EURGBP - LONGTaking support from Fib 50% Level of Last bullish Leg. Made RSI Divergence on 1H TF. Looking for a New High but will take partial profit from highlighted area and remaining will trail.
EURGBP trade ideas
EURGBP Up Up & AwayDaily TF showing break and retest of key level.
Buy Stop 0.85380
4:1 R/R w/ trailing stops
Market News Report - 18 August 2024As it did last week, the yen was the biggest loser, losing against the New Zealand dollar, the Australian dollar, and the British pound.
Fundamentally, our outlooks from last week remain the same for all but one market. Let's cover each one in more detail now.
Market Overview
Below is a brief technical and fundamental analysis breakdown for all major currencies.
US dollar (USD)
Short-term outlook: bearish.
The latest Fed meeting was overall dovish. However, STIR (short-term interest rate) markets have suggested a 53% probability for a rate cut next month, down from 68% last week.
The Fed isn't pressured to lower the interest rate due to recent positive retail sales and employment numbers. While this indicates steady growth, the fundamental bearish outlook remains.
Peep at the FOMC minutes on Wednesday in preparation for the new federal funds rate in mid-September.
The DXY chart aligns perfectly with the fundamentals, having just broken a recent key support. However, the break wasn’t strong enough, so 102.358 is still an area of interest for major support. Meanwhile, the key resistance is far away at 107.348 and will likely remain untouched for some time.
Long-term outlook: bearish.
Markets anticipate at least two rate cuts before the year ends despite there being less urgency on the Fed (as mentioned earlier). The latest Consumer Price Index (CPI) and jobs data indicate a cooling of the US economy, another bearish sign.
Only geopolitical risks, bond market selling, and interest rate differentials can affect this overall sentiment. So, we cannot rule out a bullish fight for the dollar, but it is unlikely to happen, at least quickly.
Euro (EUR)
Short-term outlook: weak bearish.
The latest EU retail sales indicate that the consumer is taking some time to recover from the inflation shock.
The European Central Bank (ECB) has stressed they are data-dependent. For fundamental analysts, it means that certain economic data like employment may boost the euro
While also indicating that their interest rate meeting is 'wide open,' markets see an 87% chance of a cut next month (up from 78% last week).
Interestingly, the chart tells a different story. The euro broke the latest major resistance, a possibility which we suggested in our last report. We must now zoom out to a daily chart to see the next target (1.11396) more clearly.
Meanwhile, the key support area lies far below at 1.06494.
Long-term outlook: weak bearish.
The ECB hasn't committed to a specific future path with the interest rate. They are data-dependent, meaning data around inflation, growth, and wage improvement can lift the euro.
British pound (GBP)
Short-term outlook: bearish.
The Bank of England (BoE) cut the interest rate by 25 basis points at the start of this month. However, they remain data-dependent and have no set future path. STIR markets are currently pricing in an additional two cuts for the remainder of 2024.
A key theme for the central bank currently is fighting persistent inflation in the United Kingdom. Any future misses here would likely weaken the GBP.
As with the euro, the British pound has been saved by dollar weakness on the charts. Still, the major resistance (1.31424) is some distance away, while the key support (1.26256) is also far away.
With both outlooks for GBP and USD being bearish, this market is open to moving in any direction going forward.
Long-term outlook: weak bearish.
The interest rate is the chief bearish driver for the pound. However, STIR markets predict a rate hold next month. Furthermore, two-way risks remain based on upcoming economic data (e.g., inflation, labour, economic growth).
Japanese yen (JPY)
Short-term outlook: weak bullish.
The Bank of Japan’s (BoJ) recent decision to hike the interest rate is bullish for the yen. However, STIR markets expect a hold (100% probability, from 95% last week) at the next meeting.
Watch out for the year-on-year inflation rate for JPY on Friday.
USD/JPY continues to cool down or retrace after its multi-week massive decline.
The major support level to watch is 140.252. Meanwhile, the major resistance (at 161.950) is too far for traders to worry about.
Long-term outlook: weak bullish.
In addition to the recent rate hike, other bullish catalysts for the yen include lower US Treasury yields.
The Bank of Japan is actively intervening in the forex markets, contributing to the JPY's upside last month. However, having moved quite a distance, a further retracement is imminent.
Australian dollar (AUD)
Short-term outlook: weak bullish.
The Reserve Bank of Australia (RBA) unsurprisingly kept the interest rate unchanged on Tuesday to keep the fight against persistent inflation rate. Based on their language, a hike isn't out of the question this year.
Like many currencies, the Aussie remains data-sensitive, whether we look at economic growth, labour, or inflation going forward. The recent rise in China's share prices, which correlates with the Aussie, has been positive for the currency. Still, there is doubt over the longevity of this run.
As further proof of the short-term outlook, the Aussie market has risen noticeably. It's only about 130 pips away from the nearest major resistance at 0.67986, while the major support level is down at 0.63484.
Long-term outlook: weak bullish.
The RBA remains hawkish as per last week's meeting, focusing on core inflation. Overall, it's crucial to be data-dependent with the Aussie, with recent labour data keeping the bullish script alive.
However, keep in mind that the Australian dollar is exposed to slow economic growth in other countries, being a pro-cyclical currency.
New Zealand dollar (NZD)
Short-term outlook: bearish.
The New Zealand dollar is the only currency for which we have updated the short-term outlook (from neutral to bearish). This is mainly due to the central bank dropping the Kiwi's interest rate from 5.50% to 5.25% last Monday.
Lower-revised cash rate projections also hint at the potential for further cuts in the near future.
Diarise the upcoming new year-on-year retail sales number as the main high-impact news for the Kiwi.
Like its closest relative (AUD), the Kiwi has retraced upwards after just scraping the recent support area at 0.58524. This still remains the focal point, while the major resistance is at 0.62220, an area which it is unlikely to test soon.
Long-term outlook: weak bearish.
The central bank's dovish stance in its latest meeting (where it cut the interest rate) puts the Kiwi in a 'bearish bracket.'
However, as a risk-sensitive currency like the Aussie, any growth data in China could trigger bullishness for NZD. As with its counterpart, traders should be data-dependent.
Canadian dollar (CAD)
Short-term outlook: bearish.
The ongoing mortgage stress in Canada has forced the Bank of Canada (BoC) to be dovish, the first major bearish catalyst. With a rate cut last month, STIR markets have raised the probability to 99% (from 88% a week ago) of the same next month.
Watch out for the upcoming data on the CAD inflation rate and retail sales this week.
Thanks to dollar weakness, the CAD continues to strengthen mildly. It now looks to test a fairly recent major support target at 1.35896, while the major resistance is far ahead at 1.39468.
Long-term outlook: weak bearish.
Expectations of a rate cut remain the focal point, with the BoC governor Macklem himself saying it's reasonable to expect more cuts in the future. Moreover, STIR markets have priced in an additional cut sometime this year (aside from the one for next month).
The mortgage stress remains a major factor in this interest rate policy, and the BoC will have to cut rates to alleviate it.
However, encouraging oil prices, along with improvements in jobs, inflation, and GDP, may redeem the Canadian dollar.
Swiss franc (CHF)
Short-term outlook: bearish.
STIR markets forecast a rate cut in September (an 82% chance) and December this year.
Secondly, SNB expects a moderate improvement in inflation, GDP (Gross Domestic Product), and unemployment to rise slightly in the near term.
However, the Swiss franc can strengthen during geopolitical tensions like the Middle East crisis.
Despite a notable retracement, USD/CHF is largely bearish. The key support area to consider is 0.84323. Meanwhile, the major resistance level is far higher at 0.92244.
Long-term outlook: weak bearish.
The expected rate cut in the next SNB meetings for 2024 is the main bearish driver. However, the SNB's chairperson, Thomas Jordan, expressed that "appreciation of the Swiss Franc has an impact on monetary policy." This means that potential intervention by the central bank can go either way.
Conclusion
The fundamental outlooks of each currency have remained unchanged from the previous weeks, except for the New Zealand dollar. However, as expected, prepare for anything on the charts while aligning this activity with the fundamental summaries.
EUR/GBP Trading ReportDate: August 15, 2024
Instrument: EUR/GBP
Timeframe: 4 H
Trade Type: Long Position
1. Market Analysis:
Pattern Observed: A bullish flag has formed and completed on the EUR/GBP chart, signaling a potential continuation of the prior uptrend.
Pattern Characteristics: The bullish flag is a continuation pattern that typically follows a strong upward move, with the flag portion representing a brief consolidation before the trend resumes.
2. Trade Setup:
Long Position:
Entry: Planning to enter a long position at 0.85319 OR at the breakout above the flag's upper boundary, confirming the continuation of the uptrend.
Stop Loss: Placing a stop loss below the flag's lower boundary or recent low at 0.85092, to protect against a false breakout.
Take Profit: Targeting the next significant resistance level or measured move objective at 0.86374, based on the height of the flagpole.
3. Risk Management:
Position Size: Adjusting the position size to risk no more than 1-2% of trading capital.
Risk-Reward Ratio: Ensuring a risk-reward ratio of at least 1:4, providing a favorable potential outcome.
4. Outlook:
Bullish Bias: The completion of the bullish flag suggests strong bullish momentum, with the potential for further upside as the trend resumes.
EUR/GBP Trading ReportDate: August 15, 2024
Instrument: EUR/GBP
Timeframe: 4 H
Trade Type: Long Position
1. Market Analysis:
Pattern Observed: A bullish flag has formed and completed on the EUR/GBP chart, signaling a potential continuation of the prior uptrend.
Pattern Characteristics: The bullish flag is a continuation pattern that typically follows a strong upward move, with the flag portion representing a brief consolidation before the trend resumes.
2. Trade Setup:
Long Position:
Entry: Planning to enter a long position at 0.85319 OR at the breakout above the flag's upper boundary, confirming the continuation of the uptrend.
Stop Loss: Placing a stop loss below the flag's lower boundary or recent low at 0.85092, to protect against a false breakout.
Take Profit: Targeting the next significant resistance level or measured move objective at 0.86374, based on the height of the flagpole.
3. Risk Management:
Position Size: Adjusting the position size to risk no more than 1-2% of trading capital.
Risk-Reward Ratio: Ensuring a risk-reward ratio of at least 1:4, providing a favorable potential outcome.
4. Outlook:
Bullish Bias: The completion of the bullish flag suggests strong bullish momentum, with the potential for further upside as the trend resumes.
EURGBP: Intraday Bearish SIgnal 🇪🇺🇬🇧
I see a strong trend-following pattern on EURGBP.
After a bearish wave, the price formed a symmetrical triangle formation.
A breakout of the support of a triangle is a strong bearish signal.
It signifies the strength of the sellers and a highly probable
bearish continuation.
Next support - 0.8502
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Nice entry for Long Nice entry for Long on daily chart as shown strong area
its a retest after break
targets are shown
stop will be under the area fixed or daily candle closer is better depends on your risk management
EURGBP1.EURGBP has been dropping for the past few days.
2.It was reacting from support anf resistance trendline as it was progressing with a downtrend move.
3.Now the reaction has occured at the declining support trendline.
4.The price formed a reversal pattern after the reaction which marks it a very interesting point to enter Buy Trade.
5.We buy EURGBP
Possibility of uptrend The price is expected to consolidate above the current support range, then the start of an uptrend is likely.
If the price crosses the support range, the downward trend is likely to continue
Eurgbp Eurgbp I made a post on this pair last but the was a mistake so we hv price were we want it we are waiting 4 a reversal candle to the upside
Selling eurgbpCurrently trading in a downstairs after reseting from a strong supply zone on daily chart
EURGBP - Case of Divergence on MACD and Crab PatternEURGBP has formed bullish divergence on MACD scale and also seems to be completing a bullish crab pattern. Price is expected to rebound from Potential Reversal Zone marked in rectangle.
EUR-GBP Support Ahead! Buy!
Hello,Traders!
EUR-GBP keeps falling
But will soon hit a
Horizontal support level
Of 0.8500 and after that
We will be expecting
A local bullish rebound
Buy!
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Check out other forecasts below too!
SLThere are numerous trading strategies employed by traders in financial markets. The choice of a specific strategy depends on factors such as the trader's risk tolerance, time commitment, market conditions, and financial goals. Here are some common trading strategies:
Day Trading:
Objective: Capitalize on short-term price movements within a single trading day.
Approach: Execute multiple trades during the day, closing all positions before the market closes.
Key Consideration: Requires significant time and attention to intraday market movements.
Swing Trading:
Objective: Capture "swings" in asset prices over a period of days or weeks.
Approach: Identify trends and enter/exit positions to benefit from short to medium-term price changes.
Key Consideration: Less time-intensive compared to day trading, but still involves active monitoring.
Trend Following:
Objective: Capitalize on established market trends.
Approach: Enter positions in the direction of the prevailing trend and exit when the trend reverses.
Key Consideration: Requires identifying and confirming trend directions using technical analysis.
Contrarian Trading:
Objective: Profit from trend reversals.
Approach: Go against prevailing market sentiment, assuming that the current trend is about to change.
Key Consideration: Contrarian strategies can be riskier and require careful risk management.
Scalping:
Objective: Make small profits from very short-term price movements.
Approach: Execute a large number of trades in a single day, each aiming for a small profit.
Key Consideration: Requires low transaction costs and a high level of discipline.
EURGBPPrice is near HTF OB, and i'm expecting price to bounce on the zone or take the last high liq before the retest on the zone. More confluence to be created during the week days and i'll be looking for market shift + FVG above the high or at the zone.
Stay tuned and lets see how it plays.
EUR/GBP SENDS CLEAR BULLISH SIGNALS|LONG
Hello, Friends!
EUR/GBP is making a bearish pullback on the 5H TF and is nearing the support line below while we are generally bullish biased on the pair due to our previous 1W candle analysis, thus making a trend-following long a good option for us with the target being the 0.854 level.
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EURGBP ANALYSISLorem ipsum dolor sit amet. Eum obcaecati error et nihil voluptas et voluptas vero est similique nulla qui internos voluptatum et sunt earum qui laudantium veritatis? Est dolorem deserunt et aspernatur iste ex eaque exercitationem est dolores facilis.
EURGBP Sellers In Panic! BUY!
My dear friends,
My technical analysis for EURGBP is below:
The market is trading on 0.8525 pivot level.
Bias - Bullish
Technical Indicators: Both Super Trend & Pivot HL indicate a highly probable Bullish continuation.
Target - 0.8569
Recommended Stop Loss - 0.8497
About Used Indicators:
A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames.
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WISH YOU ALL LUCK
EURGBP to find buyers at market price?EURGBP - Intraday
Preferred trade is to buy on dips.
We look to buy dips.
Daily signals are bullish.
20 1day EMA is at 0.8517.
We look for a temporary move lower.
We look to Buy at 0.8515 (stop at 0.8491)
Our profit targets will be 0.8575 and 0.8590
Resistance: 0.8535 / 0.8550 / 0.8575
Support: 0.8528 / 0.8515 / 0.8500
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
EURGBP Will Grow! Buy!
Here is our detailed technical review for EURGBP.
Time Frame: 4h
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is approaching a key horizontal level 0.852.
Considering the today's price action, probabilities will be high to see a movement to 0.855.
P.S
We determine oversold/overbought condition with RSI indicator.
When it drops below 30 - the market is considered to be oversold.
When it bounces above 70 - the market is considered to be overbought.
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