The EURUSD pair initially fell during the day on Friday, but found enough support below to turn things back around and form a hammer. The hammer of course is a very bullish sign and it is sitting just below the 1.15 level which we think is a sign that the trend changes. Above this level we feel that the market will be very bullish.
The EURUSD pair broke higher during the course of the week, clearing the top of the shooting star from the previous week. Because of this, we feel that the market is going to test the 1.15 level, and once we get above there the complete trend has changed. We feel that this currency pair will be bullish in the coming week.
The AUDUSD pair fell during the course of the day on Friday, testing the 0.80 level. Ultimately though, we ended up bouncing enough to form a nice-looking hammer and it appears of the market is going to continue to go higher. The US dollar continues to soften in general, so it makes sense that this market should continue to go higher. The market has recently broken out above the 0.80 level, and we are now testing that area for support which of course appears to be coming into the marketplace.
The AUDUSD pair tried to break out during the course of the week, and closed above the 0.80 level. This reason is enough to make an opinion that market will start going higher. The fact that we cleared the 0.80 level is a very positive sign, and we do recognize that breaking the top of the previous week’s shooting star as well as the one before that is a very strong sign also. This shows that market will head towards 0.85 level.
The GBPUSD pair tried to rally during the course of the day on Friday, but found the 1.58 level to be a bit resistive. However, this market does look like it’s going to be bullish overall for the longer term, and with that we are buyers on dips. Above 1.58 level we would start buying as we get a supportive candle at this level. We do not see potential in selling this market.
The GBPUSD pair broke higher during the course of the week, touching the 1.58 level. We did pullback a little bit from there, but at the end of the day it does in fact look like we are going to go higher. If we can get above the 1.60 level, we feel at that point the market should continue to go much, much higher.
The USDJPY pair initially tried to rally during the course of the day on Friday, but found the 120 level to be too resistive. Because of this, we feel that the market continues to consolidate, and with that we are playing in the range between the 118.50 level on the bottom, and the 120.50 level on the top. The market continues to be very confused, so therefore we anticipate seeing quite a bit of volatility in the near term.
The USDJPY pair had a slightly negative candle for the week, but at the end of the day we’re still just consolidating in the same range. Because of this, we have no long-term set up available right now. Ultimately, we believe that this market does break out to the upside, so we look at pullbacks as potential buying opportunities, but currently are placing long-term trades. Short-term range bound traders might be able to take advantage of this market, but that’s about it at this moment as we simply grind.
Forex Technical Analysis Outlook & ForecastPosted: May 18, 2015 in Forex