As I predicted yesterday, today was a bearish day for EUR/USD. Looks like it's gonna close near 1.12 figure heading into the Asian session.
Bears need to break 1.119 hourly support first and close below the next support around 1.1172 to confirm the bearish bias.
Watch out for tomorrow's economic indicators: German GDP, European GDP and Us retail sales.
Fundamental analysis: Although signs of small recovery of the euro zone started showing according to economic indicators, trade war escalation raised markets concerns of slowing global growth which is not benefiting the European union nor giving any hopes of rate hikes by the ECB, therefore giving the USD more strength as a safe haven.
Technical analysis: EUR/USD...
After dropping sharply following disappointing PMIs datas in the european union, the pair rallied creating a bearish flag, a continuation pattern usually. Today, markets broke down this pattern support and touched 1.119, near YTD lows. Note that markets kept buying those levels for the recent past, that’s why bears need a sustained break below 1.1175 to confirm a...
This pair has been trading in a narrow range for the recent days where bulls and bears are fighting to take control
Bulls aim to break 1.132-3 resistance area in order to keep advancing towards higher levels near 1.139 where sits a 7-month down trend-line.
Bears aim to break 1.127-5 support area in order to keep retreating towards lower levels near...
Euro is trading in a bear trend well below its main moving averages and oscillators in negative territory which indicates more downside pressure in the days ahead.
After failing to recover beyond 1.133 resistance it is now trading near 1.125 approaching 78.6% fibo level of the recent up move.
In my opinion it may retest the recent trend line near 1.13 figure but...
To sum up recent activities, EUR/USD rallied to 1.144 7 days in a row last week after having bottomed at 1.117 (61.8 fibo level of 2017-2018 uptrend) and stopped the rally around the 50% fibo of the same uptrend. Dovish fed underpinned the euro further more during the rally. However, the next day after the fed it erased most of the gains and...
As I posted before about a Head and Shoulders pattern developing on 4h and daily aussie chart, the pair is apparently breaking the neckline supported by broad usd strength.
As stated before the target of the pattern is calculated by projecting from the neckline the distance between the head and the neckline which is around 0.68.
As mentioned in my previous post the pair broke below the rising wedge and failed to recover.
The ECB meeting today also disappointed with its dovish message and downgraded growth forecasts.
Also, the committee is launching TLTRO program soon which also increased the pressure on the pair.
My initial target for the rising wedge breakout is 1.1180 which is also...
As shown on the chart, on 4h time frame the pair has formed a rising wedge pattern which is usually a reversal pattern.
In order to be confirmed, a 4h candle must close below the lower trend line around 1.137 which is also 50% fibo level of Jan-Feb down move.
Only a close above the upper trend line around 1.14220 can invalidate this pattern. The first attempt...
EUR/USD has been stuck in a tight range since October between 1.1215 and 1.15.
The pair is underpin by trade relief between China and the US and dovish Fed, but an economic slowdown in Europe and brexit is limiting its gains.
Uncertainties around the euro zone remain high, but I think that a breakthrough is around the corner.
This range will stay until a major...
The British pound is ending the month of February with a bullish move, up 0.50% after rumors of brexit delay in case a deal cannot be agreed on before end of March; offering some market relief and helping GBP/USD recovering almost all its February decline.
Looking at the chart, the pair is trading above its main MAs which indicates positive momentum. Also broke a...
Possible head and shoulders pattern on AUD/USD 4-hour time frame.
It is a reversal pattern.
Target: distance from neckline to head which is around 200 pips.
If neckline is broken (around 0.705) target is around 0.68.
Fiber is up 0.50% today after 6 days of consecutive losses forming a bullish engulfing or outside reversal which indicates that the selling pressure is subsiding for the time being.
We need to pay close attention to the next resistance level around 1.1350 ( friday's high and 23.6% fibo level ).
Surpassing this level exposes the lower boundary of the uptrend...
Cable is trading in a bearish trend below its 200D SMA and is being driven by brexit uncertainty that is rising day over day, affecting market sentiment and businesses all over the UK. Currently, hopes of reaching a brexit deal are shrinking which will continue putting downside pressure on this pair.
Also, a potential head and shoulders can be spotted on the 4...
The Australian dollar is trading well below all its main moving averages on the daily charts. With RBA also cutting growth forecasts and projections I am bearish on this pair and technically a brake of the 0.70600 critical long term support exposes this pair to the 0.70000 figure and below re-testing the upper boundary of the downtrend shown on the chart.
I would like to take your opinions on this Elliott wave study that I just made.
According to it EUR/USD is now trading in the 3rd subwave of the main 3rd wave which is the longest which is gonna send this pair for the near-medium term below 1.12.
Please comment if You agree.
Fundamental Analysis: While the message delivered by the Fed in it's last meeting was dovish and future path will be "patient" , the European economy isn't doing any better(Germany,France and Italy suffering from contraction), inflation not picking up towards Ecb's target, brexit uncertainty and the slowing global growth. Both sides are facing downside risks but...
After suffering large losses on Thursday following disappointing datas and dovish Draghi , EUR/USD recovered all its losses on Friday and ended the week positively.
I spotted a bullish engulfing candle on the daily chart which shows upside reversal.
Next target for bulls is 1.142 ( January 16 high ) and 38.2 Fibo. , 1.144 and 1.15 psychological mark.