marked the third week in a row that the kiwi has fallen, which poses the question "Why and what Now?". In the past week we have seen reports indicating that the inflation rates in the land of the kiwi are expected to rise up to as high as 3% within 2 years (higher than previous projections of 2.64%), the trade surplus narrowed in spite of an expanding GDP ( indicating the NZD economy is moving forward) and better than expected retail sales numbers.
The Loonie gained some serious ground today against the Greenback, a result of the volatile action in the USA & Global markets. The Philly Fed Index, which measures regional manufacturing numbers and is considered to be a solid indicator of economic conditions, as well as jobless claims in the USA both reported disappointing numbers.
EUR is one of those currencies which shows cycles, and the arrows mark out 3 different magnitudes of the same cycle repeating over and over again: a downtrend followed by a sudden rise.
The USD weakened a little more today after the FOMC's Fisher & Plosser expressed different views on the US economy's future. Fisher believes interest rates will need to be adjusted before 2013 while Plosser is optimistic that the US economy will grow 3% before the end of the year. This comes as good news to anyone who is bullish on the pound right now.
While in absolute terms there is no question whether the Australian economy remains in much better shape than that of the US. Even in relative terms, the US “recovery” is falling apart faster than Australia is decelerating.
The Euro was confined to narrow ranges ahead of the US open on Monday with resistance close to the 1.43 level as investors remained tentative over conditions, but the currency then advanced strongly in the New York Session.
The Aussie has seen a positively bullish day. A strong session on local equities buoyed sentiment and assisted in underpinning the currency.
The NZD/USD pair has been very bullish for quite some time, and it appears that it will continue to be so in to the future. Weekly chart shows a long shadow or hammer , which has found support not surprisingly at .8300.
The pair remains in weak downtrend and since the market is now overbought and hourly oscillators are moving on to sell signals, another leg down may take place today.
A chart of EUR/USD recently looked just like my favorite roller coaster, which makes me think a downtrend will be seen for a while. The pair will likely hit 1.4085, so a sell might be in order.
