The EURUSD pair had a negative session on Friday as it broke below 1.12 level. With this we feel that EUR may go much lower. This pair will be very choppy at the moment so we will continue to observe it as to enter in this market at the moment may be risky.
Forecast: Initially this week EURUSD broke clearing 1.15 level. This area was resistive and offered the longer term opportunity to the upside. Breaking below 1.12 level can take the pair much lower. Overall we can say that this market is highly volatile so we must play safe for the coming week.
GBPUSD fell during the day on Friday but found enough support to turn this back. This shows that the market may break upside but there is the uptrend line that has been resistive for this pair. We have to wait for the selling candles to re enter into this market to continue selling.
Forecast: The GBPUSD pair initially tried to rally during the course of the week, testing the 1.58 level. This is an area that has been resistive in the past, and then as a result the sellers of course were attracted to it. GBPUSD ended up crashing through the 1.54 level during the course of the week, and more importantly through the bottom of the uptrend line that had been supporting this market for some time now. With this we believe that the market will be volatile so we have to opt for short term trading.
AUDUSD initially fell during the day on Friday, but as you can see turned back around to form a nice-looking hammer. That hammer of course signifies that we should go higher, but we also recognize that there is a lot of noise just above. With this, and the fact that the gold markets look a little bit tight, we feel there might be a short-term buying opportunity, but nothing more than that. We would prefer to stay on the sidelines as this market is risky at the moment.
Forecast: AUDUSD fell slightly during the course of the week, but essentially went nowhere. We recognize that this market is negative overall, but it looks like it’s consolidating in this general vicinity. Once we break down below 0.7040 level then possibly we can go much lower.
USDJPY rose during the course of the session on Friday as we continue to see strength in this pair. The pull backs will be the sign of buying opportunities. We believe that eventually this market will head back to the 125 level. We do not see potential for selling this pair.
Forecast: USDJPY fell significantly during the course of the week, testing the 116 level. The market looks as if it is ready to continue the upward momentum. The 125 level above is massively resistive, and if we can finally break above there it would be a longer-term “buy-and-hold” type of situation. We believe that this market will give lot of buying opportunities and though we will not short this pair at all.
FOREX Technical Analysis Review & Market ForecastPosted: August 31, 2015 in Forex