VIDEO: Forex Forecast for Feb 18th, 2011 |
EUR/USD
The EUR/USD is still stuck in a consolidation area, and seems to be waiting for a trigger to run. You can see that we are consolidating between three levels. On the 4 hour chart, it is clearer as to where we are battling.
The 1.3750 area has served as resistance, even though we popped above it for a short time recently. It should be noted that the price didn’t hold for long, and it was more like a “false breakout”. The 1.3450 area has been significant support, and there is even a third area to pay attention to now – the 1.36 handle. As such, it appears that we are going to go back and forth between these three levels. The 4 hour chart is probably the way to track this pair as we fight between these three areas.
USD/CAD
The daily bar has closed in a hammer formation, a very bullish sign. Add to that the fact that 0.98 has been very supportive in the past – and a bounce becomes quite likely. However, there are several resistance areas just above, and any bounce will more than likely be short-lived as both parity and 0.99 are strong resistance. If we can close on a daily candle below 0.98, we are more than likely going to find our way down to 0.90 ultimately.
AUD/USD
The AUD/USD is starting to form what looks to be an ascending triangle. This triangle stretches from 0.95 to 1.02, and had one small false break out previously. However, any sustained break above the 1.02 handle – and gauging by the measured move of the triangle – we could see 1.09 before it’s all over.
Originally posted here.
