forex

European Open Preview – Markets shrug off latest trade tensions as dollar holds firm at 5-week high

Posted on April 6, 2018 at 9:29 am GMT

Here are the latest developments in global markets: FOREX: The US dollar came under fresh selling pressure yesterday after President Donald Trump stepped up the trade war with China and threatened additional tariffs on Chinese imports. The greenback briefly dipped below the key 107 level, having hit a 5-week high of 107.49 yen earlier in the day. Market participants chose instead to focus on the strong economic fundamentals of the US and global economy and the dollar quickly recovered, with [..]

Technical Analysis – EURGBP struggles for upside momentum; looks bearish below cloud

Posted on April 6, 2018 at 6:13 am GMT

EURGBP remains in a slightly downward tilting channel, which has been in place since September 2017. The longer-term neutral to bearish outlook was recently confirmed again when the pair touched a 9-month low of 0.8668 on March 22. It has since recovered from that low but the rebound was halted after finding resistance around 0.8790. In the near term, a fresh upside push is possible with prices looking to post a second straight session of gains today. However, the RSI [..]

Technical Analysis – NZDUSD remains below 3-week high; next level to watch 38.2% Fibonacci of 0.7260

Posted on April 5, 2018 at 7:23 am GMT

NZDUSD has reversed back down again after finding resistance at the 3-week high of 0.7320 achieved during today’s Asian session. This top is just below the 61.8% Fibonacci retracement level of the downleg from the high of 0.7436 to the low of 0.7152. Momentum indicators in the 4-hour chart, are pointing to a bearish bias with the RSI indicator bouncing off the overbought zone and approaching the 50 level in an aggressive manner. Moreover, the stochastics have overstretched and posted a bearish cross above the 80 level and turned into negative. [..]

Technical Analysis – USDJPY moves higher after touching return line of falling channel

Posted on April 5, 2018 at 6:19 am GMT

USDJPY has been overperforming in the past two days, jumping above the 20- and 40-day simple moving averages in the short-term. When looking at the bigger picture the pair has been developing within a downward sloping channel since December 2016. During the previous week, the price found a strong support obstacle from the return line of the channel and posted a 16-month low near the 104.60 price level. In the daily timeframe, the near-term technical indicators are bullish and point [..]

Technical Analysis – USDCAD still consolidating in upward sloping channel

Posted on April 4, 2018 at 12:33 pm GMT

USDCAD has been consolidating since September 2017 and has been stuck in a channel titled slightly to the upside. The neutral to bullish picture in the short term looks to last for a while longer after prices failed to break above the upper channel in mid-March for a more clear tendency. Resistance was met at around 1.2940 region, which holds near the 50.0% Fibonacci retracement level of the downleg from 1.3800 to 1.2060, forcing the pair to reverse lower. The negative bias in [..]

Technical Analysis – EURJPY maintains weak bias in near term; broader trend is bearish

Posted on April 4, 2018 at 8:47 am GMT

EURJPY remains under pressure in the medium-term and risk is still to the downside as prices continue to drift lower from the 137.50 strong resistance level. Over the last two months, the price has no clear tendency as it is trading within a range, bound by the 129.00 and 132.40 levels. The short-term technical indicators are bearish and point to more weakness in the market. Looking at the 4-hour chart, the pair is looking capped by the 20- and 40-simple moving averages [..]

Technical Analysis – AUDUSD trades above 19-week low; bullish bias in medium-term

Posted on April 4, 2018 at 6:37 am GMT

AUDUSD has been creating a short-term bearish movement since the end of January when it challenged a more than 2 ½-year high of 0.8135, pausing this downtrend at 19-week lows of 0.7640 over the previous week. Also, the price almost touched the 38.2% Fibonacci retracement level of the upleg from 0.6820 to 0.8135, which stands near the aforementioned obstacle. The technical indicators, in the daily timeframe, turned their bias to the upside, suggesting that the softness in the market may [..]

Technical Analysis – GBPUSD pares some losses; remains above 20- and 40-day SMAs

Posted on April 3, 2018 at 7:24 am GMT

GBPUSD is trading marginally higher over the last couple of days following the rebound from the 1.4000 strong psychological level, which holds near the 20-day simple moving average (SMA). This week, cable is paring some of the previous week’s losses and is shifting the tendency back to bullish. Having a look at the medium-term timeframe, the pair has been developing within an ascending tendency since March 2017 after touching the 1.2100 significant level. Technically, the momentum indicators are confirming the recent upside potential move. [..]

Technical Analysis – EURAUD edges towards 2-year high; bullish in the medium-term

Posted on April 2, 2018 at 2:58 pm GMT

EURAUD is rising for the second straight day and is – at the time of writing – up by 0.2% during Monday’s trading. The Tenkan- and Kijun-sen lines remain positively aligned in support of a bullish bias in the short-term, though they’re both more or less flat at the moment. The latter is an indication of weakening positive momentum for the pair. Given that price action crosses above the area around the 1.61 round figure, which may hold psychological significance, [..]

Technical Analysis – CADJPY edges higher after touching 1-year low of 80.55

Posted on April 2, 2018 at 1:39 pm GMT

CADJPY has been in bullish correction mode following the bounce off the 80.55 support level. The pair posted two consecutive weekly green sessions after it recorded an almost one-year low. The short-term technical indicators are endorsing the upward retracement in the price action. Technically, in the daily chart, the MACD oscillator continues to move higher towards its zero line and also stands above its trigger line, while the RSI indicator is holding near the 50 level, suggesting that the slightly positive movement [..]

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