Abe’s Daily Outlook
By Mike Conlon | July 29, 2010
Abe Cofnas has been analyzing the Forex market for years. Here is his outlook for today’s action in the Forex market.
USDCHF - This pair is in a retracement from a low of 1.0396 to a high of 1.0641. It is probing a 50% retracement level. A break of 1.0518 is a key support point. A break of 1.049 would be a major sell signal.
USDCAD - The Loonie is in a strengthening pattern with Resistance at 1.04 and Support at 1.025. The outlook is a resumption of the strengthening of this pair. Going countertrend poses more risks. If Resistance or Support is broken, traders need to reassess the direction, but need to wait until confirmation of any breakout of this pattern.
USDJPY - The Dollar Yen is in a sideways slightly bullish pattern. The 4 Hour Resistance is 88.16 and Support is 86.81 with Outer support at 86.35. Technical sentiment is choppy here and this pair offers more difficulty trading today.
EURUSD - Sentiment is very bullish with momentum pushing this pair beyond resistance at 1.3049. The critical factor today is whether the EURUSD stays above this point. Buyers beware and need confirmation that the run up will be sustained. Sellers will need to be careful NOT to anticipate a reversal, but to confirm it.
GBPUSD - The Pound Sterling is in a sustained upward channel. Notice that the slope of the Bollinger Bands is up. The outlook for a reversal is dangerous. Bulls and Bears should be focused on Inner Support at 1.555. A breakdown here will attract sellers.
AUDUSD - The Aussie dollar pair is biased to the upside but in an interim sideways channel. Support is at the Lower Bollinger Band of the 4 hour which coincides with the 38.2 % retracement of the Low of .8632 to the recent high of .9075. Resistance is at .9075 and the outlook is a test of Resistance. A retracement below 0.8906 will signal further weakness
Tags: aud-usd, bollinger bands, eur-usd, forex, gbp-usd, sentiment, usd-chf, usd-jpy
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