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The AUD/JPY pair skyrocketed on Thursday as the Bank of Japan intervened in the Forex markets by selling Yen. However, within 18 hours - the markets melted down around the world, and the markets bought the Yen hand over fist. Because of this, we ended up with a shooting star. The hammer that was formed on Wednesday shows the next massive support level. If we can break below the hammer - we are sellers. The AUD/USD pair is currently testing the 1.04-1.05 support level after a brutal sell off on Thursday. With this move, we are looking to sell if we can get to 1.0375 or so - aiming for the 1.02 support level. If not, we could always see a supportive candle in this area, but large negative days like we have seen this week almost never happen in a vacuum. Play video >>
The GBP/USD pair shot straight up on Wednesday, confirming the bullish hammer on Tuesday. The pair is just under the 1.65 area, which should serve as a form of resistance. The pair could be bullish, but we only feel comfortable once a daily close above 1.65 happens. Until then, we expect choppy trading conditions. GBP/CHF shot up as well, but mainly because the Swiss National Bank decided to cut rates in order to make the Franc a little less attractive to traders. The bounce was short-lived though, as traders began to short this pair again after the surprise move. This shows exactly how weak this pair really is. We are still happy with selling rallies. Play video >>
The AUD/USD pair fell again on Wednesday, but managed to bounce from the lows to form a hammer on the daily chart. Add the fact that the pair did this at the 1.0750 support area, this looks as if the pair is going find buyers in the near term. The pair could make a run towards 1.10 on a break of the Wednesday highs. The AUD/NZD pair is forming the same type of candle on the daily chart as well, but just under a resistance line. Because of this, the AUD looks stronger - but we don't like taking this trade unless we get a daily close above the 1.25 handle. If we break below the 1.23 area - this will be a very bearish sign. Play video >>
EUR/CHF has absolutely fallen apart again. However, selling here is only chasing the trade. We are waiting for a bounce to sell from, and until we get it - this trade will be difficult to trade. The EUR/NZD pair has been falling rapidly over the last several months. The pair actually bounced today, and looks ready to test the 1.65 area, which is a natural area for resistance to come into play. Play video >>
AUD/CHF is a great barometer of global risk. It is because of this that the move lower and under 0.85 isn't surprising. More importantly, the pair has now broken massive support. We like selling, but are waiting to see a bounce to sell as selling at this point is certainly chasing the trade. AUD/USD fell on Tuesday as well, and has gone through the 1.07 level, a massive support area. Although the area looks supportive, it should be noted that the daily candle is closing right at the lows - never a good sign. We are waiting to see if there is any signs of support between 1.0750 and 1.08. Play video >>
EUR/USD fell on Monday, even after popping higher. The low on Monday could be a place in which more selling gets triggered as the pair will almost certainly switch focus from the US debt deal to the European bond issues once the bill is signed in DC. The EUR/CHF par fell off of a cliff on Monday, but did manage to bounce. The 1.10 was nearly tested, and it seems that we will almost certainly see that level again. The bounce should be nothing more than another selling opportunity, and as such - we are waiting for some kind of rally - assuming this pair can do that. Play video >>
The USD/JPY pair had a wild day during the Monday session as traders are trying to figure out the debt limit issues in the US. A deal looks to have been reached, but we have not voted on it yet. A break either side of the long volatile doggie bar will help identify which side to trade, but be careful going long on this pair as Japanese intervention might make it difficult for the pair to fall considerably. The USD/CAD pair continues to bounce from the 0.9450 area, which is probably unsurprising to many as the oil markets have been so wild. The pair looks like a great sell - but from higher levels such as the 0.97 and 0.98 handles. Play video >>
NZD/USD skyrocketed on Friday after falling earlier in the day. The pair is overbought, but we certainly do not want to stand in the way of this freight train which is the long term trend we see in this pair. The GBP/USD rose on Friday, but is presently running into trouble at the 1.65 level. As we look at it, this pair looks like a prime candidate for a choppy market, bouncing between the 1.65 and 1.63 levels. We think this pair will only offer short-term opportunities for the immediate future. Play video >>
The USD/CAD spiked on Friday as the oil markets fell. This certainly will have an effect on the CAD strength, so the sell off wasn't a surprise. Also of note is the fact that the pair struggled to get above the 0.96 area, a place we suggested that resistance could come into play on a move up. We expect there to be another push, but more than likely that will only be a selling opportunity, especially if we can get to 0.97 or so. The AUD/USD fell on Friday, but ended up finding support at 1.09, and so much so that it formed a hammer. This is a very bullish sign, and we believe that not only will the 1.09 level hold as support, but even if it does give way - the 1.08 is just below to keep things afloat. On a break of Friday's high in this pair - we will buy. Play video >>
The EUR/USD has formed what could be considered a bullish flag. However, there are many issues in Europe that are managing to stay out of the headlines, such as the rates in Italy and Portugal's bonds going back to the pre-deal levels in Europe. The EUR/CHF pair is absolutely horrible looking. The pair has found itself testing 1.13, which is 1,000 pips from where it started July. This pair continues to fall, and looks like it will reach 1.10, and then probably make a run towards parity. The USD/CHF pair has finally broken the 0.80 mark, and now looks to run to 0.75 as the debt talks in DC continue to hamper the USD......add to that this pair is in a massive downtrend, and we won't be buying it anytime soon! Play video >>
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