The EUR made considerable ground against its US counterpart yesterday, after US President Trump’s trade advisor commented that the euro was ‘grossly undervalued’. The move was further exacerbated by lower-than-expected US consumer sentiment and a disappointing Chicago PMI, as well as a decline in the 10-year treasury yield!
The 1.07 psychological handle, along...
US President Trump’s decision to halt some immigration revived demand for the safe-haven yen yesterday. Following an upward rejection of December’s opening level at 114.68 going into the London session, the USD/JPY collapsed, wiping out the 114 psychological handle and clocking lows of 113.44 on the day.
As we write, the weekly candles are seen hovering...
The bearish pulse continues to beat in the GBP/USD market this morning. Sterling came under pressure shortly after Sunday’s open, falling sharply from a H4 supply zone at 1.2611-1.2589. Several H4 tech supports were engulfed during this downward move, including the H4 demand at 1.2490-1.2531 which is currently being retested as supply. On the condition that this...
Weekly gain/loss: - 8 pips
Weekly closing price: 1.0690
Weekly opening price: 1.0721
Despite the pair ranging over 100 pips last week, EUR/USD prices are little changed. What is notable from a technical perspective, nevertheless, is the reaction seen from the long-term weekly trendline resistance (stretched from the low 0.8231), which consequently formed a...
Reasons why we like this level are as follows:
1. Boasts a nice-looking FIB 61.8 RET.
2. Trendline resistance.
3. Monthly opening level around the 1.3113 mark.
4. Supply at 1.3112-1.3137.
5. RSI (Possible) negative divergence.
Psychological levels are often faked. So given there is a round number positioned just below our sell zone at 1.31, we're expecting a...
Sterling closed marginally higher against its US rival on Wednesday, consequently printing a near-full-bodied daily bull candle and clocking a high of 1.2638 on the day. With the psychological resistance 1.26 out of the picture, the H4 candles, as you can see, marched north to test a minor H4 resistance coming in at 1.2635. While this level is currently capping...
Beginning with the weekly timeframe this morning, price is seen toying with the top edge of a weekly resistance area drawn from 1205.6-1181.3, and its converging weekly trendline resistance extended from the low 1130.1. Since this weekly area boasts historical significance, it may be worth waiting for the weekly candle to close before presuming that this weekly...
Underpinned by a fading US dollar, and expectations of more parliamentary participation in the Brexit proceedings to be the result of the EU court membership ruling today at 9.30am, the pound munched through several H4 tech resistances yesterday!
Looking over to the weekly candles, we can see that price has recently peeked above the weekly trendline resistance...
Across the board, we saw the US dollar wane against the majority of its trading peers. This forced the single currency to attack and eventually close beyond the 1.07 handle on the H4 chart, and end the day closing above daily resistance coming in at 1.0710 (now acting support). In addition to this, Monday’s movement has placed weekly action within touching...
Weekly gain/loss: + 14 pips
Weekly closing price: 114.56
Although the USD/JPY ranged over 300 pips last week, the pair was little changed by the closing bell. This, as is evident from the weekly chart, formed a clear-cut weekly indecision candle. Weekly resistance levels we have our eye on this week are 116.08, followed closely by the 2017 yearly opening level at...
Weekly gain/loss: + 58 pips
Weekly closing price: 0.7551
As we can all see from the weekly chart the commodity currency had another relatively respectable week, boasting a fourth consecutive weekly gain! On top of this, price conquered the weekly supply zone sitting at 0.7524-0.7450 (now acting support area), and has potentially opened the trapdoor for the unit...
Weekly gain/loss: + 59 pips
Weekly closing price: 1.0698
Since crossing swords with the weekly support area coming in at 1.0333-1.0502, the single currency has closed in the green for five consecutive weeks. From our perspective, the weekly candles look poised to continue higher this week, with the crosshairs likely fixed on the long-term weekly trendline...
Having fallen so aggressively from H4 resistance at 0.7561 on Wednesday (sparked by the slightly hawkish words of Fed Chair Janet Yellen), the commodity currency caught a fresh bid from the 0.75 handle going into the early hours of yesterday’s session. This, as far as we can see, was reinforced by Aussie employment data which came in relatively positive, adding...
The EUR, as you can see, made considerable ground against its US counterpart yesterday, conquering both the H4 supply area at 1.0670-1.0639 (now acting support zone) and the psychological band 1.07. Providing that the bulls remain in the driving seat above this number today, we could very well see price challenge 1.0796 – a H4 Quasimodo resistance line that’s...
Following Monday’s 200-pip gap to the downside, we can see that the pair partially recovered some of its losses yesterday, reaching highs of 1.2084 on the day. In Monday’s report, the desk commented on the likelihood that this instrument would find a ceiling between the lower edge of the weekly resistance area at 1.2082 and the psychological level 1.21. As...
As is shown on the weekly chart, the EUR was seen flexing its financial muscle somewhat last week with price tapping highs of 1.0684. Should we see a similar picture this week, it’s likely that the unit will shake hands with the long-term weekly trendline resistance extended from the low 0.8231. Therefore, do keep an eyeball on this line this week.
Daily supply...
Following Wednesday’s close above H4 supply at 0.7430-0.7413, yesterday’s Asia segment saw the unit retest the top edge of this area as support and register bullish intent (seen clearer on the H1). Fueled by strong commodity prices, the Aussie aggressively rallied against its US counterpart, consequently surpassing the 0.75 handle and touching gloves with H4...
With the dollar recently losing ground against most of its traded pairs (see the US dollar index), it was no surprise to see the USD/JPY follow suit. Following an aggressive two-(H4) candle whipsaw through a H4 trendline taken from the high 118.40, the unit crashed below both January’s opening level at 116.97 and nearby psychological band 117. This, as can be seen...
