VIDEO: Forex Forecast End of Day February 10, 2011 |
EUR/USD
Looking at the EUR/USD today, we see the price has fallen fairly hard over the last 24 hours. On Monday, we formed a hammer at the 1.35 level, suggesting strong support. On Tuesday, we saw a shooting star form, which was bearish. On Wednesday we broke out, and on Thursday, we struggled as resistance has been very heavy between 1.38 and 1.40.
On the weekly chart, it appears we may form another shooting star as well. This makes three in a row, and is very bearish. However, until we break below the 1.35 level and hold – it appears this pair is going to be stuck in a squeeze of sorts.
AUD/USD
We suggested that the Aussie was losing strength yesterday as it has drifted back down from the 1.01-1.02 resistance level. Thursday’s bar turned out to prove us correct and we have now found the parity level to be supportive. It appears that the support levels far outweigh the resistance.
On the 4 hour chart, we saw a hammer at parity. Even if we fall below the “1” level, there are many other supportive levels underneath. This pair still looks to be a “buy on the dips” pair.
GBP/CHF
Monday saw an extremely bearish set up in this pair as a shooting star formed at the 1.55 level, as well as a daily trend line. However, we did speak of the higher lows being made, and that was the one thing that was cause for concern.
As you can see on the charts, we have found a couple of shooting stars this week that got broke past. Price has risen above the set of shooting stars, showing great bullish strength. Looking into the future, it appears there is a resistance level to be cleared at 1.5750 before we can hit the larger target – the 1.6000 handle.
Originally posted here.
