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.
When the Australian Dollar was reaching the all time high against the US Dollar, it was also getting much stronger in relation to other currencies. Some of them moved to all time extremes, too. The EUR-AUD cross made the new record low several times, eventually falling to 1.2925 in late December.
During the last several days, the GBP-USD showed an increased intraday volatility. The popular “cable” had daily ranges averaging 200 pips, with the largest one of almost 300 pips, which took place on the last trading day of 2010.
The USD-JPY surprised many trades during the second part of December. Just at seemed that the price would challenge the post intervention high of 85.60, this pair changed direction. It sold off, falling from 84.50 to 80.90 in a span of about 2 weeks.
Currencies are known as some of the best trending financial instruments. This means, that major trends, once established, have tendencies to last for a long time. Unfortunately, this characteristic of Forex was not visible in the second half of 2010. Most of the currency pairs showed indecision, especially on longer-term charts.
EURUSD was very strong yesterday but so far it remains in the broad 1.3070 - 1.3270 range. And since it is near the upper limit of this range, the odds favor a pullback from here.
The prices declined to as low as 81.81 but then bounced back slightly. However, this bounce was nothing else than an oversold bounce and it didn't change the hourly trend: it remains strong downtrend.
EURUSD has risen above 1.3200 level and thus it appears now that a base has been built below that level. And that shifts the hourly trend on the upside. The larger degree picture though is still not very clear and actually as long as the 1.3280 resistance holds, the daily chart is more negative than neutral.
The market rallied on Friday slightly to 1.5475 and then pulled back again. This morning however it is once again trading near the important 1.5450 level. Thus, the hourly downtrend remains weak and actually it has weakened furthern compared with our last update.
The NZD-JPY has been relatively quiet recently. It is moving in rather narrow ranges, as compared to past few years and lacks direction. Long-term charts show a tepid market, undecided about the next major move. This could change soon.
The EUR-AUD has been in a downtrend since the financial crisis erupted in 2008. After reaching the all time high, this pair has been in a steady downtrend, perhaps better described as a free fall. The price seems to be making new lows constantly and reached yet another one on Tuesday at 1.3107.
The British Pound has been in a prolonged bear market against the commodity currencies. It has made numerous all time lows in relation to the AUD, NZD and CAD
The Australian Dollar has been slipping against the USD recently. Perhaps not as much as other currencies, but the selloff has been noticeable and steady. It is possible that some of the AUD crosses will experience corrections as well, at least in the short term.
One of the currency pairs, which do not get many headlines these days, is the USD-CAD. For a good reason – it is not moving much.
In the wake of the sovereign debt crises in Europe, the common currency has been under serious pressure lately. This is especially true in relation to the US Dollar and, even more so, against the Swiss Franc. In fact, the EUR-CHF made a new all time low on Wednesday, at 1.2757.
Trading in December is often more challenging than during other times. With major holidays approaching, many market players take time away from the markets, while others limit the size of their transactions.
