Technical Analysis
Elliott Wave View: Nikkei May Pullback Short Term While Remains Bullish
Short Term Elliott Wave view suggests the rally from December 21, 2020 low in Nikkei Futures is unfolding as a 5 waves impulse Elliott Wave structure. Up from December 21 low, wave ((i)) ended at 27715 and pullback in wave ((ii)) ended at 26955. Index then rallied to 27615...
Market Morning Briefing: Euro Has Dipped Again
STOCKS
Equities looks mixed as they hover at highs. Dow remains stable around 31000 and keeps alive the chances of seeing 31300-31500 on the upside before a reversal. Similarly, DAX holds above the near-term support and can see one more leg of rise before a correction. On the Asians, Nikkei...
Gold Price Could Recover To $1,900, GBP/USD Outperforms
Key Highlights
Gold price found support near $1,815 after a sharp decline from $1,960.
The price could face a strong resistance near $1,900 if it corrects higher.
GBP/USD climbed higher and revisited the 1.3700 resistance zone.
The US CPI increased 1.4% in Dec 2020 (YoY), better than the market...
US Dollar And Related Pairs At Key Levels Ahead Biden And Powell: DXY, EUR/USD, NZD/USD
The second week of the new year hasn’t been very dramatic, at least for the markets. However, with frightening coronavirus headlines, markets are waiting for tomorrows unveiling of Biden’s economic relief program. Expectations are for “trillions” of dollars in recovery aid. In addition, Powell will be interviewed tomorrow by...
NZDUSD Maintains Positive Bearing Despite Pullback
NZDUSD appears to have found some footing on the mid-Bollinger band after receding from a recently reached 32½-month peak of 0.7314. The short-term technical indicators are revealing some weakness in positive momentum, while the soaring simple moving averages (SMAs) are endorsing a robust bullish picture.
The MACD, some distance above...
The Analytical Overview Of The Main Currency Pairs
The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2151
Prev Close: 1.2206
% chg. over the last day: +0.45%
On Tuesday, EUR/USD bounced off the support level, which casts doubt on the option with a deep correction. But the fundamental part is showing play on the side of the dollar...
EUR/USD Trades Below 1.2200
During Wednesday morning hours, the EUR/USD currency pair bounced off the resistance provided by the 100-hour SMA near 1.2210.
It is likely that the exchange rate could gain support from the 55-hour SMA and the weekly S1 in the 1.2160/1.2170 area. Thus, the rate could trade upwards in the short...
GBP/USD Reached 1.3700
Yesterday, the GBP/USD exchange rate breached the short-term descending channel north and skyrocketed to 1.3700.
It is likely that the currency pair could gain support from the weekly R1 at 1.3676 and continue to extend gains in the short term. The pair could target the resistance level—the weekly R2 at...
USD/JPY Could Trade Sideways
During today's morning, the USD/JPY currency pair reversed north from the support level—the weekly PP at 103.56.
It is likely that the exchange rate could be pressured by the 55– and 100-hour SMAs in the 104.00 area. Thus, some downside potential could prevail in the market, and the rate could...
XAU/USD Tests Fibo 23.60%
Since Tuesday, the XAU/USD exchange rate has been testing the resistance level—the Fibo 23.60% at 1,860.59.
From the one hand, it is likely that yellow metal could be pushed down by the 100-hour moving average near 1,870.00. In this case the exchange rate could decline below the 1,820.00 level.
From the...
EURGBP Plummets To 7-Week Low, Strongly Negative
EURGBP is plunging to a new seven-week low, below the 0.9000 handle, continuing the selling interest from the 0.9217 resistance. The bearish picture in the very short-term is further supported by the MACD, which is falling below its trigger line. The stochastic oscillator is holding in the oversold zone...
WTI Oil Outlook: Oil Prices Rose Further On Bigger Than Expected Inventory Draw
WTI oil rose further and hit new highest level ($53.90) since mid-February in late Asian trading on Wednesday.
Positive sentiment persists despite the latest developments in the US and Europe where lockdowns were imposed on rising new infections and death toll, as well as the biggest coronavirus spike in China...
USDJPY Advances Curbed By Cloud And Downtrend Line
USDJPY seems to be re-adopting its negative tone after being redirected below the 50-day simple moving average (SMA), following the recent deflection off the downtrend line drawn from the 111.71 peak. The flattening Ichimoku lines are suggesting a pause in negative price action, while the controlling SMAs are escorting...
EURUSD Back Under Pressure
The euro currency has fallen back under the 1.2200 level against the US dollar after meeting strong technical resistance from the 1.2220 level earlier today. The next key risk event for the EURUSD pair is the release of United States CPI inflation data. Traders should be aware that a...
USDJPY Attempting To Recover
The US dollar is attempting to recover higher against the Japanese yen currency, following a pullback towards the 103.60 level. The USDJPY pair took a tumble below the 104.00 level after US bond yields starting to fall, following recent strong gains. Technical analysis highlights the 104.50 level as a...
NZD/USD Tests 0.7240 Area
The New Zealand Dollar surged by 84 points or 1.18% against the US Dollar on Tuesday. The currency pair tested the upper boundary of a descending channel pattern at 0.7240 during yesterday's trading session. The exchange rate fell from the upper border of the channel pattern during the London...
USD/CAD Breakout Could Occur
The US Dollar declined by 84 points or 0.66% against the Canadian Dollar on Tuesday. The currency pair tested the lower boundary of an ascending channel pattern at 1.2703 on Wednesday morning.
Currently, the USD/CAD exchange rate is trading near the bottom border of the channel pattern and could be...
AUD/USD Could Continue To Edge Higher
The Australian Dollar edged higher by 87 points or 1.13% against the US Dollar on Tuesday. The currency pair breached the 50-, 100– and 200– hour SMAs during yesterday's trading session.
All things being equal, the AUD/USD exchange rate could continue to trend higher during the following trading session. Bullish...
EUR/JPY Likely To Maintain Channel
The single European currency declined by 36 points or 0.30% against the Japanese Yen on Tuesday. The 200– hour simple moving average provided resistance for the currency pair during yesterday's trading session.
Everything being equal, the exchange rate could continue to edge lower during the following trading session. The possible...
GBPJPY Tests September’s Resistance, Has Some Bullish Potential
GBPJPY is finally testing September's resistance region of 141.85 after finding enough strength to breach the 140.30 ceiling that kept the bulls in check over the past two months.
The positive momentum in the MACD and the rising RSI, which has still some distance to cover before touching a support-turned...
Gold Struggles Below 50.0% Fibonacci, Flat In Short-Term
Gold prices found significant resistance around the 50.0% Fibonacci retracement level of the upward wave from 1,764 to 1,959.32 at 1,862, holding marginally above the 20-period simple moving average in the 4-hour chart.
According to the technical indicators, the stochastic is looking overbought, as the %K line jumped above the...
Silver Sellers Prevail In A Ranging Market
Silver is still bearish but we could see ranging market conditions until it breaks the range (blue lines).
This is consolidation playing out. If the market gets to the POC zone 26.20-26.43, expect a possible drop. Targets for the silver move are 25.12 and 24.77. The final target is 24.46....
DJI 30 Close To Full Uptrend Continuation Despite Wedge
Dow Jones Index (US 30) is in a strong uptrend. Although price action has recently become quite slow and choppy.
A rising wedge pattern is visible as well. Will the bulls be able to push through resistance to keep the uptrend alive?
A bullish breakout could trigger strong momentum to the...
Gold Prices Set To Close Flat Yet Again
The precious metal is likely to close flat once again, marking a flat print for the second consecutive day.
Although prices rose higher intraday, the gains quickly disappeared. There is a possibility of prices forming a bearish flag pattern currently.
Therefore, if gold prices break down below the 1817.80 level of...
WTI Crude Oil Inches Higher
Oil prices continue to post modest gains with price action managing to rise above the trend line. As a result, WTI crude oil prices are now close to the next round number level of 53.00.
On the intraday charts, we see the bearish divergence on the Stochastics which is suggesting...
Sterling Snaps Back Higher On BoE Official Comments
The British pound sterling is posting strong gains on Tuesday. This comes following comments from a BoE official who was speaking out against negative rates.
The gains saw the GBPUSD breaking past the 1.3500 level. This invalidates the descending triangle pattern. Prices continue to rise past the trend line as...
EUR/USD Consolidates Below 1.218
The euro currency is catching a bid following the dollar weakness on Tuesday.
The dollar’s gain came to a halt after three consecutive days of gains. This has pushed the euro to test the 21 December lows of 1.2133.
Price action has been broadly flat after pulling back off the lows...
GBP/USD Outlook: Bulls Pressure Key 1.37 Barrier But Risk Of Stall Exists
Cable keeps firm bullish tone in early Wednesday’s trading and extends strong rally from the previous day (the pair was up 1.04% for the day in the biggest one-day rally since Nov 5), pressuring key barriers at 1.3700 zone (new multi-month high / upper 20-d Bollinger band).
Full retracement of...
Daily Technical Analysis
EUR/USD
Current level - 1.2216
The correction of the currency pair was limited by the support at 1.2140 and, at the time of writing the analysis, the bulls have taken control and the euro has gained positions against the greenback. Еxpectations remain positive and the most probable scenario for today is...
EURUSD Eyeing Further Weakness On Bear Pressure
EURUSD faces risk of further downside pressure after extending its weakness on Monday. On the down, support comes in at 1.2100 level with a violation opening the door for a run at the 1.2050 level. Further down, support is seen at the 1.2000 level. A cut through that level...