Good morning traders. We finally got a little bit of action overnight – some of the action was discussed on my site yesterday. Below are my latest updates and forex forecasts.
Note: the Short-Term Forex Forecasts highlight price direction and likely price targets/stops over the next several hours. So this is very short-term in nature. These are not official trade recommendations, merely guidelines and forecasts that I am looking at.
North American Short-Term Outlook:
- Dollar Index (DXC): Neutral to Bearish prices have moved into the forecast resistance zone at 80.70-80.90. I expect that a move lower will begin to develop and a break below 80.59 would suggest that move is getting underway.
- EUR/USD: Neutral to Bullish the mirror image of DXC and with the forecast support at 1.3450 holding in well we should be looking for a push to the upside. A move back above 1.3480 would suggest that prices are reversing.
- AUD/NZD: Neutral to Bearish no change from yesterday: this cross has been tricky (i.e. my recent forecasts were wrong!) but it does appear that the move off the July 13th lows is nearing completion. Look for some selling to begin as prices head into the 1.0870-1.0910 resistance area.
- EUR/CAD: Neutral to Bullish while Warren Buffet’s thoughts are correct: looking at bottoms is more fun than picking them, I will engage in a bit of bottom picking here. I am looking to get short, but need to see prices rally towards 1.4535 before considering doing so. Based on the way the chart is unfolding, this seems likely. A move above 1.4450-1.4470 suggests that move could be getting underway.
- AUD/CHF: Neutral to Bullish last nights break above .8479 raises my conviction level on being bullish going forward. However, will want to wait for a modest correction lower towards .8500-.8480 before getting long. A break below .8419 negates the bullish outlook.
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
