In this video, the Trader Guy looks at the currency pairs USD/JPY and AUD/USD for the August 18th session.
USD/JPY — As you can see, we fell a bit during the day, bounced and fell again. There was a lot of risk-off trading during the day. Right now, I just see this consolidation and we have a overall larger consolidation area. If we can get some stability here, I think we probably will, and we could go as high as 114.00. But that is obviously going to be very volatile and longer term move. Right now though, I think if we break below 108.00, that is very negative, and then we go to 105.00.
AUD/USD — The Australian dollar tried to rally during the day, but then turned around significantly to form a shooting star. That is a very bearish sign. A breakdown below the bottom of this candle has me looking for support below. We may have to retest the 0.7800 level, but after the impulsive candle from the previous session on Wednesday, I think we are going to make an attempt at 0.8000. We may just need to pullback to build up a little bit of momentum. Pay attention to gold, there is a positive correlation between the two markets obviously. So, that will be important. Now, the 0.8000 level is important as both support and resistance. I think it is going to take several attempts to get above there.