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The GBP/USD pair fell on Wednesday as it finally broke through the bottom of the recent consolidation area between 1.62 and 1.65 or so. The pair will also find support at the 1.60 area, so we are expecting choppy but negative motion in the near term. With the UK riots going on, and the issues in Europe - one has to feel that a lot of money could be flowing into the US soon. The AUD/USD pair has fallen again on Wednesday, but remains in a new consolidation area between 1.01 and 1.04. The pair seems to have a ton of support at the parity to 1.02 level, and should continue to receive a bid at these levels. However, with the recent massive down move, we could see a bit of a rest over the next few days in this pair. Play video >>
The USD/CHF barely moved on Wednesday, which we found odd as the stock markets melted down. This is out of character as a lot of the times traders will sell this pair when times are getting tough. Because of this, we feel that perhaps there is a bounce coming in this pair. We won't buy it - we will allow the pair to rise to perhaps the 0.75 level so we can sell at higher levels. A break to new lows gets us selling as well. The USD/CAD pair rose on Wednesday as the trading world sold of riskier assets. This directly effects the Loonie, and as such we went higher. The pair is already falling in early Thursday morning trading and as such we expect consolidation in this pair for a few days between the 0.99 and 0.98 areas. Until we breka above parity on a daily close - we are net sellers of this pair. Play video >>
EUR/CHF continued its massive fall on Tuesday, as traders simply "ran for the hills" during the Asian session. The markets did eventually calm down in general, but the pair never really bounced like the riskier ones did. The pair actually came within 60 pips of parity, and as such - we think it will have very little trouble getting there in the near future. We like selling rallies, especially at the 1.05 and 1.07 areas. The EUR/USD pair is one of the most vulnerable pairs to headline risk currently. Because of this, we can only rely on the technical set ups, and we are presently watching a downward channel. However, it should be said that this is one of our least favorite pairs to trade at the moment. Play video >>
USD/JPY fell on Tuesday again, but is at the 77 level - the same level that the Bank of Japan intervened at the other night. Because of this, traders around the world are being very tentative about shorting this pair. The trend is certainly down, and as such - this pair can't bounce it seems. Because of this, we see this as a "dead pair" for a while. USD/CAD rose to parity as traders around the world panicked during the Asian session on Tuesday. However, the markets calmed down, and the oil markets rebounded. Because of this, the CAD got a bid, falling 200 pips. This pair looks weak again, but the 0.98 level might be a potential area of support that the market will have to overcome before pushing back down to the 0.9450 area. Play video >>
USD/JPY fell on Monday as traders ran from anything risk related. The truth is that this pair is far too dangerous for us to trade at the moment, as the Bank of Japan is currently making it very obvious that they are willing to intervene yet again. In fact, they are currently talking to other central banks for help. The 75.55 area looks like it could be slightly supportive. We are currently staying out of this market until clarity comes back into play. The USD/CHF pair is in a bearish trend, and the recent price action doesn't change that long-running fact. The pair managed to bounce a bit during the latter hours of Monday trading, and formed a bit of a hammer. As such, it looks like 0.75 might cause a bounce - but we simply wait for that bounce to sell into it. We never buy the USD against the CHF. Play video >>
The AUD/USD has fallen yet again on Monday as the world's market react to the debt issues in the United States and Europe. The pair is falling hard, and has even managed to fall into the 1.01-1.02 support zone. If this area doesn't hold up as support, we are more than likely going to fall to 0.95 or so. After that - much, much farther. AUD/CAD is a battle between two commodity currencies. The oil markets are falling, yet the CAD is still gaining against the Aussie. The parity level is within our sites, and the area should end up being some kind of support. If not - this pair falls hard. The Tuesday session could be crucial in determining the future direction for the Aussie. We don't recommend trading the AUD until AFTER this session completes as we can look at what has happened, and perhaps get a clue on the next several months in Oz. Play video >>
The NZD/CHF pair has fallen quite a bit in the alst several days, and as the world is getting more and more risk-adverse, this pair will fall. The bounce on Friday makes sense, as no market goes in a straight line, but this could be a selling opportunity in the end. We are watching to see how price reacts at the 66 handle. The NZD/USD has fallen far in the last few days, and the 0.85 level has been broken. As we have bounced, we fell just short of this area. It is a crucial area for the bulls, and they simply must reclaim it. If not - we go much lower. Play video >>
AUD/NZD has been falling precipitously for some time, but has found 1.25 to be a point of consolidation. The pair is presently testing the bottom of that area, and could begin to fall again. These pairs tend to move in unison, but the Chinese are buying Kiwi bonds at the moment, and this gives the Kiwi a bit more support in general. The AUD/USD pair is sitting at the absolute bottom of the recent consolidation and trading zone. The pair looks like it is trying to give us a clear signal - either go long at the top of the Friday range, or sell at the bottom. Play video >>
The long-term charts are showing us several different things presently.... The EUR/USD almost looks like it is in a bullish flag pattern, even with all of the EU troubles in the debt markets. The potential S&P downgrade of the US might be a factor in this move, but we are still waiting to see a break of the 1.45 area to go long. If we get below 1.40 - we sell. In the meantime, we are looking for choppy short-term moves at best. The EUR/CHF continues to fall, and has broken the 1.10 area as investors keep sending their money into Switzerland, and leaving Europe. The pair shows that the EUR isn't necessarily strong, (despite the EUR/USD chart) and that perhaps it is the USD that is so weak. The USD/CAD pair skyrocketed during the week, and it appears that we will attempt a break out of the 0.98 level, but this pair is certainly in a downtrend. We see nothing to suggest that the trend will change anytime soon. Play video >>
The EUR/JPY pair was pushed much higher on Thursday as the Bank of Japan intervened by selling the Yen during the Asian session. By the time the day closed out, we saw about 90% of those gains erased. The fear out there in the markets make the Yen very attractive as it is a safe haven currency. Because of this, we think the BoJ is in real trouble, and are willing to sell rallies. The EUR/CHF continues to make fresh lows, and as such - we are selling yet again. Anytime this pair rallies - we are selling. If we make another new low - we are selling. Play video >>
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