The retreat from the previous day’s high of 1.0720 suggests loss of bullish momentum, despite which the outlook remains bullish as long as the currency pair stays above 1.0654 (Dec 30 high).
A rebound from near 1.0654 followed by a break above 1.0720 would open doors for 1.0770-1.08 levels.
Only a daily close ...
Despite Tuesday's sharp rally, it is too early to say the bird has bottomed out. This is because the descending trend line on the weekly chart is still intact.
Fresh bids are anticipated once the pair breaks above 1.2460. Such a move would confirm double bottom formation and open doors for a rally to 1.2775 levels.
The five daily candles (including today’s) have long tails suggesting dip demand.
Pair’s recovery from 113.625 followed by a recovery above 50-DMA, which is sloping upwards, suggests the spot is likely to revisit 115.00 – 115.50 levels over the next few days.
Pair’s bullish price RSI divergence followed by breach of the descending trend line and a break above the 50-DMA has opened the doors for a rally to 1.07-1.0710 levels…especially if the US advance retail sales number disappoints expectations.
On the other hand, a failure to hold above 1.0622 would be fresh ...
The RSI is hovering in the overbought territory, however, the bullish momentum is very strong and it would take more than just overbought RSI to trigger a correction.
A potential bearish price RSI divergence could yield a corrective move to 7122 levels.
Taking note of the critical levels on the lower side is ...
Cable’s sharp recover from the low of 1.2034 on Wednesday followed by a move higher to 1.2250 levels today in the wake of an oversold monthly RSI suggests a potential for an extended rally to 1.24 handle.
Also note, the area below 1.21 handle acted as a strong buyers’ zone throughout October 2016. The pair’s ...
Despite Tuesday’s bearish inverted hammer at the descending trend line hurdle, the outlook remains bullish as the 5-DMA and 10-DMA are sloping upwards and the daily RSI is above 50.00 levels.
The recovery from the Asian session low of 1.0536 to 1.0660 adds credence to the above bullish argument.
The spot could ...
Broad based USD weakness isn’t helping the British Pound at all as traders continue to unload GBP positions on fears of Hard Brexit.
Despite Tuesday’s rebound from 1.2104… the subsequent failure at 1.2198 in the Asian session today followed by a fall back to 1.2157 suggests the bears remain in control and could ...
Despite the bearish divergence on the daily chart followed by a breakdown of 100-DMA support on Monday, the potential for a sudden rebound is high given the cross is founding support at 140.16 (38.2% fib of 126.735-148.459) amid the rising 50-DMA.
A rebound from 140.16 followed by a break above 141.284 (session ...
First it was the bullish price RSI divergence and now we have a confirmation of the breach of the falling trend line on the weekly chart. The weekly 50-MA is bottoming out as well.
The stock appears on track to test 70.00 levels. Bullish invalidation is seen only if the stock closes on Friday below the weekly ...
Despite Friday’s rally, the failure to hold above 117.00 today in the wake of the daily bearish price RSI divergence suggests the pair is likely to re-test 115.00 handle.
A daily close below 115.00 would add credence to the bearish divergence and signal a top is in place at 118.66 levels.
The daily chart is increasingly looking toppy for the short-run.
The Trump uptrend line was breached ahead of Christmas. Since then the index has had a tough time taking out 2277 (Dec 13 high).
The index dropped to a low of 2233 on Dec 30 only to rebound and suffer exhaustion again around 2270 area. The daily ...
Despite the retreat from the five-day high of 1.0622 to 1.0535 on the back of a strong US wage growth, the short-term outlook stays bullish… courtesy of a repeated failure to sustain below 1.0427 (127.2% Fib extension) and a bullish price RSI/MACD divergence on the daily chart.
The spot remains on track to test ...
Thursday’s Bullish outside/bullish engulfing candle lacks follow through given the prices have dropped today.
A weak closing today would mark the failure of the Thursday’s bullish candle and open doors for a sell-off to 860 levels over the next week.
Pair’s repeated rebound from 1.50 levels in the past few sessions followed by a break above the descending trend line hurdle seen today suggests the cross is likely to test the inverse head and shoulder neckline level stationed around 1.5280.
On the downside, only a daily close below 1.50 would revive bearishness.
Despite pair’s retreat from the intraday high of 1.0575 the short-term bullish view remains intact given the bullish RSI and MACD divergence seen on the daily chart.
The spot appears on track to test the 50-DMA seen now at 1.0658.
Despite Wednesday’s rally to 1.2350, the subsequent failure at 1.2363 earlier today followed by a drop to 1.2275 suggests the losses could be extended further to 1.22.
A break below 1.22 could revive bearish mood and yield a sell-off to 1.2080 levels.
Bullish from the downward channel marks the continuation of the rally from the Brexit day low. On the higher side, major resistance is seen around 1900-1910 levels (falling trend line resistance).
On the downside, only a daily close below 1800 would signal bullish invalidation.