The following are the most recent pieces of Forex technical analysis from around the world. The Forex technical analysis below covers the various currencies on the market and the most recent trends, technical indicators, as well as resistance and support levels.
Forex Technical Analysis
Forex Technical Analysis
In line with the general strength in the Australian Dollar, the AUD/JPY pair appreciated about 800 pips since the mid-August. Recently, however, this advance stalled and the price settled in sideways pattern, with a ceiling at 81.50.
On Tuesday, the USD/CHF continued its sell off, reaching as low as 0.9735. Interestingly, that was reported in numerous media outlets as the all time low. Not far from the truth, but this happens to be an error. The all time low in this pair is 0.9635, established March 2008.
Monday turned out to be a very quiet day for currencies. At least by comparison, to the last couple of weeks. One of the best examples of just how lifeless markets became is the GBP/USD.
The Euro has staged a good size rally recently. Not a narrow one, limited to just one pair, but rather across the board, showing against most of the major currencies. This includes the EUR/CAD cross, which advanced about 800 pips during the last two weeks.
There is a possibility of a double bottom chart pattern in GBP/CHF. A confirmation is needed, preferably a strong bullish candlestick formation. On the other hand, a decisive close under the 1.5375 previous low, would make the double bottom invalid.
GBP/USD (Cable) is still keeping up once again its range, today it has already tried the 1.5705 top 3 times and it seems that this resistance is holding well the pair within the range.
The Japanese Yen has been grabbing the headlines lately. Main reason – the long threatened intervention by the Bank of Japan. It targeted the 15-year low in USD/JPY, which, at that time, was at 83.00. This action managed to push the rate to 85.90 in a short order.
On this weekly chart of the AUD/USD, we can see that the price remains well above the major up trendline, as well as the newer, steeper trendline, which is drawn through the low from June.
In response to the Bank of Japan intervention in the Yen last week, all of the JPY pairs moved up sharply.
The GBP/AUD is still dominated by a downtrend. On the intermediate term chart, the most visible feature is the sharp selloff in August and September, which pushed this pair from 1.7560 down to 1.6440. However, this may be ending soon.
The New Zealand Dollar has been in an uptrend for the last few months in relation to the US Dollar. Since May, it has appreciated from 0.6560 to 0.7390. It had reached this level twice, most recently earlier this week and is now pulling back.
EUR/CAD pair started to build a trading channel that by now is very well defined. This channel is drifting down, and about to meet the main up trendline, with a starting point at the 1.2450 low.
Much to a surprise of many traders, the Euro has been very strong recently. It rallied against many other currencies, in many cases reaching important resistance levels, where next price swings will be decided. The EUR/GBP pair is at just such juncture.
Financial markets, including the currencies are having hard time finding direction.
Recently, the Swiss Franc has benefited greatly from its perceived status of a “safe haven”. This currency has been very strong, reaching an all time high against the Euro and marking major gains in relation to other currencies.