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Aussie Ready for a Breakout

The Aussie looks ready for a breakout. Look at our first chart below. The AUD/USD has been pushing against the resistance area around 0.7700-0.7800 for the past 12 months. We've now quoted at 0.7671 and we are again approaching this area. With each subsequent test the odds increase that the resistance will eventually be broken.
Where do we target in case of a breakout? The monthly ATR for this currency pair is now at 388 pips, as can be seen below. But this is high to low range. The open to clos…
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Aussie to Rally Higher

I'm betting on the AUD/USD heading higher during November and here's why. On the first chart below we see a slow but steady trend higher for the Aussie.
On the second chart we notice the constant pressure by the bulls on the resistance area. With each thrust the odds increase that eventually they will break the dam and push prices upward. I'm placing my bet at 1.7980. This is just below the 1.8000 round figure and yet within the bounds of the monthly ATR for this pair.
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Gains for EUR/SEK WIll Not Last

The EUR/SEK finally managed to break above a two-year resistance line at 9.7256. But I don't think these gains will last and here's why. We're now quoted at 9.9140, only 1.9 percent away from the resistance. This is a fairly small amount.
But more important, this type of breakouts have happened many times in the past few years and it always ended in tears for the bears. Take a look at the chart below. We mark several bullish breakouts and they all ended with prices reverting deep towards the mea…
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fxsurprise8 28 11月

So far the general theme of my forecast has been correct. The EUR/SEK is currently quoted at 9.7746, well below the highs reached back in October.

As recent history shows (see the second chart above) breakouts in this pair tend to fail. After hitting a high of 10.0808 on US election day, it has been down ever since for the EUR/SEK.

Few days ago we hit a low of 9.7409 and we're now trading at 9.7746, about 1.4% away from my forecasted price. Let's hope that mean-reversion kicks in again, this time pushing prices higher from oversold territory.

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Aussie Knocking on Crucial Resistance Area

The Aussie is knocking on a crucial 80 pips-wide resistance area. Look at our chart below. We’ve been testing this general area between 0.7677 and 0.7757 for the past several months. Each time the bulls got repelled at a different price inside this resistance cluster. But with each test, the odds increase that we will see a bullish breakout.
On our second chart below we can see that the AUD/USD has finally broke the downward sloping trendline. This is an important development and could give the…
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More Gains for the Euro

The Euro had a okay but not great April. The pair rallied from 1.1377 to close the month at 1.1445. But that doesn't tell us the whole picture. On the chart below the daily trend is more clearly visible. Even more important, the EUR/USD closed Friday 94 pips in the green, showing that it has both trend and momentum on its side.
But just how far will this rally take us? I think the pair will have no problem breaking past the 1.1400-1.1500 resistance barrier. The only potential stopping point I'm …
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EURo to Breakout Higher

The Euro had a bumpy ride these past few months. First it rallied to 1.1375, then fell to 1.0825. Then rallied back up to 1.1341 before retracing to 1.1143. We are currently back up to 1.1345. This zig-zag movement is visible on the chart below.
But if we zoom in on a larger time-frame, the picture is a bit more clear. Here we can see that the pair has been bumping on this fairly large resistance area from around 1.13 -1.15 Euros per Dollar. This constant pressure should eventually break this r…
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