LeTechs Forex Blog - Forex Weekend Technical Analysis on 19 August 2016

19 Aug

Forex Weekend Technical Analysis on 19 August 2016

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Daily Technical Analysis on 19 August 2016

Today’s Technical Pairs: EURUSD, GBPUSD, USDJPY & XAUUSD.

EURUSD

EURUSD has been mounting from its post-Brexit for closely the last month low on Thursday. Much of this ascent has been attributed to weakness in the dollar, as bets on a Fed rate hike upcoming this year have regularly diminished in fresh weeks. Earlier Wednesday's release of July's FOMC minutes lost to help matters much for the US dollar, as the Fed was look as sharply different in opinion and unlikely as overall to raise interest rates in the upcoming future.

EURUSD has bumped up across the underside of a major bullish trend channel that has characterized the currency pair's uptrend from the 1.0500-region lows of previous December. Having touched the underside of this upward channel, the pair has hit few key resistances. Any turn rear down from this resistance might once again target the support levels of 1.1100 in downside. In the reversed event of any additional surge that places the currency pair rear into the uptrend channel; dominant further resistance suddenly to the upside resides over the key levels of 1.1450.

GBPUSD

GBPUSD pair broke superior throughout the course of the session on yesterday, wiping out the 1.30 level. Still, we believe that this market has quite a bit of resistance over, so it simply holds to see exhaustion that we can to get handle up. Once we get that exhaustion, it might very well be an opportunity to begin selling once again in the longer-term downwards. Although we recognize that the US dollar has been moderately weak lately, the reality is that there are a few more concerns with the UK at the moment and there are certainly the Fed raise interest rates in the future.

USDJPY

USDJPY sustained on yesterday to consolidate its recent losses and fluctuate in a stiff range right over the key levels of 100.00 psychologically support area. A mixed signal from Wednesday’s publishes of July's FOMC meeting minutes that event a different Fed have decision to a rather indeterminate pointing bias for the currency pair.

USDJPY has constant to stagnate around the major key 100.00 psychological support level, as discussed, and has done so for the last two days in the absence of any clear catalyst for an important movement. A strong potential catalyst for a definite pair breakdown under 100.00 should occur if the prospects of a short-term Fed rate hike and additional BoJ easing actions BOTH constant to be increasingly doubted by the traders. In this picture, any strong breakdown under 100.00 should subsequently start to target key downwards support objectives at the level of 97.00 & 95.00.

XAUUSD

The yellow metal markets place initially tried to rally throughout the course of the day on last day, but pulled back once again. We consider that this market is driving to try to go much higher given enough time but there is an important barrier near to the 1370 level. If we can crack over there, we think that we go much superior, but in the same time we predict a lot of volatility. However, there is enough support under to keep the buyers interested. Currently traders have no interest in selling because of that, and will simply have to be quiet .

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