AUDUSD Forecast

The currency pair started the day dropping till the 0.89455 level which is a significant support level on the hourly chart. That being said, I would recommend a BUY for this currency at these levels; 0.89455, 0.89770, and 0.89900. The first resistance level would be at 0.90150, followed by 0.90548, and 0.90918. If you had followed my previous posts, my ultimate target price for this currency pair is 0.90918. Given that the currency has hit a significant support level on the hourly chart, a BUY would be strongly recommended. On top of that, there is a large trading volume at the support level of 0.89455, thus making it a good time to buy this currency pair.

August 26 Technical Forecast (AUDUSD, USDJPY)

AUDUSD Forecast

As covered in previous post, this currency pair is currently in the consolidation phase as prices hovers around 0.89421 and 0.90372. Despite so, there is a very strong support at 0.89812, and this has been further confirmed by yesterday's price action, where there is a surge in price at 0.89812, along with a large increase in volume. However, there is a also a significant resistance at 0.90372. That being said, I would expect this currency pair to trend up next week given that Ben Bernanke will not be attending Jackson Hole symposium 2013 today, probably indicating that there will not be any significant news being released over the weekends. 

Based on fundamental analysis, the 20-period SMA has crossed the 50-period SMA, but has much remained flat. Nevertheless, a downtrend reversal is very likely since the market closed at the support level of 0.90125, where there has been several Dojis forming at this area. 

USDJPY Forecast

This is one of my favourite currency pair. There was a sharp drop in the price of this pair yesterday, accompanied with a large volume traded. This is probably due to the psychological resistance level of 99.00 causing the drop. The pair corrected itself from 98.479 to 98.471, with the market closing at 98.677. While the 20SMA has yet to cross the 50SMA, the drop in price along with correction to 98.471 and closing at 98.677 indicates that a downtrend looms ahead of this pair. A short position for this pair would be good when the markets open on Monday as the market corrects and prepare itself for the downtrend. 

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Before the week ends, I would like to conclude that most of the major pairs are in the consolidation phase and I do not recommend a BUY or SELL. I would recommend that if you have any open positions, please close them as there might be a possible trend reversals for most of the pairs next week. 

Also, do note that there would be a major event next Friday, where the Fed would be having their meeting at Jackson Hole. Enjoy your weekend guys!

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For this post, I will be discussing about the AUDUSD currency pair.

Recently, this pair has ended its downtrend after the US released its Unemployment claims data. It failed to meet the expectations of analysts as the actual unemployment claims were 336,000, while analysts expected 329,000. It is also more than the unemployment claims data released previously of 323,000. That being said, it sent this currency pair along with other major pairs into consolidation phase as market participants are probably hesitant whether the US economy is improving as expected due to the tapering of the Quantitative Easing. Fundamentals aside, the H1 chart shows that this pair is in the consolidation phase as prices hovers around 0.89905 and 0.90431.

As the price is now nearer to the 0.89905 mark, I would recommend a buy for this currency pair as the 20-SMA has crossed the 50-SMA, signalling a BUY for this pair.

Due to the market's uncertainty of the conditions in US, I would recommend a TAKE PROFIT at 0.90431.

It has been quite some time since I have updated my blog. But since I have finished my exams, I will start posting once again! Hurray! Anyway, please follow me on twitter @fx_warrior.