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USD/JPY: bearish "Hanging Man"

1/27/2017

 

2701usdjpyH4.png

 

There’s a local correction, which is taking place on the four-hours chart. Also, we’ve got a bearish “Shooting Star” pattern, which hasn’t been confirmed yet. So, the price is likely going to test the 12 & 21 Moving Averages, which both could be a departure point for another upward price movement.

 

2701usdjpyH1.png

 

We’ve got a “Hanging Man” and an “Engulfing”. If these patterns be confirmed, the market is likely going to test the nearest “Window”, which could act as a support. If we see a pullback from this level, there’ll be an opportunity to have a bullish movement towards the last high. 

 

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EUR/USD: "Window" acted as a support

1/27/2017

 

2701eurusdH4.png

 

The price reached the 34 Moving Average. Also, the lower “Window” is acting as a support, so we’ve got a “Hammer”, an “Engulfing” and a “Tweezers”, but all these patterns haven’t been confirmed enough. Therefore, the current bearish correction is likely going to end soon, which means bulls will have a chance to test the last high again.

 

2701eurusdH1.png

 

We’ve got a pullback from the lower “Window”, so there’re a “Hammer” and an “Engulfing”. In this case, there’s an opportunity to have a local decline during the day. However, the market is likely going to test the nearest Moving Average afterwards.

 

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Forecasts for Indonesian Rupiah and Malaysian Ringgit[/img]

1/27/2017

 

Emerging market currencies are significantly correlated with commodity prices. Therefore, the currently firming global growth and rising oil prices contribute to the appreciation of emerging market currencies. Many believed that emerging market currencies would suffer under US President Donald Trump’s protectionist policies. So far, even after inaction of these trade-flow curbing executive orders, many emerging market currencies are experiencing an impressive rebound. This week was especially favorable for them due to the widespread weakening of the US dollar. Traders might become even less enamored with the American currency if Trump’s spending plans and tax policies fail to realize.

 

Indonesian Rupiah

 

USD/IDR moved choppily in the course of the past week. The prices slid to 13,354 level in the last few days on the relative weakness of the US dollar and rising oil prices. In the near term, the US dollar may extend its gains due to numerous domestic and international fundamental factors.  Indonesia is poised to see significant outflows this year as investors become concerned over a religious feud that sparked in the race for Jakarta governor Basuki Tjahaja Purnama.  Foreign funds have already pulled $110 million from local equities in January. This may be a serious drag on the domestic currency. Morgan Stanley’s recent report predicting a significant drop in the exchange rate of IDR spawned even more risk-averse sentiments among foreign investors.

 

Malaysian Ringgit

 

USD/MYR slipped some point in the course of the past week mainly on the broad weakening of the US dollar. In the longer-term, however, the risks are tilted to the upside especially if we get upbeat economic releases from the US next week, or the talks over imminent Trump’s fiscal stimulus reappear in the media headlines. Additional headwind for MYR may arise as soon as US border taxes become a reality. The USA is one of the main Malaysia’s export partners, so the US protectionist policies will increase the trading costs of Malaysian manufacturers. Investment inflows, however, may offer a modest support to the currency (the country has recently experienced capital inflows ($77 mln) that came from tumultuous Indonesia).  The currency pair may continue to trade in the narrow range of 4.4115 (the low of December 12, 2016) – 4.4590 (near the 50-day MA), as it stepped in the Ichimoku cloud on the daily technical chart.  

 

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US dollar: outlook for Jan. 30 - Feb. 3

1/27/2017

 

The past week was rather stable for the US Dollar. The greenback got support near December lows and spent most of the time not far from them.

 

The picture for the American currency is ambiguous. On the one hand, it is supported by strong stock market and rising Treasury yields. The hopes that Donald Trump will deliver a stimulus plan have once again increased. On the other hand, his protectionist policies raised uncertainties for global trade. Investors are especially concerned by Trump’s intention to build a wall on the US-Mexican border to reduce illegal immigration and introduce 20% tax on goods from Mexico to pay for the wall’s construction.

 

The Federal Reserve will meet on Wednesday. No changes in the central bank’s monetary policy are expected. Last week the Fed’s Chair Janet Yellen said that she can’t be precise about the timing of interest-rate hikes. Next week the US economic calendar will be packed with data releases: there will be core PCE price index, personal spending & pending home sales on Monday, CB consumer confidence on Tuesday, ADP non-farm employment change & ISM manufacturing PMI on Wednesday & nonfarm payrolls together with ISM services PMI on Friday.

 

All in all, the US dollar should behave in a more or less stable. Short-term swings will be data-driver. The longer-term direction will depend on Trump. There’s bullish engulfing on the daily US dollar index chart. Resistance is at 101.00 and 102.00. Support is at 99.80 and 99.00. 

 

USD_index(19).png

 

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EUR/USD: outlook for Jan. 30 - Feb. 3

1/27/2017

 

EUR/USD tested 1.0775, but didn’t hold there. European economic picture looks fine. PMI showed expansion in both manufacturing and services. At the same time, with the European Central Bank on the loose side, the scope for further increases in EUR/USD looks limited. All in all, the pair is driven primarily by the news from America. If American economy data looks solid – and the odds are it will – the pair will take a swing south.

 

Resistance is at 1.0720 (Jan. 17 high). The pair tested levels support January line. Still, moving averages on H4 are still in the bullish layout, so the pair has to settle below 1.0655 for us to acknowledge the change in trend and set the target to 1.0550/20 area. At the same time, the bulls need to push the euro above 1.0720 for it to regain an opportunity of growth towards 1.0800.

 

As for the euro area’s economic calendar, focus your attention on the region’s consumer inflation figures for January and preliminary Q4 GDP on Tuesday. There will be also economic forecasts from the EU and ECB on Wednesday and Thursday. 

 

EURUSDDaily(35).png

 

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GBP/USD: outlook for Jan. 30 - Feb. 3

1/27/2017

 

GBP/USD rose to 1.2670 before turning lower.

 

Trading the British pound is not so easy these days. The market is running ahead of the news and most movements are on expectations, but not on the actual events. For example, GBP/USD fell even though it became known that British preliminary Q4 GDP posted a strong gain of 0.6%. It seems that Brexit hasn’t done much to the UK economy yet. British Supreme Court has ruled that the UK government needs an approval of the parliament to trigger Brexit. Yet, few experts doubt that Theresa May will get such an approval. Friendly relations between the US and the UK after the meeting between Ms. May and Donald Trump would support the pound.

 

We will learn much more about the UK’s economic health in the coming days. Don’t miss manufacturing PMI on Wednesday, construction PMI on Thursday and services PMI on Friday. The Bank of England will meet on Thursday. No change in the central bank’s monetary policy is expected. We don’t expect the regulator’s head Mark Carney to say something that would make the pound gain much as the strong pound is not in the interest of the UK economy. Note, however, that the Bank of England will also present its quarterly inflation report. British inflation has accelerated during the recent months. As a result, some analysts have started wondering whether the BoE’s excessive easing steps taken last year were necessary. Carney may have to answer this question. If he acknowledges the strength of British economy, the pound will get a short-term boost. If he underlines that uncertainty about the nation’s economic future is still present, the pound will keep snapping its recent recovery.

 

The pair dipped below the 2-week support line and can test lower levels. However, until the pound is trading above 1.2430/15 area (highs of Jan. 5, 6, 17 and 18), it will retain the ability to reach 1.2775 and get higher. Below 1.2430 we’ll target 1.2300.  

 

GBPUSDDaily(31).png

 

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USD/JPY: outlook for Jan. 30 - Feb. 3

1/27/2017

 

USD/JPY for the second time found support in the 112.50 area.

 

The yen declined Japanese bonds rose as the Bank of Japan stepped in to buy debt. The central bank increased the purchases of bonds due in 5-10 years from 410 billion yen to 450 billion yen. It seems that the regulator aims not to allow the benchmark 10-year yields to exceed 0.10%.

 

Japanese inflation turned out to be slightly better-than-expected in December (core CPI gained 0.3% vs. the forecast increase of 0.2% on the annual basis). The Bank of Japan will meet on Tuesday. No shifts in monetary policy are expected as currently there’s no necessity for additional monetary policy easing.

 

The US dollar’s ability to gain versus the Japanese yen will depend on the actions of Donald Trump, comments from the Federal Reserve and the incoming US economic data. Trading can be volatile as the amount of liquidity will be lower with Chinese markets closed until Wednesday and the US releasing nonfarm payrolls on Friday. The only reason for the yen to strengthen will be a substantial increase in the market’s risk aversion.

 

Above 115.50 USD/JPY will be capable of reaching 117.50. Firm support is located at 112.50. The loss of this level will open the way down to 111.15.   

 

USDJPYDaily(30).png

 

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Key option levels for Monday, January 30th

1/29/2017

 

* Data about changes in the open interest will be available on Monday after 12:00 CT (Central Time)

 

EUR/USD

 

EURUSD(115).png

 

Main trend Short-term period Medium-term period

Neutral Neutral

Changes in the open interest -?- -?-

Closest resistance levels 1.0718(30?); 1.0756; 1.0781; 1.0819

Closest support levels 1.0697; 1.0678; 1.0646; 1.0598

Trading recommendations

Baseline scenario (High risk of reversal) Short EUR/USD below 1.0697, with target points at 1.0678 and 1.0646

Alternative scenario Moving above 1.0718 can be considered as a signal to Buy the pair, with target at 1.0756 and 1.0781

 

GBP/USD

 

GBPUSD(102).png

 

Main trend Short-term period Medium-term period

Neutral Bearish

Changes in the open interest -?- -?-

Closest resistance levels 1.2578; 1.2596; 1.2623; 1.2643

Closest support levels 1.2521; 1.2501; 1.2476; 1.2449

Trading recommendations

Baseline scenario (High risk of reversal) Long GBP/USD above 1.2578, with target points at 1.2596 and 1.2623

Alternative scenario Moving below 1.2521 can be considered as a signal to Sell the pair, with target at 1.2501 and 1.2476

 

USD/JPY

 

USDJPY(84).png

 

Main trend Short-term period Medium-term period

Bullish Neutral

Changes in the open interest -?- -?-

Closest resistance levels 115.04; 115.35; 115.63; 115.83

Closest support levels 114.73; 114.51; 114.23; 113.82

Trading recommendations

Baseline scenario Long USD/JPY above 115.04, with target points at 115.35 and 115.63

Alternative scenario Moving below 114.73 can be considered as a signal to Sell the pair, with target at 114.51 and 114.23

 

USD/CAD

 

USDCAD(97).png

 

Main trend Short-term period Medium-term period

Neutral Bullish

Changes in the open interest -?- -?-

Closest resistance levels 1.3170; 1.3212; 1.3236; 1.3271

Closest support levels 1.3123; 1.3101; 1.3074; 1.3048

Trading recommendations

Baseline scenario Long USD/CAD above 1.3170, with the target points at 1.3212 and 1.3236

Alternative scenario Moving below 1.3123 can be considered as a signal to Sell the pair, with target at 1.3101 and 1.3074

 

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NZD/USD: kiwi is drawing the second shoulder

1/30/2017

 

On the NZD/USD daily chart, bulls push prices towards the target 88.6% in the "Shark"  inverted pattern. If they manage to test the resistance at 0.735 and 0.7415 (78.6% and 88.6% from the last mid-term descending wave), there might be a restoration of the upward trend. The nearest support lies near the 0.724 level.

 

Screenshot_2017_01_30_08_34_03.png

 

On the NZD/USD hourly chart, there is a formation of the "Head and shoulders" pattern. A breakout of the neckline near the 0.7225 level can lead to the correction towards 0.7145. In contrast, a successful test of the resistance at 0.7285 will open the way to the north. 

 

Screenshot_2017_01_30_08_34_17.png

 

Recommendations:

 

SELL 0,7225 SL 0,728 TP 0,7145,

 

BUY 0,7285 SL 0,723 TP1 0,735 TP2 0,7415. 

 

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USD/JPY: yen is running in the corridors

1/30/2017

 

On the USD / JPY daily chart, bulls fulfilled the target on the previously formed longs but failed to overcome the important resistance at 115.35. As a result, the descending trading channel has been formed. If quotes don't go out from its boundaries, the upwards trading channel will unlikely be restored. The nearest support is located at 112.5.

 

Screenshot_2017_01_30_08_33_36.png

 

On the USD/JPY hourly chart, bears are trying to go back to the descending trading channel. The key moment will be the test of the support at 113,95-114. Its breakout can lead to the restoration of the medium-term downward trend. If the aforementioned support is not tested, the bulls may start their attack in the direction of the target 161.8% in the AB = CD pattern.

 

Screenshot_2017_01_30_08_33_50.png

 

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Morning brief for January 30

1/30/2017

 

USD/JPY dropped to 114.50 on a slightly softer than expected US Q4 GDP, downside miss on durable goods orders and Trump’s immigration policy. On Friday, the US president signed an executive order necessitating suspension of the US refugee program for 120 days and banning all immigrants from 7 Muslim countries for 90 days. So far, we have another protectionist executive order in our piggy bank and there is as yet little flesh on the bones for the FOMC to raise interest rates. This’s non-farm payroll week; who knows, maybe the US data will bring us good news.

 

EUR/USD jumped to 1.0730 on the dipping US bond yields and on the same reasoning that we’ve presented in the first paragraph. Today’s focus will on the US data package: core PCE, personal spending and pending home sales all coming after 15:30 MT time.

 

AUD/USD slid down to 0.7550 in the course of the Asia session. Chinese Lunar New Year holidays kept trading in the Asian session on the subdued side.

 

Kiwi moved downwards having touched 0.7260. The trade balance data was ahead of market’s expectation (the deficit shrank to -41M), but it didn’t put new heart into NZD.

 

USD/CAD advanced to 1.3133 due to the broad weakening of the Canadian dollar. There was a shooting in a Quebec mosque overnight. Five Muslims were killed according to Reuters report. Brent oil futures slowed down their pace and went lower to $55.45 on the Asian session. 

 

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EUR/USD: "V-Top" pushing price lower

1/30/2017

 

30-1-2017-EUR-H4.png

 

We’ve got a new “Breakaway Gap”, so the price faced a resistance at 1.0745. Also, there’s a “V-Top” pattern, so bears are likely going to test the 34 Moving Average in the short term. If a pullback from this line happens, there’ll be an opportunity to have an upward price movement towards the next resistance at 1.0774.

 

30-1-2017-EUR-H1.png

 

Bulls found a resistance at 1.0745, which led to form a “V-Top” pattern, so the price is declining. The main intraday target is a support at 1.0678, which could be a departure point for another bullish rally in the direction of the last high.

 

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GBP/USD: bears going to test uptrend

1/30/2017

 

30-1-2017-GBP-H4.png

 

The price faced a support at 1.2509, so the pair is consolidating. Nevertheless, bears are likely going to test the next support at 1.2490 near the uptrend. If we see a pullback from this level, there’ll be a chance to have a new local high.

 

30-1-2017-GBP-H1.png

 

There’s a “V-Top” pattern, which has been confirmed. Therefore, the market is likely going to decline towards a support at 1.2509 – 1.2490 during the day. Considering a possible pullback from this area, bulls will probably try to test the nearest resistance at 1.2619 – 1.2672.

 

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AUD/USD: aussie going into the Cloud

1/30/2017

 

Technical levels: support – 0.7530, 0.7480; resistance – 0.7570, 0.7610.

 

Trade recommendations:

 

1. Buy — 0.7560; SL — 0.7540; TP1 — 0.7610; TP2 — 0.7660.

 

2. Buy — 0.7530; SL — 0.7550; TP1 — 0.7480; TP2 — 0.7400.

 

Reason: bullish Ichimoku Cloud, but falling Senkou Span A; a dead cross of Tenkan-sen and Kijun-sen and falling lines; the prices are in the Cloud.

 

03-audusdh4(74).png

 

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USD/JPY: bulls are intercepted initiative

1/30/2017

 

Technical levels: support – 114.60; resistance – 115.60.

 

Trade recommendations:

 

1. Buy — 114.60; SL — 114.40; TP1 — 115.60; TP2 — 116.10.

 

Reason: bearish Ichimoku Cloud, but rising Senkou Span A; a golden cross of Tenkan-sen and Kijun-sen and rising Tenkan-sen; the prices are supported by Tenkan-sen.

 

04-usdjpyh4(71).png

 

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Commerzbank warns of potential drop in oil prices

1/30/2017

 

Brent futures slid to $55.52 from $58.35 (January high) as investors got signals of growing production in the United States that can potentially offset the output cuts implemented by several OPEC members. Baker Hughes rig count climbed by 15 to 566 last week.  Donald Trump in his first days as the US President positions himself as protectionist and advocate for the resurgence of the US energy industry.

 

Oil prices were steady in January hovering above $50 as OPEC members and allies fulfilled their promises under the collective agreement. Saudi Arabia, Kuwait, and Algeria said that they had cut output this month by even more that it was required. Russia convinced the market that it’s curbing production faster than it was suggested. The oil market was showing resilience having refused to react to such bearish news as the buildup in the US oil inventories and rigs number. So, at the present time, many investors buy are buying oil futures with expectations that prices will continue their rally in the near-term future.

 

Analysts from Commerzbank call on investors not to be too joyful beforehand and warn them of an imminent decline in oil prices as soon as countries start refusing to adhere to output cuts. Another drag on oil prices – any indication of the growth of the US oil industry (rise in drilling activity, the restoration of pipelines).  An additional factor that may contribute to the oil prices’ downfall is Iran’s intentions to increase oil production after international sanctions eased last year. Now, the country persistently seeks funding and technology from abroad to open about 70 oil and natural gas field as soon as possible.  

 

brent.png

 

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USD/JPY: bears going to test "Window" again

1/30/2017

 

3001usdjpyH4.png

 

The last “Window” acted as a support twice, but we’ve got a bearish “Hammer” and a “Shooting Star”, which both have been confirmed. Therefore, the market is likely going to test 13 & 21 Moving Averages, which could be a departure point for another bullish price movement.

 

3001usdjpyH1.png

 

We’ve got a new “Window”, which is acting as a resistance. Also, there’s a local “Engulfing”, so bears are likely going to test the lower “Window” in the short term. If a pullback from this level be on the table, there’ll be an opportunity to have a new local high.

 

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Your helpers for technical chart analysis

1/30/2017

 

In this article, you will find some useful technical indicators that will facilitate your trade and save your time for chart analysis.  

 

Chart pattern recognition indicator

 

Candlestick patterns are really quirky.  Even when we think that we’ve remembered all the patterns we need accurately, there are good chances that things will get twisted.  Where exactly the wick of the candle should start/end; how one bar should be positioned against another one for the right signal. These and many other questions must have been arising in your head when you were struggling to identify the future movement of the prices. There are many indicators that can do the same job for you. So, you won’t need to google shooting, morning stars, haramis every time you want to open a trade. One of such indicators is called the chart pattern recognition indicator. You can easily download it on the Internet and never confound bearish engulfing pattern with its bullish homologs and ext.

 

That’s how it looks in Metatrader 4.

 

GBPUSDDaily(33).png

 

Market Profile MetaTrader indicator

 

Another indicator that might grab your attention is Market Profile MetaTrader indicator. It will enable you to monitor the price density over a given period of time. With the help of this indicator, you will quickly identify the most important price levels, value areas. The indicator should be plotted to M5 – D1 timeframes.

 

Example from MT4

 

EURUSDM15(1).png

 

Pin-bar indicator

 

The next indicator will help you to find pin-bars –  the most effective reversal patterns. Just to remind you, pin-bar is a single candlestick that identifies potential reversals in the market. You might find it easy to identify these patterns at the technical charts. But sometimes we just don’t notice them being focused on other important things. So, the pin-bar indicator will be our reminder of all these needlelike patterns. 

 

Example from MT4 

 

EURUSDDaily(37).png

 

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EUR/CHF broke strong support area

1/30/2017

 

EUR/CHF broke strong support area

Next sell targets – 1.0650 and 1.0620

EUR/CHF continues to fall strongly – following the earlier breakout of the powerful support area lying between the support levels 1.0700 and 1.0680 (this support zone has been steadily reversing this currency pair from last June). The breakout of this support area should accelerate the active minor impulse wave 3, which belongs to the intermediate impulse wave (3) from August.

 

EUR/CHF is expected to fall further toward the next sell target at the support level 1.0650 – the breakout of which can lead to further losses toward the next support level 1.0620 (target price for the completion of the active minor impulse wave (iii)).

 

EURCHF_-_Primary_Analysis_-_Jan-30_1559_

 

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USD/CHF reversed from support zone

1/30/2017

 

USD/CHF reversed from support zone

Next buy target - 1.0080

USD/CHF recently reversed up from the support zone lying between the pivotal support level 1.0000 (former top of impulse 1 from October, which was set as the sell target in our earlier forecast for this currency pair), lower daily Bollinger Band and the 50% Fibonacci correction level of the previous upward impulse from November. The upward reversal from this support zone stopped the earlier C-wave of the intermediate ABC correction (4) from December.

 

USD/CHF is likely to rise further toward the next buy target at the resistance level 1.0080 (earlier support level, which stopped the previous minor impulse wave (i)).

 

USDCHF_-_Primary_Analysis_-_Jan-30_1558_

 

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EUR/USD: bears going to deliver wave iii of (iii)

1/30/2017

 

Image20170130181932001.jpg

 

4/8 MM Level acted as resistance several times, so wave 2 has been ended in a form of a zigzag. Therefore, bears are likely going to deliver a bearish impulse in wave . The main intraday target is 2/8 MM Level, which could be a departure point for an upward correction.

 

Image20170130181932002.jpg

 

We’ve got a zigzag in wave (i), so the market delivered an impulse in wave i, which was stopped by 4/8 MM Level. So, it’s time for a local correction. Meanwhile, there’s an opportunity to have wave iii of (iii) afterwards. 

 

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Key option levels for Tuesday, January 31st

1/31/2017

 

EUR/USD

 

EURUSD(116).png

 

Main trend Short-term period Medium-term period

Bearish Neutral

Changes in the open interest - 3 339 ? - 104 688 ?

Closest resistance levels 1.0711; 1.0734; 1.0751; 1.0777

Closest support levels 1.0692; 1.0673; 1.0642; 1.0620

Trading recommendations

Baseline scenario Short EUR/USD below 1.0692, with target points at 1.0673 and 1.0642

Alternative scenario Moving above 1.0711 can be considered as a signal to Buy the pair, with target at 1.0734 and 1.0751

 

USD/JPY

 

USDJPY(85).png

 

Main trend Short-term period Medium-term period

Bearish Neutral

Changes in the open interest + 452 ? + 839 ?

Closest resistance levels 113.66; 113.93; 114.16; 114.50

Closest support levels 113.46; 113.26; 112.89; 112.49

Trading recommendations

Baseline scenario Short USD/JPY below 113.46, with target points at 113.26 and 112.89

Alternative scenario Moving above 113.66 can be considered as a signal to Buy the pair, with target at 113.93 and 114.16

 

USD/CAD

 

USDCAD(98).png

 

Main trend Short-term period Medium-term period

Neutral Bullish

Changes in the open interest + 121 ? + 41 ?

Closest resistance levels 1.3125; 1.3153; 1.3200; 1.3222

Closest support levels 1.3089; 1.3065; 1.3026; 1.3002

Trading recommendations

Baseline scenario Long USD/CAD above 1.3125, with the target points at 1.3153 and 1.3200

Alternative scenario Moving below 1.3089 can be considered as a signal to Sell the pair, with target at 1.3065 and 1.3026

 

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USD/CAD: bears are testing the support

1/31/2017

 

On the USD/CAD daily chart, quotes came closer to the lower boundary of the ascending trading channel. If it is tested successfully, the prices can move lower towards 1.2977 (23.6% Fibo level of the last downward long-term wave), and towards 1,284 (88.6% target in the "Double top" pattern). In contrast, the rebound from the lower boundary of ascending trading channel can lead to the consolidation.

 

Screenshot_2017_01_31_07_44_26.png

 

On the USD/CAD hourly chart, an activation of the AB = CD pattern followed by the breakout of the support located at 1.3035 can lead to the drop of the quotes to 224% target of the AB=CD pattern. The nearest resistance levels are located near 1,318 and 1,322 marks.

 

Screenshot_2017_01_31_07_44_38.png

 

Recommendation:  BUY 1,3035 SL 1,2980 TP1 1,318 TP2 1,322.

 

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Morning brief for January 31

1/31/2017

 

Price action in currencies has been a bit muted with JPY and GBP the two exceptions. It was the BOJ’s announcement day. The Bank of Japan stood pat and remain fairly committed to its yield curve control and other expansionary policies; extended deadline for loan program aimed at boosting lending, supporting industries. Inflation expectations are the same, not upbringing. USD/JPY slumped to 113.45.

 

EUR/USD edged up to 1.0700 on the broad weakening of the greenback. The US yields dipped on Monday. Later today, ECB president Draghi will be speaking in Frankfurt on Europe’s digital integrate market (the speech shouldn’t be market-moving). CPI figures and EU preliminary Q4 GDP are to produce a much greater effect.  If CPI data indicates an uptick in inflation rates, it will increase calls for an early end to the ECB’s asset purchase program and push the euro higher.

 

USD/CAD slid to 1.3090 in the course of the past session mainly on the risk-averse investors’ sentiments. Market participants are becoming extremely worried as Mr. Trump seems to be serious about putting his controversial campaign pledges into action. This anxiety spread to the stock market and became a drag on the stock market. Other explanations hardly can be found. Brent oil futures are moving lower. Today’s focus will on the Canadian monthly GDP and raw material price index coming at 15:30 MT time.

 

GBP/USD spearheaded on Tuesday taking advantage of the US dollar’s weakness. There might be a bit of payback from the greenback if US consumer confidence release is strong.

 

Aussie and kiwi extended their gains against the US dollar. AUD/USD moved to 0.7560. NZD/USD rose above 0.7290 level. Later today we will receive the labor market data from New Zealand (employment change and unemployment rate).

 

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EUR/USD: bulls going to test the nearest resistance

1/31/2017

 

31-1-2017-EUR-H4.png

 

The price faced a support on the 89 Moving Average, so we’ve got a “V-Bottom” here. Therefore, the market is likely going to reach the nearest support at 1.0719 – 1.0745 in the short term. If a pullback from this level happens, there’ll be an opportunity to have another decline towards a support between the 89 MA and the level 1.0624.

 

31-1-2017-EUR-H1.png

 

We’ve got a “V-Bottom”, so the price is consolidating. In this case, we should keep an eye on the nearest resistance at 1.0739 – 1.0745 as a possible intraday target. However, if we have a pullback from this area, bears will probably try to achieve a support at 1.0678 – 1.0669 afterwards.

 

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