Daily Forex Technical Analysis by IFC Markets

Forex Technical Analysis AUD/USD 2013-09-03

The currency pair recent downside bias was limited by key support at 0.8846 a more than a 3-year low, coexisting with the lower Bollinger band at that point. In addition, Bollinger bands are squeezing prices as in the recent trading the pair volatility reduced and has been fluctuating between 0.9230/0.8846 tight range.

Prices reached the lower boundary of the range and shifted to upside bias in the intraday, Williams’ percent range also suggested that earlier. We would expect the currency pair in the intraday to continue higher towards resistance at 0.9230 and perhaps until the end of the week we expect to see a Bollinger band break.

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Forex Technical Analysis USD/JPY 2013-09-04

Upside momentum was contained by resistance at 99.77 slightly below the key cap at 100. We consider the psychotically important area around 100 a major resistance that would limit the bullish bias of the currency pair for the following sessions.

Moreover, the Williams’ percent range is in the overbought zone weakening bullish attitude of investors but the Average Directional Index confirms strong uptrend. We are concerned about fundamental events of the week as well as risk of a Syria war could increase selling pressure on the pair. Nonetheless, in technical terms we would expect prices to consolidate in the intraday between 99.77/99.13 range with uptrend resuming after Williams oscillator eases.

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Forex Technical Analysis USD/CHF 2013-09-05

Upside bias continues in the USDCHF pair trading as prices have breached resistance at 0.9393 in yesterday trading and peaked at 0.9415. Moving average of oscillator has approached zero line and likely to turn positive soon, confirming bullish structure.

However, DeMarker oscillator is above 0.70 increasing risk for bulls but due to the positive trend we consider the subjective line at 0.90 the upside limitation. We consider therefore that there is some room for further highs for the pair, likely to rise as high as 0.9435 in the intraday, where the upper Bollinger band is located.

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Forex Technical Analysis USD/CAD 2013-09-06

Downside bias seems to be getting stronger than the upside with the currency pair unable to breach resistance at 1.0560 and creating a small daily double top pattern with neckline at 1.0468. That neckline has been breached and the pair is now targeting support at 1.0365.

Looking at the oscillators, Stochastic is in neutral zone heading downwards, MACD is positive but has dropped below its signal line that is an early bearish sign. Average Directional Index suggests strong trend and the +DI still above the –DI however their difference has significantly narrowed.

We would therefore expect the prices to move lower at least to support at 1.0365, around the valid up trend line in the following sessions. However, major jobs report later today could increase volatility so we cautiously trading.

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