EUR/USD, GBP/USD

EUR/USD has so far slipped to an August low at 1.3179, close to the September 2012 high at 1.3173, while on its way to the 1.3105 September low and the psychological 1.3000 region.

Today the currency pair is likely to stabilize, however. Resistance comes in along the breached support line at 1.3279 and around 1.3333/36 with further resistance being seen along the three month downtrend line at 1.3404. While trading below here, downside pressure should be maintained.

Current position: None. Recommended trade: Sell at 1.3335, add at 1.3400, stop at 1.3450, target at 1.3110.


GBP/USD’s swift descent has so far taken it to a four month low at 1.6543 which was made below the 61.8% Fibonacci replacement at 1.6611, the 1.6585 late February low and the 1.6558 April low. A minor bounce off the current 1.6543 August low is now being seen but eventual failure there cannot be ruled out in which case the 1.6467/54 March low and 78.6% Fibonacci replacement will be targeted. Longer term we look for losses back to 1.6000. Minor resistance comes in around the accelerated downtrend line at 1.6680 and also along the 200 day moving average at 1.6682. While capped by it, GBP/USD will remain directly offered.

Current trade: Square. Recommended Trade: Sell at 1.6645, add at 1.6680, stop at 1.6740 and target at 1.6475.

GBPUSD Monthly forecast, August - September (updated 08/26/14)

Main situation:
The pair is trading along an downtrend.
The downtrend may be expected to continue while pair is trading below resistance level 1.7040, which will be followed by reaching support level 1.6720 and if it keeps on moving down below that level, we may expect the pair to reach support level 1.6320.

Alternative situation:
An uptrend will start as soon, as the pair rises above resistance level 1.7200, which will be followed by moving up to resistance level 1.7500.

Monthly forecast, August - September (updated 08/25/14)

Main scenario:
The pair is trading along an sideways trend.
An uptrend is already started from support level 1287 -1282, which will be followed by moving up to resistance level 1327 and then to 1360.

Alternative scenario:
An downtrend will start as soon, as the pair drops below support level 1282, which will be followed by moving down to support level 1250.

Weekly Forex Market Forecasts for Aug 25th - 29th

 Levels to Watch for the Majors This Week ;

 

1. EURUSD: Mildly Lower

2.USDJPY: Mildly Higher

3.GBPUSD: Lower

4.AUDUSD: Mildly Higher

5.USDCAD: Mildly Lower

GBPUSD stand Risk for 1.6610

GBPUSD downside additional room bias

A very low level digestion Thursday of the push lower still capped by minor resistance at 1.6680 and ahead of better barriers at 1.6740 to leave bear pressures intact Friday and for latter August.

·  The Tuesday plunge through the 61.8% retrace of the 2014 up leg at 1.6610 opened downside risks to the April swing low at 1.6555.

·  Overshoot risk is still lower, maybe chart/ retrace targets at 1.6460/55

EUR/USD rejected near 1.3300

Empty docket in Euroland on Friday will leave all the attention to the Jackson Hole Symposium and the speeches by Chairwoman Yellen and ECB’s Draghi. After hitting multi-month lows around 1.3250, spot is looking to somehow reverse the current deep pullback although the sentiment surrounding the EUR remains tilted to the downside. In the view of Quek Ser Leang, Market Strategist at UOB Group, “the downside extension target highlighted at 1.3240 was met yesterday. The rebound suggests that we have likely seen a temporary low and EUR is expected to trade sideways from here. Allow the current recovery to extend towards 1.3310 but this should lead to a pullback to 1.3250 for an overall consolidation phase”.

EUR/USD key levels

The pair is now flat at 1.3281 with the next resistance at 1.3297 (high Aug.22) followed by 1.3324 (high Aug.20) and finally 1.3364 (high Aug.19). On the downside, a breach of 1.3242 (low Aug.21) would expose 1.3230 (low Sep.10 2013) and then 1.3157 (low Sep.9 2013).

EUR/USD Morning Technical Report 22/8/2014

On the above graph, we notice that yesterday's bullish rebound remained limited below Linear Regression Indicators around 1.3300, and trading below the referred to level is negative today. Despite that Risk/Reward Ratios are still inappropriate, we bet today on a downside move and place the stop-loss of our expectations intraday above 1.3320, so the risk is reduced targeting again 1.3230.

From the downside, breaking 1.3230 leads to further bearishness intraday today. Of note, failing to break the support represented in 61.8% correction forces us to close our selling positions.

About Forex

Forex Trading is trading currencies as of unlike countries against each other. Forex is short form of Foreign Exchange.

For example, in Europe the currency in circulation is called the Euro (EUR) and in the United States the currency in movement is called the US Dollar (USD). An example of a forex trade is to buy the Euro while concurrently selling US Dollar. This is called going long on the EUR/USD.