Forex Technical Analysis
The EUR/USD pair tried to rally during the session on Friday, which you can see that the 1.31 level offered too much resistance for the second day in a row. Because of this, we have formed the second shooting star in a row, which of course is a very bearish sign.
The AUD/USD pair attempted to rally during the session on Friday, reaching as high as 1.0370 or so. However, as you can see on the chart the buyers lost steam late in the day, and we formed a wicked looking shooting star.
The GBP/USD pair originally tried to rally during the session on Friday, but as you can see gave way towards the end of the session as word got out of a Fitch downgrade of the United Kingdom from "AAA" to "AA+.”
After a wild week for the EUR/USD last week we can now look back and see some method to the madness, or at least a potential way to trade this roller coaster. The EUR/USD started the week by breaking the previous week's low, and I am sure more than a few traders went short at this point since this was at a key support/resistance area at 1.3100.
The EUR/AUD pair is currently testing the 50% level of Fibonacci. Get the Forex signal here before you begin your weekend.
After a choppy session the XAU/USD pair (Gold vs. the Greenback) closed the day higher as lower prices continued to lure Asian buyers. In addition to increasing demand for physical gold, short covering ahead of the G20 meeting helped the bulls to defend the 1333 support zone.
The WTI Crude market had a fairly decent bounce during the session on Thursday, as we saw the market break above the $88.00 level. However, the market is still fairly weak as far as I can tell, even though we sit on top of a relatively messy cluster that had formed way back in November of 2012.
The EUR/USD pair rallied during the session on Thursday, but as you can see on this chart sell at the 1.31 handle, showing that we are starting to lose a little bit of momentum in this market.
The GBP/CHF pair had an interesting session on Thursday, breaking above the top of the hammer that was formed on Wednesday. With even more interesting is that this all happened of the 1.42 handle, an area that has been supportive and resistance in the past.
The GBP/USD pair bounced off of the 1.5250 level for the Thursday session, but did give back some of its gains. The pair previously had significant resistance at that level, so the fact that it's acting like support now should be much of a surprise.