VIDEO: Forex Forecast End of Day, February 14th, 2011 |
EUR/USD
The first pair that we will be looking at today is the Euro against the US dollar. As you can see, the 1.3500 area is still holding up as a battleground to determine the future this pair. Today's action saw a strong move down below the 1.35 area, only to be turned around and repelled yet again.
During the US session, the Euro has gained and has managed to stay above the 1.35 level on the close. Looking at the daily candle, you can see that we have formed a doji, which perfectly describes how this pair has been behaving. We simply have had mass confusion and fighting at the 1.35 level recently. Normally this type of bar will signal a decision to be made in the near future, with a break below being the stronger of the two signals as the weekly candles have all been fairly weak. A break above would suggest that we are going to continue to consolidate for a while.
USD/JPY
On the USD/JPY we are starting to see a little bit of a bottoming pattern as the polls are starting to step in with more aggression. A couple of weeks ago, we had formed a hammer at the 0.82 handle that showed strong support.
We had broken above the 83 handle, and formed a shooting star. If we can break above this shooting star, this would be a very strong buy signal. Until then, any fresh longs should probably be avoided.
NZD/USD
The New Zealand Dollar has been in consolidation for several weeks now, with the 0.7500 handle being massive support. On the other side, you can see that 0.78 is massive resistance. There is nothing in this chart that leads me to believe that we are about the breakout of this consolidation to the downside. In fact, any time the pair has reached the 0.7550 level or below, it has been a perfect buying opportunity. Until we break below the 0.75 handle, this pair seems to want to consolidate with a bullish bias.
Originally posted here.
