The EURGBP is trading between a bear flag and has now been rejected from resistance.
The overall momentum is bearish.
We can now expect a move towards the next support zone at 0.8750.
Trade with the trend.
It appears there could be some more strength going back into the GBP.
Check out or other post on the GBPJPY below.
Any thoughts please comment,
Apples stock price is now approaching a major double top.
There is also a strong ascending wedge formation on the stock price.
We will be looking to short sell in the company waiting for a break below the wedge line.
Any thoughts or comments let us know,
The GBPJPY made a large recovery on the news a no-deal Brexit has been blocked by the UK Government.
There has been a nice cup shape recovery, followed by a retracement down to the 61.8% FIC level.
This is also a major support zone.
Johnson is now negotiating with the EU about the Irish boarder issue.
Any positive news coming from the negotiations...
We are currently watching this pair for a potential bull flag, and a break higher towards the shoulder line.
Major resistance found at 1.6420. We will look to enter a sell position from the shoulder line with a long term target of 1.5900.
The RBA will cut interest rates tomorrow therefore expect volatility on all AUD pairs.
Short term we are...
This week it is time to short the USD.
The DXY has been a very nice tool to use when looking for forward movement across all USD pairs.
The DXY has been trading between an 'ascending wedge' /inclining channel for some time now.
This means we can look at other currencies to buy against the USD.
Check out our analysis on the EURUSD and...
There is currently a gap in the market which is yet to be filled at 1.0780.
Any short term spike in the market is an opportunity to sell lower.
Germany is in a recession and the EU as a group is not far behind.
The ECB has also cut interest rates into the negative territory, therefore the EUR is bearish long term.
The DXY is due a pull back...
The NZDUSD has created a descending wedge signalling a potential reversal.
There is a bullish divergence on the RSI signalling upside.
The USD Index has also reached a sell zone - Check DXY Index
The RBNZ held interest rates steady which could provide strength back into the NZD.
We will look to buy from the double bottom (check weekly charts)...
The USD gained a lot of strength early hours this morning during Trumps speech.
Trump suggested he was positive on making a deal with China, Japan and the UK after Brexit.
GOLD dropped due to decreased demand of safe haven assets.
The head and shoulders pattern is suggesting a break towards the 61.8% FIB level at roughly 1450.
This is also...
Manufacturing PMI is a leading indicator of when an economy enters a contraction phase, recession and expansion phase.
A result below 50 signals a contraction, a result below 45 signals a recession.
Germany has now entered a recession as they reported another weak market manufacturing PMI result of 41.4.
The EUR also reported a market manufacturing...
This week the RBNZ will decide if they will hold interest rates steady after they look a 50 basis point cut during their last meeting.
This shocked the market as they had forecast only a 25 basis point cut previously, therefore the NZD took a larger loss.
This week the RBNZ is expected to hold rates steady, on the other hand, the RBA is looking at...
The S&P 500 has retested a broken wedge formation, there is also a head and shoulders formation, if this plays out there could be a significant drop coming for the US index. Generally speaking the head and shoulders formation will break lower than the neck line.
China has just cancelled a meeting with US farmers suggesting a trade war deal is...
With all the geo-political risks going on globally, tensions in Iran, the trade war between the US and China, and numerous recession indicators flashing red, gold is providing an opportunity to buy and hold for the foreseeable. GOLD needs to break above the 1560/1570 level, we can then see gold reaching and matching the 1770 highs seen in 2011....
EURUSD - Daily candles has broken a descending wedge pattern and is using the wedge as support.
There was a bullish divergence on the RSI
If the FED cut interest rates, or give an indication of a rate cut next month we could see a weaker USD.
This could give the EURUSD a significant move towards the 1.1600 area.
If the EURUSD makes it to that zone, this could...
The NZDUSD has bounced on a support level after previously forming a bullish divergence on the RSI.
This pull back has formed an inverted head and shoulders pattern.
We are now looking to go long on the pair with the first target being 0.6681
Short term the NZDUSD has created a bearish pennant formation - we could see the NZDUSD re-test the 0.6500 area
However, long term there is a bullish RSI divergence suggesting there could be some upside back towards the 0.6630 resistance level.
This will depend on the trade war/ RBA and RBNZ interest rate decision in the coming days