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FX Weekly Report
The FX Weekly Report provides the latest, in-depth forex technical analysis about the FX market each week. By Pierre Charlebois.

Daily volatility is increasing in all markets including Forex

November 1, 2009 at 12:29 pm • Posted in fxweeklyreport

The markets are definitely moving towards a break-out or reversal as daily volatility has returned. As the long-term trend has been quite one-sided it stands to reason that this could signal a larger reverse.

I will caution that there is always a chance the trend will end with a bang and a further push to new highs and lows on some currencies pairs is possible. The other consideration of course is that a strong pull back in wave 2 on the Index is also a possibility. However I think the bottom line is to look for further USD strength in the bigger picture.

USD Index – Looks impulsive – A three wave pull back and continuation would bolster the Bullish USD view

USDindex_Nov_1_09

 

EUR/USD – The long term trend-line is at risk – A bounce or new high is possible but I believe the upside is limited

EURUSD_Nov_1_09

 

GBP/USD – A new high or drop have about equal weight possibility on this pair. Of course the downside level to watch is 1.5706

GBPUSD_Nov_1_09

 

USD/JPY – Yen strength and Dollar strength correlate when risk aversion is the theme. The move up looks corrective so downside is possible mid-term

USDJPY_Nov_1_09

 

USD/CHF – I’m not sure what the sort-term EW count is, However 1.0287 could be the key level

USDCHF_Nov_1_09

 

USD/CAD – Friday’s closing price of 1.0818, is a key pivot point the this pair

USDCAD_Nov_1_09

 

AUD/USD – Like the EUR/USD, a top is not guaranteed but a new top should signal a new drop

AUDUSD_Nov_1_09

 

NZD/USD – This pair should bounce but further drops would be expected

NZDUSD_Nov_1_09

 

EUR/JPY – Key levels are 1.40 and 1.30

EURJPY_Nov_1_09

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