AUD/USD Forecast December 7, 2016, Technical Analysis

The AUD/USD pair fell during the day on Tuesday, as we continue to see quite a bit of resistance near the 0.75 handle. A break down below the bottom of the candle should continue to send this market lower. I believe that the market will then reach towards the 0.73 handle. Pay attention to gold, because as it falls it should continue to put significant pressure on this market. I believe that the 0.75 level should continue to be massively resistive and act as a “ceiling” in this market. If we do break above there, then we need to aim for the uptrend line above.

EUR/JPY Forecast December 7, 2016, got technical Analysis

The EUR/JPY pair initially rallied on Tuesday but turned around to form a shooting star. I believe that the market is a bit overdone, and because of this we need to find buyers below to turn things back around and continue the uptrend. I think that the 120 level is essentially the “floor” in this market, so if we can pull back and find buyers in that area, I would be quick to go long. I have no interest in shorting, because I recognize that the Japanese yen itself is massively negative.

EUR/USD Forecast December 7, 2016, Technical Analysis

The EUR/USD pair initially rallied on Tuesday, but turned around at the 1.08 level. This is an area that has seen some resistance in the past, and should now continue to fall from here. The market reacted that quite out of sorts after the Italian referendum. This is a market that has been desperately negative for some time, and that has not changed. I believe that the market should then go to the 1.05 level, which is massively supportive. If we can break down below there, things get ugly. I have no interest in buying.

GBP/JPY Forecast December 7, 2016, Technical Analysis

The British pound initially rose against the Japanese yen again during the Tuesday session, but turned around to form a shooting star. He come of this, I believe that the 145 level is going to continue to be resistive, at least for the time being. If we can pull back from here I think we will find quite a bit of support underneath, especially near the 140 handle. This is a market that needs a bit of a pullback to find value so that we can continue to go higher. Now that we have broken above the downtrend line, I feel that it’s easy to go long, and dangerous to go short.

GBP/USD Forecast December 7, 2016, Technical Analysis

The British pound initially tried to rally on Tuesday but found enough resistance above to turn things around and form a bit of a shooting star. Because of this, it’s likely that the markets will break down from here and perhaps try to find buyers below. What I find particularly interesting is that the area that we turned around that is the 50% Fibonacci retracement level. Because of this, I believe that the market will attract a certain amount of sellers anyways. I think will probably reach towards the 1.2550 level, or maybe even 1.26. At this point, the channel still remains intact, so it’s likely that we will find support below. Ultimately, it’s probably only a matter time before we break down significantly but I’m not overly concerned with going long anyway. I believe that the market will continue to worry about the accident of course more importantly at this point, the possibility of the Federal Reserve raising interest rates several times.
There will be a lot of aches and pains with the withdrawal of the day kingdom from the European Union, so I think that it makes quite a bit of sense that the British pound will be able to take off completely. Because of this, I think that these pullbacks will continue to be very interesting. If we can break down below the 1.25 level, at that point I think that we will go much lower. Although we have had a nice bounce, the reality is that just 2 years ago we were and the 1.74 level, and as a result we are still very much in a downtrend. I believe that we will have quite a bit of volatility, but I believe that any point you can have a sudden turnaround and a collapse. Because of this I am not comfortable buying. I think that when this pair breaks to the upside, you may want to look at the GBP/JPY as a bit of a proxy for this pair as at least you can make a serious argument for the Japanese yen falling over the longer term as opposed to the US dollar.

NZD/USD Forecast December 7, 2016, Technical Analysis

The New Zealand dollar fell during the day on Tuesday as the previous uptrend line continues to offer resistance. Because of this, we are going to continue to go back and forth with a bit of a negative attitude. I think that we will reach towards the 0.70 level below, which has been massively supportive. If we break down below there, the market is likely to go even lower. A break above the previous uptrend line should be a strong sign, but until we get a daily close above that line, I believe that negative trades are about all he can take.

USD/CAD Forecast December 7, 2016, Technical Analysis

The US dollar went back and forth during the day on Tuesday, showing signs of support below. The 1.32 level is massively supportive, so we can break above the top of the candle for the session on Tuesday, we should continue to go higher, perhaps reaching towards the 1.35 level above. I believe that the market will continue to go higher if the oil markets can roll over, which of course has the Crude Oil Inventories number coming out. Ultimately, I have no interest in selling this market as I see so much in the way of support and noise underneath.

USD/JPY Forecast December 7, 2016, Technical Analysis

The USD/JPY pair was very choppy over the course of the session on Tuesday, but did find a bit of a bullish sign. A break above the 115 handle is what’s needed for a continues move higher at this point. However, I believe that the market needs to pullback to build up any true momentum, so I’m looking for a supportive candle underneath to go long. I think that the 112.50 level is supportive, and a certainly think that the 110 level will be as well. Given enough time, there should be value that we can take advantage of.

EUR/GBP Forecast December 7, 2016, Technical Analysis

The EUR/GBP pair initially fell during the day on Tuesday, but turned around to form a hammer. On a break above the top of the hammer, the market will trying to dig into the massive noise all the way up to the 0.87 handle. An exhaustive candle above is a selling opportunity and that’s exactly on going to look at it. I have no interest in buying, I believe that it is going to be very difficult to continue to go higher. If we break down below the bottom of the hammer would be a selling opportunity as well.

AUD/USD Forecast December 6, 2016, Technical Analysis

The AUD/USD pair fell slightly at the open on Monday, but turned around to reach into the previous resistance. The 0.75 level above should be massively resistive, and as a result I’m waiting to see whether or not we get an exhaustive candle. We also have the uptrend line that had previously been so supportive on the chart, so I feel that it’s much easier to short this market been buying it. With this, I’m waiting to see whether we get an exhaustive candle that we can start taking advantage of the recent bearish pressure.

EUR/GBP Forecast December 6, 2016, Technical Analysis

The EUR/GBP pair initially dipped on Monday, but turned around to form a strong candle to the upside. I think that this is the bounce that we have needed to see to have a little bit more of an orderly selloff. I believe that this rally will offer a nice selling opportunity on signs of exhaustion, and that’s exactly what I’m waiting for, and exhaustive daily candle. Ultimately, this is a market that features a couple of soft currencies, but I still believe that the Euro is in much more danger than the British pound.

EUR/JPY Forecast December 6, 2016, Technical Analysis

The EUR/JPY pair gapped lower at the open on Monday but then turned completely around to form a massively bullish candle. Because of this, looks as if this market is going to continue the uptrend that we have seen for some time, and buying is the only thing you can do. It’s obvious that the 120 level should be supportive going forward, and because of this I think that pullbacks are going to continue to offer value that you can take advantage of even though I don’t like the Euro itself. This pair is all about the Japanese yen.

EUR/USD Forecast December 6, 2016, Technical Analysis

The EUR/USD pair had a very bullish turn around during the Monday session, as we initially sold off and reached towards the 1.05 level. We found plenty of support there, possibly from the European Central Bank, and then shot towards the 1.0725 level. Ultimately, this is a very bullish candle that should send this market to the upside, but given enough time I think the sellers are coming back given enough the massive downtrend. Because of this, I’m going to sit on the sidelines and wait for the surprise rally in response to the Italian referendum to wear off, so that I can take advantage of what is obviously a strong move lower over the longer term.

GBP/JPY Forecast December 6, 2016, Technical Analysis

The GBP/JPY pair rallied on Monday, as we continue to see quite a bit of bullish pressure. We are testing the 145 handle, and quite frankly I think that every time we pullback, there should be plenty of buyers going forward. I think the 140 level is essentially a “floor” in this market, and as a result I feel that every time we pullback you have to start thinking about buying again as the Japanese yen is on its back foot, and quite frankly will continue to be for the foreseeable future.

GBP/USD Forecast December 6, 2016, Technical Analysis

The GBP/USD pair initially dipped at the open but found enough support to continue to push against the 1.27 handle. If we can break above there, I think the next area that were going to test of the 1.2850 level. That’s an area that I think should continue to be important as it used to be support, and it should now be resistance. An exhaustive candle at that area should be a nice selling opportunity as we continue to expect interest-rate hikes out of the Federal Reserve, while the British of course are not going to be raising rates anytime in the foreseeable future.