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GBP/USD Daily Analytics

08:09 26.03.2018

Technical levels: support – 1.4150; resistance – 1.4200, 1.4250.

 

Trade recommendations:

 

Buy — 1.4170/80; SL — 1.4150; TP1 — 1.4250; TP2 — 1.4290.

Reason: bullish Ichimoku Cloud, but the lines Senkou Span A and B are horizontal; a golden cross of Tenkan-sen and Kijun-sen with the horizontal lines; the market is going to local highs.

 

1522051644-5838ef800660551113de2aff99712

 

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DIRECTION OF COMMODITY CURRENCIES. WESTPAC’S FORECASTS

09:46 26.03.2018

In the environment of trade wars, a lot of currencies are suffering. We can say that the most negative impact trade wars have on the Australian and the Canadian dollars. Both commodity currencies are suffering from volatility now. Let’s look at Westpac’s forecasts to determine if the loonie and the aussie have a possibility to strengthen.

 

Note: Westpac is one of Australia's "big four" banks and the second largest bank in New Zealand.

 

We will start with the Canadian dollar. According to the Westpac’s analyst, threats of trade wars and accommodative policy of the Bank of Canada are exaggerated. If we talk about the trade wars, risks of the US-Canada war have declined as the last one was excluded from Trump’s steel and aluminum tariffs. Moreover, there is a progress in NAFTA negotiations.

 

What about the BOC policy? Expectations on the BOC’s tighter monetary policy declined, however, the central bank is still anticipated to increase interest rates for the first time to the middle of 2018 and second time to the end of the year.

 

So market’s negative mood is supposed to slow down in the soon future.

 

What about rates? Westpac supposes that the USD/CAD unlikely will get a strong support at 1.30-1.35.

 

1522057336-bd82db647f8628d84c81f807d5b0e

 

The Australian dollar. Ahead of the release of the interest rate, the AUD/USD pair traded at the three-month low. However, the aussie managed to strengthen after the Fed’s meeting as the rate hike could not support the greenback.

 

The Australian dollar is still under the pressure because of trade wars that dramatically affect the currency. Furthermore, declining prices of basic commodity goods produced in Australia, have a negative impact on the Australian currency.

 

However, Westpac’s analyst notices that new workplaces and a weakening dollar will be able to support the stability of the AUD/USD pair, so it will trade near 0.77.

 

1522057327-875612112b44805221d72d28a5294

 

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EUR/USD Daily analytics

12:19 26.03.2018

 

1522066671-f1dd950c1481b3623566f49b36034

 

The main trend is still bullish. Also, there's a "Flag" pattern, so the market is likely going to test the next resistance at 1.2412 - 1.2445. If a pullback from this area happens little later on, there'll be an opportunity to have a bearish correction.

 

1522066671-79b16b9904dee3c44b6616564bb7c

 

All the Moving Averages have been broken, so the price is rising. The main intraday target is the nearest resistance at 1.2412 - 1.2445. This area could be a departure point for a downward correction towards the closest support at 1.2387 - 1.2358.

 

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[B]GBP/USD Daily Analytics[/B]
12:20 26.03.2018
 
1522066671-b1832f78108aa267aed6c1a457203
 
There's a "Double Bottom" pattern, so the market is likely going to reach another resistance at 1.4217 - 1.4277 in the short term. If we have a pullback from these levels, there'll be an opportunity to have a bearish correction.
 
1522066670-74c5064896ebe23e2e0107a44925b
 
The 34 Moving Average has acted as support. In this case, we should keep an eye on the next resistance at 1.4233 - 1.4277 as an intraday target. A pullback from this level could be a starting point for a decline.
 
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SELL AUD/JPY Daily Analytics

13:21 26.03.2018

 

According to the NAB Research, the AUD/JPY pair will break support levels displaying the strong yen and the weak Australian dollar. The break below the psychological level at 80.0 will bring the AUD/JPY pair to the September low of 75.9.

 

1522069881-3f3d15429c2a1beffa73fabcc6806

 

Be careful as the yen is going to strengthen against other currencies as well. We can expect USD/JPY to move down in the coming months too.

 

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EUR/USD Daily Analytics

13:24 26.03.2018

 

1522070576-42382f947151304cdb20a1971e94a

 

There's still no any reversal pattern so far because all the last candles are bullish. In this case, the market is likely going to test the nearest resistance area, which could be a departure point for a bearish correction.

 

1522070576-fe0124ca50aff7ac11fc4d959aecb

 

We've got a bullish "Three Methods" pattern, which pushed the price higher. Therefore, the pair is likely going to reach the upper "Window" in the coming hours.

 

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EUR/USD Daily analytics

13:24 26.03.2018

 

1522070576-42382f947151304cdb20a1971e94a

 

There's still no any reversal pattern so far because all the last candles are bullish. In this case, the market is likely going to test the nearest resistance area, which could be a departure point for a bearish correction.

 

1522070576-fe0124ca50aff7ac11fc4d959aecb

 

We've got a bullish "Three Methods" pattern, which pushed the price higher. Therefore, the pair is likely going to reach the upper "Window" in the coming hours.

 

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USD/JPY Daily Analytics

13:29 26.03.2018

 

1522070576-599a74f8c389d2b54bc0df4d5a097

 

There's a "Piercing Line", which has been formed at the last local low. So, we should keep an eye on the Moving Averages as an intraday bullish target.

 

1522070576-eb66f505a41dc8e5ac5c52c24ad91

 

We've got an "Inverted Hammer", which has been confirmed by the last "Three Methods" pattern. So, bulls are likely going to test the Moving Averages. If a pullback from these lines happens little later on, there'll be a moment for another decline

 

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USD/JPY: "INVERTED HAMMER" PATTERN

13:29 26.03.2018

 

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ezbisQ2.png

 

There's a "Piercing Line", which has been formed at the last local low. So, we should keep an eye on the Moving Averages as an intraday bullish target.

 

tmeyU4V.png

 

We've got an "Inverted Hammer", which has been confirmed by the last "Three Methods" pattern. So, bulls are likely going to test the Moving Averages. If a pullback from these lines happens little later on, there'll be a moment for another decline.

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WEEKLY FOREX OUTLOOK: MAR. 26-30

11:29 26.03.2018

 


 

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US President Donald Trump signed a presidential memorandum that will target up to $60 billion of Chinese products with tariffs. If China comes up with countermeasures, trade tensions will escalate further.

 

Concerns about trade wars have overshadowed central bank policy. The Federal Reserve raised the federal funds rate to 1.75% and signaled a relatively upbeat outlook for the economy. This is exactly the outcome the market was expecting, and the US dollar didn’t get any strength from the event. 

 

The US dollar index declined and looks vulnerable for 2018 lows in the 89.20 area.

 

In the current uncertain environment, traders prefer low-risk assets like the Japanese yen, especially in pairs like AUD/JPY and NZD/JPY. As for USD/JPY, if it settles below the key level of 105.00, we’ll see a deeper decline.

 

GBP/USD rose to the highest levels since January above 1.4200. The pound went up as the European Union and Britain agreed on a Brexit transition deal and the UK released strong wage growth figures. Two members of the Bank of England unexpectedly voted for a rate hike. However, traders focused on the idea that rates will rise only very slowly, so the pound retreated down by the end of the week. Traders continue to expect a rate hike in May, so the meeting didn’t really bring any surprises.

 

The 200-week MA creates resistance near 1.43. GBP/USD may retrace down to 1.3930 and 1.38.

 

EUR/USD continued consolidation between 1.24 and 1.22. Long-term uptrend remains in place, although the pair has lost its bullish momentum. European PMIs came below expectations. As a result, we expect the euro to continue trading close to the current levels.

 

Economic calendar

 

The economic calendar for the upcoming days is very light. Friday will be a bank holiday in many countries because of approaching Easter. The few important releases include US consumer confidence on Tuesday, American GDP on Wednesday and British current account together with Canadian GDP and US core PCE price index on Thursday.

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FBS Video Lessons

 

In this video Tutorial LESSON 15. PRINCIPLES OF TECHNICAL ANALYSIS.

There are 2 types of Forex market analysis: technical and fundamental. Technical analysis relies solely on the price chart. It shows what is happening in the market now and what was happening there earlier. In this video, you will learn more about it



 

Do not forget to chose your language from the video's subtitles :) 

 

YkJlzkQ.jpg

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XAU/USD Daily Analytics

06:44 27.03.2018

Recommendations:

 

BUY 1365 SL 1350 TP1 1395 TP2 1410 TP3 1425

 

BUY 1340 SL 1325 TP1 1380 TP2 1395 TP3 1410

 

On the daily chart of XAU/USD, the inability of bears to pull the pair below the support at 1302-1308 points at their weakness. Bulls managed to lead gold outside of the consolidation range of 1308-1340. This increases the odds of an advance towards 113% and 127.2% targets of the “Shark” and AB=CD.

 

1522132984-066d3deb5d5ea87db8f591de05038

 

On H1, XAU/USD formed a “Crab”. Advance above resistances at 1361 and 1365 will open the way up to 161.8%.

 

1522133002-85cdba6f73a19fdd04b2549b79817

 

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AUD/USD Daily Analytics

06:48 27.03.2018

Technical levels: support – 0.7730; resistance – 0.7750, 0.7780

 

Trade recommendations:

 

Sell — 0.7730; SL — 0.7750; TP1 — 0.7610; TP2 — 0.7580.

Reason: bearish Ichimoku Cloud with horizontal Senkou Span A and B; a new dead cross of Tenkan-sen and Kijun-sen under the Cloud, but with the lines are horizontal; the prices in a correction movement to the Cloud and can be stopped by Cloud’s resistance.

 

1522133297-42a68b4bfa2f0515dfbaa054e9dba

 

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USD/JPY Daily Analytics

06:49 27.03.2018

Technical levels: support – 105.00, 104.30; resistance – 105.60.

 

Trade recommendations:

 

Sell — 105.50; SL — 105.70; TP1 — 105.00; TP2 — 104.30.

Reason: bearish Ichimoku Cloud with horizontal Senkou Span A and B; a strong dead cross of Tenkan-sen and Kijun-sen; a market was oversold and corrected to Kijun-sen – the downtrend may continue soon.

 

1522133297-3dcc4d3b0e9d38341d309e86e7227

 

 

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USD/CAD Daily Analytics

06:56 27.03.2018

Recommendation:

 

SELL 1.2805

 

SL 1.286

 

TP1 1.269 TP2 1.2585 TP3 1.243

 

On the daily chart of USD/CAD, the pair pulled back after reaching 127.2% target of AB=CD. Bulls failed to keep the pair above the important area of 1.2914-1.2922. This points at their weakness. Triggering of the “Shark” pattern will increase the risks of correction towards 1.2685, 1.2580, 1.2430 and 1.2345.

 

1522133716-a70f362e806b9396a6c825f007d7b

 

On H1, a break of support at 1.2805 will trigger the “Shark” and AB=CD. Their targets of 113% and 224% are at 1.2585 and 1.269.

 

1522133730-f127c492224a7d9492ce724815b42

 

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EUR/USD Daily Anlytics

08:48 27.03.2018

 

1522140411-2d144385e7530426787874243cec5

 

The main trend is still bullish, but there's an opportunity to have a bearish correction in the short term. So, we should keep an eye on the nearest support at 1.2412 - 1.2387 as an intraday target.

 

1522140409-e5504a73771e12bb7001f6329efc5

 

There's a "V-Top" pattern, so the pair is likely going to test the closest support at 1.2412 in the coming hours. If a pullback from this level happens little later on, there'll be a moment to have another upward price movement.

 

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GBP/USD Daily Analytics

08:49 27.03.2018

 

1522140409-c14b92eeb224719fec267467de606

 

There's a "Double Top" pattern, so the market is likely going to test the nearest support at 1.4144. However, if we see a pullback from this line afterwards, bulls will probably try to reach the next resistance at 1.4277 - 1.4344.

 

1522140410-94749fa82baa04b3df7cb9af98759

 

There're two "V-Top" patterns in a row. So, the pair is likely going to achieve the 55 Moving Average, which could be a starting point for another bullish price movement.

 

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GBP/USD: "DOUBLE TOP" PATTERN

08:49 27.03.2018

 

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E3MPwPX.png

 

There's a "Double Top" pattern, so the market is likely going to test the nearest support at 1.4144. However, if we see a pullback from this line afterwards, bulls will probably try to reach the next resistance at 1.4277 - 1.4344.

 

jlTZVMa.png

 

There're two "V-Top" patterns in a row. So, the pair is likely going to achieve the 55 Moving Average, which could be a starting point for another bullish price movement.

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EUR/USD: "V-TOP" PATTERN

08:48 27.03.2018

 

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ZL9ZyCq.png

 

The main trend is still bullish, but there's an opportunity to have a bearish correction in the short term. So, we should keep an eye on the nearest support at 1.2412 - 1.2387 as an intraday target.

 

LNLl9Be.png

 

There's a "V-Top" pattern, so the pair is likely going to test the closest support at 1.2412 in the coming hours. If a pullback from this level happens little later on, there'll be a moment to have another upward price movement.

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EUR/USD Daily Analytics

07:00 28.03.2018

Technical levels: support – 1.2380; resistance – 1.2450, 1.2520.

 

Trade recommendations:

 

Buy — 1.2400; SL — 1.2380; TP1 — 1.2450; TP2 — 1.2520

Reason: expanding bullish Ichimoku Cloud with rising Senkou Span A; a golden cross of Tenkan-sen and Kijun-sen with the rising Tenkan-sen; the prices are corrected to Kijun-sen and on the support of the line.

 

1522220385-5974574d0f06c411e972e24d898d2

 

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GBP/USD Daily Analytics

07:02 28.03.2018

Technical levels: support – 1.4150; resistance – 1.4200, 1.4250.

 

Trade recommendations:

 

Buy — 1.4160/70; SL — 1.4150; TP1 — 1.4250; TP2 — 1.4290.

Reason: bullish Ichimoku Cloud, but the lines Senkou Span A and B are horizontal; a golden cross of Tenkan-sen and Kijun-sen was cancelled, but the prices above the strong support of the lines.

 

1522220385-5838ef800660551113de2aff99712

 

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GBP/USD Daily analytics

07:07 28.03.2018

Recommendation:

 

BUY 1.4245

 

SL 1.419

 

TP1 1.4345 TP2 1.4430 TP3 1.4525

 

On the daily chart, GBP/USD after reaching 88.6% target of the senior “Shark” pattern can proceed to 23.6%, 38.2% and 50% of the wave CD. To continue rally towards targets to 113% and 127.2% of the senior “Shark” pattern and AB=CD bulls need to rise above March high.

 

1522220815-b6b56ed02b1869ac79ae2067aff9c

 

On H1, GBP/USD reached targets of a “Shark” and “Wolfe waves”. Further dynamics will depend on the pair’s exit of the 1.4065-1.4245 consolidation range.

 

1522220832-2cf183d9aa99dd882e50bd88c66a5

 

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