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Published on Aug 22, 2016
The
EUR/USD pair initially fell during the day on Monday, but then turn
right back around to form a hammer as the market decided to bounce. I
believe that we are trying to build up enough momentum to break out and
above the 1.1350 level which has been short-term resistance. I believe
given enough time we should break above there and reach towards the 1.15
handle above. Even if we do pullback from here, I believe that the
“floor” in this market is somewhere near the 1.12 handle, and that
traders are essentially focusing on the fact that the Federal Reserve
cannot raise interest rates this year. As long as that’s the thought, I
believe that the Euro will continue to grind its way higher.
USD/JPY and AUD/USD Forecast August 23, 2016
Published on Aug 22, 2016
The
US dollar did gap higher against the Japanese yen initially during the
day on Monday, but as you can see we turn right back around to form a
slightly negative candle. What I find more important in this market is
the 100 level below, which should be a psychologically significant
number. The 100 level below is essentially the “line in the sand” when
it comes to the Bank of Japan. I think that if we break down
significantly below that level, the Bank of Japan will either intervene,
or perhaps maybe do more quantitative easing. We also could see this
market turned back around due to verbal intervention as well, so this
point in time I’m waiting to see either a supportive candle or a break
above the top of the Monday session in order to start buying and aiming
for the 102.50 level.
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