Trade update: The short position taken from 1.2972 was recently stopped out at 1.3005.
In recent trading, we’ve seen the H4 candles punch back above the 1.30 region and tap a high of 1.3013. This move has very likely triggered a truckload of stop-loss orders, including ours! However, all may not be lost here! The current H4 candle is looking incredibly bearish...
Weekly gain/loss: - 303 pips
Weekly closing price: 1.2962
The USD/CAD suffered a nasty decline in value last week, losing over 300 pips in the process! Consequent to this, weekly price is now trading beneath the 1.3006-1.3115 area, which was a respected area of support. Worryingly for the bulls on the weekly timeframe is that the the next area of interest is a...
Weekly gain/loss: + 308 pips
Weekly closing price: 1.3026
The GBP/USD had an absolutely smashing week, netting over 300 pips! This resulted in a near-full-bodied weekly bullish candle being created, which closed within the confines of a weekly supply zone printed at 1.3120-1.2957. In the event that the bulls continue to remain dominant, the next area in the...
Weekly gain/loss: + 225 pips
Weekly closing price: 1.1417
Over the last week, the EUR/USD bulls went on the offensive and aggressively closed within the walls of a major weekly supply zone drawn from 1.1533-1.1278. Considering that this area has been in motion since May 2015, and held price lower on several occasions since then, we feel the bears will not give up...
It’s reasonably easy to see who’s been in control on the weekly timeframe over the past few weeks. Since tapping the area comprised of two weekly Fibonacci extensions 161.8/127.2% at 1313.7/1285.2 taken from the low 1188.1 (green zone), the bears have, albeit apart from one week, put on a rather dominant performance. The next downside target in the firing range...
As highlighted in Thursday’s report, the 0.9546/0.9581 green area painted on the H4 chart, which is comprised of weekly and daily support levels, continues to be a zone our desk favors for potential longs. However, what we also made clear was that in order to confirm buyer intent within the walls of this zone, a H4 bullish rotation candle in the shape of a full...
In recent trading, the AUD/USD pushed higher for a second consecutive day, breaking through a H4 resistance at 0.7676 which is now being retested as support. The next upside target from this number is the 0.77 handle. While the bulls are displaying clear strength at the moment, there could be trouble ahead!
The weekly timeframe clearly shows the bulls heading...
The GBP/USD is an interesting market at the moment, especially from a technical standpoint. The H4 timeframe shows that price recently crossed the large psychological boundary 1.30, which, as you can see, is currently being retested as support. To the left of current price, notice that we have drawn a mini down trendline. This is to represent what we believe to be...
In recent trading, the single currency gravitated north and found resistance around the daily Quasimodo formation pegged at 1.1382. This was a noted level to look for shorts due to this barrier being positioned within the walls of a weekly supply at 1.1533-1.1278. In addition to this, we liked the fact that the Quasimodo was (and still is) located just below a...
As anticipated, the H4 ascending channel formation (1.3165/1.3308) gave way during yesterday’s sessions. This was something we mentioned in past reports, and the reason we believed this to be the case was not only did we have daily resistance at 1.3272 in play, but let’s also not forget that the current weekly demand was also hanging on by a thin thread.
In...
With weekly price recently finding a floor of support around the 110.30 mark, we see two possible scenarios on the weekly timeframe at the moment:
• To the downside, a weekly AB=CD correction (see black arrows) that terminates within a weekly support area marked at 105.19-107.54 (stretches all the way back to early 2014) may form in the coming weeks.
• To the...
Weekly gain/loss: - 46 pips
Weekly closing price: 0.9691
Although weekly price remains buoyed above the weekly Quasimodo support level at 0.9639, the bears made an appearance last week, and thus could force the unit back down to the said weekly Quasimodo.
The view from the daily timeframe shows price trading between the aforementioned weekly Quasimodo support...
Weekly gain/loss: + 56 pips
Weekly closing price: 1.3268
Weekly demand at 1.3223-1.3395 remains under pressure. We can see that weekly bulls did attempt to advance but failed to cover much ground. In the event that the bears remain dominant here, odds are that the weekly demand base pegged below at 1.3006-1.3115, which happens to intersect with a weekly trendline...
Weekly gain/loss: - 3 pips
Weekly closing price: 1.1192
Over the past five weeks, we have seen the weekly candles cling to the underside of a major weekly supply at 1.1533-1.1278. Overlooking this zone is not something we’d advise considering that it has been in play since May 2015, and held price lower on several occasions since then. Should the bears eventually...
Similar to the EUR/USD, a market that tends to correlate well with the price of gold, the yellow metal shows a possible H4 AB=CD bearish correction at hand. The bounce from April’s opening level at 1248.0 formed a potential C-leg, and could lead to price rallying today and touching gloves with the H4 AB=CD 127.2% ext. point at 1258.3. Not only do we have this, but...
For the most part it was a relatively quiet session on Thursday. The H4 candles failed to sustain gains beyond the 1.1170 mark, and concluded the day printing a bullish buying tail off the mid-level support at 1.1150. According to the daily timeframe, which happens to be trading within the walls of a demand area coming in at 1.1075-1.1158, 1.1150 may well hold as...
For those who read Monday’s report on the USD/CAD you may recall that our desk underscored the possibility of a long trade from the 1.32 handle. As you can see, in recent hours 1.32 was challenged and has held firm. But why did we select this level? For anyone who missed Monday’s report, here’s why:
1.32 could be an option today. A break below the daily support...
Weekly gain/loss: - 250 pips
Weekly closing price: 1.3212
During the course of last week’s trading the USD/CAD plummeted lower, marginally closing beyond weekly demand at 1.3223-1.3395. While this recent break could imply that a move down to weekly demand at 1.3006-1.3115 (converges with a weekly trendline support taken from high 1.1278) may take place, there’s...
