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Check out what’s going on in Forex today!
By Mike Conlon | July 30, 2010
Once again we are fortunate to have Abe’s insight into the Forex market. Enjoy!
This Friday morning we have some important patterns emerging. I like to form a daily outlook using a 4 Hour chart because it provides a good combination of “big picture” perspective as well as enabling our “thumbs on the pulse” of the market. So let’s get started:
USDCHF
Dollar weakness is the focus today and we see the battle lines are right on the key support at 1.04. Its best to get a confirmation of either a bounce off support or a break down before one anticipates what will happen.
EURUSD – Bearish facing test of Inner and Outer Support
Technically, the action is clearly on the side of the bears. But the key is confirmation. We have a fuzzy barrier of Inner support at 1.2980. Its fuzzy because there are a lot of candlestick “tails“ there. This means the market is not drawing a line in the sand on Support. It actually tested the Outer Support at 1.2953. Tactically, the interesting situation will be a break of Inner Support with a target to Outer Support. Also, a failure at 1.2980 could generate a bounce condition.
GBPUSD – BULLISH BUT TIRED
The technical trading conditions for the GBPUSD is more challenging this morning. We have a sloppy sideways channel between support at 1.5545 and resistance at 1.5666. It’s really not clear in either direction. But a breakdown at 1.5545 puts this pair into a sell zone.
AUDUSD - SELL ZONE EMERGING
Notice a descending triangle showing compression on the 4 hour chart. A confirmed breakdown at .8975 will put this pair into a sell zone. This presents us with a 75 pip trading range if the breakdown occurs.
USDJPY - Dollar Weakness May Be Over
The Yen is showing strength against the dollar, but it’s not a decisive line of Support at 86.33. The action outlook is a battle at this line. Bounces above it will confirm a buy opportunity, but an inability to stay above 86.5 gives bears permission to sell the USDJPY pair. Watch this one closely!
USDCAD- INDECISION
On the Loonie we have a clear indecision. It a tight sideways channel and inside it is an equilateral triangle forming. This means we just have no clear direction. Until the USDCAD pair breaks out of this range, trading is difficult.
Tags: aud, cad, eur, forex, gbp, jpy, usd
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