3 Forex Technical Analysis for 16th of August


Yesterday’s movement is a typical Monday low volatile trading day. Traders should check today’s 3 Forex Technical Analysis and learn the catalyst for today. What should you pay attention to when it comes to trading AUD, EUR or USD?

16 August, AtoZForex – Today’s, technical analysis focuses on the major currency pairs AUDUSD, EURUSD and USDJPY. Considering that the economic calendar is packed with several high impact news such as Australia’s Monetary Policy Meeting and US’ CPI and Core CPI.  In addition, it is good to consider Europe’s German ZEW Economic Sentiment as catalyst for volatility.

AUDUSD Technical analysis

Bias: Sell stop @ 0.7665 with targets @ 0.7635

Alternative scenario:  Buy stop @ 0.7693 with target @ 0.7745

Comment:Yesterday’s session started with a good rally but the market closed with only 15 pips higher than the opening price. It was more of a consolidation before it is expected to continue the short term down trend. Considering that the candle formation prior yesterday was evening stat which suggests a bearish movement.

On a daily time frame, MACD also shows that it is about to enter the below 0 level territory.

The focus of today’s trading is the Reserve Bank of Australia (RBA) August Meeting Minutes. At their recent meeting, their decision of rate cut of 25 in order to assist inflation returning to target. This critical event will potentially provide more volatility. Another critical event to focus are the CPI and Core CPI for US Dollar. If the CPI results meet or exceed expectation, we will see the market to revisit the recent previous low at 0.7635 and possibly go further down at 0.7618.

Daily USDJPY techincal analysis for August 16 AUDUSD Technical Analysis (click here to zoom in)

EURUSD Technical analysis

Bias: Sell stop @ 1.1163 with targets @ 1.1130

Alternative scenario: Buy stop @ 1.1205 with targets @ 1.1255

Comment: The dollar pushed lower against major currencies on Monday, after Data earlier showed that the Empire State manufacturing index fell to -4.2 from July’s 0.55. EURUSD has formed an inside bar in daily time frame, which suggest a break either below or above the previous candle’s high or low will provide the direction of today’s market.

The critical economic data for today are the CPI and Core CPI for US Dollar. If the CPI results meet or exceed expectation, we will see the market to revisit the recent previous low at 1.1153 and possibly go further down at 1.1135.

Current market price hovers around the daily pivot and may break out either direction depending on the economic data release. Volatility is expected to pick up today as the key economic releases are vital.

The Technical Analysis for this pair suggests that it will continue with sideways movement. If the price breaks above 1.1215, we can expect the pair will go to 1.1240. On the other hand, if the price breaks below the recent support level at 1.1153, we can expect the pair will go 1.1135.

Daily EURUSD techincal analysis for August 16 EURUSD Technical Analysis (click here to zoom in)

USDJPY Technical analysis

Bias: Buy limit @ 101.12 with targets @  101.54 & 101.79

Alternative scenario: Sell stop @ 100.95 with target @ 100.60

Comment: The downward pressure on this pair is still strong that it is attempting to break lower lows that is followed by lower highs. This descending movement attributes to the most recent move of the Bank of Japan to increase in stimulus.

On a daily time frame, USDJPY has formed an inside bar which suggests a temporary rejection on the downward move. We may see a buying opportunity for today depending on the result of the key economic data for US referring to CPI. If the CPI results meet or exceed expectation, we will see the market to revisit the recent previous resistance at 101.65 and possibly go further towards 101.82.

Daily USDJPY techincal analysis for August 16 JPYUSD Technical Analysis (click here to zoom in)

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