Today, I would like to continue to address the unprecedented weakening of the USD and the effect it has on major currencies. One of the most exciting things happening in the market over the last few weeks, days and hours are simply the record breaking increase of the Gold and silver. More so we are seeing the commodity related currencies also increase in value to a point of which few have gone and recovered from.The CAD and AUD are both approaching all time highs and continue on a strong uptrend against the USD. Is the USD done??

No, allow me to explain, many analysts across the world agree the recession is over however many believe the road to complete recovery is going to slow and painful, especially in the area of job growth. Fundamental analysis continues to show us higher unemployment rates from the US, the weakness of consumer spending continues to decline or remain flat. However with so much of the world wealth tied into the USD, it is hard to imagine a complete crash, for us traders right now the trend is clear!! We are seeing a weak USD and stronger everything else. In this market we say, “The trend is your friend”

Let’s talk on one of the most popular pair in the world

EUR/USD

The EUR has been moving in a clear uptrend. Today it reached and broke the resistance level of 1.4812. The expectation by many analysts in this market and the next resistance line for the EUR is at the 1.5000 line. Today we have seen the gold piggy back ride on the increase of the EUR with the gold reaching the level of $1065 an oz today!! The trend for this pair is clear, the fundamental and technical analysis is there to support our findings. Continue to look for the entry opportunity for this exciting and volatile pair now!!!

Here are the S&R line for Today:

Support: 1.4850-1.4780-1.4740

Resistance: 1.4890-1.4960-1.5010

Alright, so before we start today let’s see how our review yesterday and what happened with the AUS/USD. As you remember yesterday we talked about the amazing trend this pair has and how over the last few month we saw the great uptrend this pair offered us ( I will show you how much money you could have made yesterday with this pair).

Now let us talk more about the G7 (meeting of the finance ministers from a group of seven industrialized nations), as Forex traders we receive some very interesting news from those ministers and world leaders. All leaders made a bold statement expressing support for a strong dollar. The joint statement after their meeting in Istanbul was identical to an earlier statement of April “We come back and strengthen the common interest of our strong In recent months we began to see signs of global economic recovery, continuous improvement in conditions in the capital markets. However, there is no room for complacency, since the growth forecast is still not stable labor market conditions have not improved. To recovery will be based, we leave the support mechanisms in economics “, the ministerial statement said.  The ministers are seeking to strengthen the global market by indicating what they would like to see however we are still seeing a weaker buck today and the big question is, when will they intervene and make it a stronger dollar?

Fundamentals:  We have a few announcements today which will affect the market. Coming from United Kingdom we have the “Manufacturing Production M/M”. The previous announcement was 0.9% and the forecast for today is 0.4%. (08:30  GMT). Two more announcements coming in from Canada “Building Permits M/M” which will be released at 12:30 GMT. The previous announcement was -11.4% and the forecast for today is 4.5%. We have the “Ivey PMI”. The previous announcement was 55.7 and the forecast for today is 56.6. (14:00 GMT)

USD/CAD

The USD has lost it power over the last 3 days after it appeared like the USD was getting stronger.  We know that over the last few weeks we are seeing more sales of the USD and more buyers of the CAD and those actions are increasing the value of the Loonie. As we all know over the last 3 quarters the USD has been dropping against the majors against the EUR alone it is down 15% Y/Y already. Today we will wait and see what the result from Canada will bring today. Those results can give a strong indicator as to the direction of the CAD. I will Put Support and resistance lines so we can get a much better feel to where this pair goes. In a technical point of view we used a moving average of 30 days on a weekly and daily chart and with both it appears to be a down trend.

Fundamentals:  We have a few announcements today which will affect the market.

Coming from Canada we have the “Core Retail Sales”. The previous announcement was 1.0%

And the forecast for today is 0.1%. (12:15  GMT).

A second announcement coming from New Zealand  “GDP q/q” which will be released at 22:45 GMT. The previous announcement was -1.0% and the forecast for today is -0.2%.

EUR/USD

Very interesting trading week for foreign exchange traders
one of the most important pairs to follow is definitely the EUR/USD.

Last few weeks we noted that this pair is moving forward in a clear uptrend, as noted in our weekly and daily charts. Concluding that more people bought the EUR and sold the US dollar, the big Q we all ask will this uptrend continue.

There are 3 possible scenarios:

1. The pair can break its resistance line and continue its uptrend to the next resistance point.

2. The pair can continue to move within its current range.

3. The EUR/USD may change directions and break its support line creating a downtrend for the pair.

For a clearer picture we need to wait for more indicators coming from the US and European session. After the results are in we can get much better understanding to where the market will lead us.

Let’s see how much pips the market move….

Resistances:1.4730 – 1.4765

Supports:1.4670 – 1.4610

Fundamentals:  We have a few announcements today which will affect the market.

Coming from U.K we have the “Manufacturing Production”. The previous announcement was 0.4% and the forecast for today is 0.3%. (8:30 GMT).

One more announcement coming from Canada “Building Permits” which will be release at 12:30 GMT. The previous announcement was 1.0% and the forecast for today is 0.5%.

USD/CAD

Let’s start analyzing this fascinating couple, Earlier this week, the cad dollar continuing strengthening, you can clearly see it over a daily chart ,

After falling around 90 pips on the back of the August US unemployment report from 1.0970, USD/CAD has bounced at 1.0885 to previous levels close to 1.0980. Currently the pair is trading around 1.1050 to 1.0650 over a daily chart, it is important to note that there is a strong resistance point at 1.0825 .

this pair is a wonderful pair for scalping  traders , the pair is in  clear range, we can find some opportunities by continuing  to trade with this pair. Let’s translate yesterday movements to money

Resistances-1.0830 – 1.0895

Supports-1.0730 – 1.0680

XAU/USD

One of the most fascinating things in the forex market is the possibility to trade with commodities . Especially the black oil trade , witch so-called gold.
Over the last few days we are in a track we can find a clear volatility coming from this pair.
last time this pair had reached to the same levels as now ,was on th23 February, you can find it over the hourly chart , as we can see the pair tried several times to cross the resistance line, it’s hard to say what will happen, but it certainly seems that this direction is an uptrend.

Resistances -1030

Supports -990