The EURO/USD initially fell during the bulk of the session on Monday, testing the 1.18 level for support. With that, the market looks as if it bounced from there based upon significant buying pressure and a hammer is formed for the third day in a row which is very rare to see in the Forex markets tells us that there is a massive amount of buying pressure entering the marketplace. With that, we believe that the EUR/USD pair is going to continue to go higher, but it will obviously be very messy in this general vicinity because it is a counter trend trade, and quite possibly a trend change. As of now, we are long.
The GBP/USD initially fell during the course of the session on Monday, but found enough support to turn things back around and formed a nice-looking hammer. With that, we believe that this market is getting ready to bounce and perhaps head to the 1.53 level next. Above there, we then head to the 1.55 level. This market is starting to show signs of significant support, which of course makes sense as the 1.50 level below is a large, round, psychologically significant number. As of now, we have no interest in selling.
The AUD/USD fell during the course of the session yesterday, but found enough support at the 0.8150 level to hang about. With that, if we can break down below the bottom of the range we feel that this market should then go down to the 0.80 level. That level itself is a massive support barrier on the longer-term charts, so because of that we would not be selling massive positions. In fact, we are much more comfortable buying close to that level on supportive candles in selling at this point of time.
The USD/JPY initially tried to rally during the course of the day on Monday, but then turned back around to form a massive shooting star. Because of this, it appears that the market is ready to continue falling, but we have no interest in selling this market. After all, it is in a massive uptrend and we believe that the 115 level below is going to be extraordinarily supportive. A supportive candle at a lower level is an invitation for us to start buying again, as we believe this market will eventually break out.
FOREX Market Technical Analysis 13th JanPosted: January 13, 2015 in Forex