The EUR/USD fell initially during the session on yesterday, but found enough support to turn things back around and formed a little bit of a hammer. With that, the market should continue to be very choppy, as we continue to consolidate between the 1.13 level on the bottom, and the 1.15 level on the top. We have no interest in trading this pair as of now until we see any opportunity to trade.
The GBP/USD broke higher during the course of the session on yesterday, clearing the top of the hammer from the Tuesday session. As the 1.55 level comes within reach, we will see a significant amount of resistance as it was previously support during the month of December before we fell down to the 1.50 level. Even if we break above there, the resistance extends to the 1.58 level. Because of this, the market should offer some type of selling opportunity between here and there.
The 1.50 level below is massively supportive, and we believe that it will break down below there, as the 1.48 level is the bottom of that particular support area. Because of this, the market looks ready to bounce around between the 1.55 and the 1.50 level.
The AUD/USD fell during the session on yesterday, but found a little bit of support near the 0.7750 level to form a hammer. The hammer suggests that the buyers are going to come back, but we believe that there is absolutely no way that we can go long of this market. The 0.80 level above should be massively resistive, and as a result we are looking for some type of resistant candle in order to start selling again. We believe that the market will head back down towards the 0.76 level given enough time.
The USD/JPY tried to rally during the course of the session on yesterday, but fell at the 119.50 level. With that, we feel that the market continues to grind away in this general vicinity, so it’s only a matter of time before we go long. We look for supportive candles on short-term charts in order to go long, and aim for the 120 level. As of now, we have no interest in selling because we see there is so much in the way of support below. With that, this is essentially a “buy only” market.
The NZD/USD initially fell during the course of the session on yesterday, but found enough support at the 0.75 level to turn things back around and formed a hammer. The hammer is a very bullish sign but we recognize that there is massive resistance above, especially at the 0.7650 region. With that, we are simply waiting for a selling opportunity above in order to get short of the Kiwi dollar, and have no interest in buying this market as the trend is most certainly still to the downside.
Forex Technical Analysis Report 19 FebPosted: February 19, 2015 in Forex