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Published on Aug 19, 2016
The
Euro fell during the course of the day on Friday, breaking down as the
1.1350 level above has offered far too much resistance. The 1.13 level
below is massively supportive from the short-term perspective, but quite
frankly I feel that the real “floor” in the market at this point in
time is the 1.12 handle. With this, I expect a little bit of volatility
in this pullback could be an opportunity for the market to try to build
up enough momentum to break out to the upside. It will be volatile, and
we are in the late summer months which of course means that we are in
holiday season so volatility will probably be somewhat muted. With this,
I believe that short-term pullbacks offer short-term buying
opportunities.
USD/JPY and AUD/USD Forecast
Published on Aug 19, 2016
The
USD/JPY pair went back and forth during the course of the day on
Friday, as the 100 level offers quite a bit of support. Ultimately
though, I think that this is more or less a psychological barrier, as
well as a potential “line in sand” by the Bank of Japan. That being the
case, the market looks like it could very well find this area to be
difficult to break down below. I think we need to clear the 99 handle in
order to show real conviction to the downside but there is always going
to be concerned about the Bank of Japan either intervening, or doing
more quantitative easing. They are not amused by the value of the
Japanese yen at the moment, so I do think that sooner or later they do
something. A break above the top of the candle during the session on
Friday could have this market reaching towards the 101.50 level.
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