USD/CHF prices are little changed this morning, despite ranging around 70 pips on the day. To make a long story short, here is what our eyes are drawn to on the H4 chart currently:
• Parity (1.0000). A number watched by the majority of the market.
• Three H4 trendline resistances that merge beautifully with 1.0000 (0.9959/1.0335/1.0122).
• H4 Fib extension 161.8%...
Yesterday’s action began with Australia’s trade balance reporting a $3.5b surplus in December, up from $2.0 b in November. The Aussie bulls immediately rose up and took charge, rallying over 70 pips on the day (open/close). Psychological resistance 0.76 was consumed during the bullish assault, allowing price to challenge the H4 channel resistance extended from the...
For those who read our previous report on the GBP you may remember that we highlighted the 1.27 region as a potential level to sell from, given its surrounding confluence (H4 Quasimodo resistance at 1.2699 and housed within a daily supply at 1.2728-1.2657, as well as positioned only 25 or so pips above the weekly Quasimodo resistance at 1.2673). Helped by the BoE...
For those who read Wednesday’s report on the EUR you may recall that our desk executed a market sell order at 1.0798, with a stop placed at 1.0824. Fueled by the upbeat numbers seen from both the US ADP non-farm employment change and US manufacturing PMIs, the trade struck the H4 support area at 1.0765-1.0753 during yesterday’s sessions. 50% of the position was...
In our previous report, we noted to keep an eyeball on the H4 demand area penciled in at 112.05-112.37. This base commanded the backing of the current daily demand at 111.35-112.37, which itself is further reinforced by a weekly support area at 111.44-110.10. As is evident from the H4 chart, the unit aggressively drove into the jaws of this zone yesterday and...
For those who read Tuesday’s report on the GBP you may recall that our desk highlighted the 1.24/1.2440 region (yellow box) as a rather attractive H4 buy zone. It comprised of a H4 AB=CD 161.8% Fib ext., the 1.24 handle, a H4 trendline support taken from the high 1.2432 and boasted additional backing from a daily support area chiseled in at 1.2510-1.2415. Well...
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...
