Sterling extended its losses against the U.S. dollar for the fourth consecutive trading day whilst the British pound drove the EUR/GBP pair sharply higher. The upward rally on euro also helped the currency to create a bullish run and rose more than 1.3%, as cable remains subdued due to Brexit concerns. Currently, the price is printing the third positive month in a row and jumped above the 0.8950 critical barrier earning more gains.

The technical indicators are moving higher on the positive path. The RSI indicator is developing within the 50 and 70 level whilst is now sloping slightly to the downside. The MACD oscillator rose above the trigger line but is still moving with weak momentum. The next levels to have in mind is the 0.9025 – 0.9050 resistance area.

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The BTC/EUR surged more than 24% during yesterday’s trading period after the pullback on 1600 strong psychological level last week. Early this morning, the pair managed to challenge a new five-week high at 2532 and then started a downward retracement. Last week’s downward gap recovered successfully and pushed the price sharply higher.

The technical indicators on the daily timeframe are confirming the recent bullish movement as both are developing near its positive levels. The MACD oscillator is moving with strong momentum above its trigger and zero lines while the RSI indicator is sloping up into the 70 level. The next resistance level to watch is the 2480 and then the 2532 barrier. On the other side, if the price slips beneath 2315 will hit the 2127 support level which overlaps with the 100-SMA.

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The U.S. dollar plummeted more than 7.8% versus the Canadian dollar since May and is now posting the third bearish month in a row. The aggressive sell-off on price drove the pair lower after the rebound on the 1.3795 resistance handle and hit our recommended target at 1.2680 (see technical analysis here: http://bit.ly/2tMfPgz). Moreover, on a weekly chart, the price slipped below the 50 and 100 SMAs and remains well below them. Our expectation is an extension of the losses until the 1.2460 key support level.

Looking on the daily timeframe, the RSI indicator sank below the 30 level and is following an oversold path whilst the stochastic oscillator failed to move higher and struggled near the 20 level. Also, the MACD oscillator is strengthening its bearish attitude in the negative zone and is trading below the trigger line.

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It has been a busy trading day on Thursday with the euro heading to new highs following the ECB meeting. The common currency pair challenged an almost 23-month high at 1.1658 and surged 1% in just one trading day. The EUR/USD pair added at its performance almost 10% since March and is creating an aggressive bullish run, recording the fifth straight green month. In addition, the price surpassed successfully the 1.1615 significant barrier and if it ends the month above it, it should only be a matter of time before it breaks the two-year high at 1.1715.

The technical structure suggests further upward movement as both indicators are moving higher. The Relative Strength Index (RSI) approached the overbought zone with strong momentum whilst the MACD oscillator climbed above its trigger line and is rising in the positive territory. The three simple moving averages (50, 100 and 200) are still pointing to the upside indicating bullish bias.

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Thursday, 20.07.2017, 06:59

USD/JPY Bounced Off 111.70 - Next Target 114.40

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Published in Forex

The U.S. dollar traded slightly firmer against the majors counterparts during and after the BoJ monetary policy statement. The USD/JPY pair completed a negative day and recorded the second bearish week in a row. The price plummeted more than 1.4% since Monday, July 10 and is trading below the 200-day SMA. It is worth to mention that the momentum is not clear for the next sessions. The technical indicators on the daily timeframe are developing near its mid-levels with weak momentum. The RSI indicator is sloping up below 50 level whilst the MACD oscillator fell to zero line. If the price plunges below 111.70, it will hit the 108.80 support barrier. On the other side, if the price pauses its correction, it would meet the 114.40 resistance handle.

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The EUR/JPY pair soared gradually higher since April and jumped almost 9% following the pullback on 114.80 strong support level. Euro is printing the fourth consecutive green month against the Japanese yen and hit the 130.75 price, new 17-month high over the last week as it also met the 50-month SMA. Furthermore, going to the weekly chart, the currency pair touched the 200-SMA at 130.75 so, our forecast is a pause of the rising and a start of the downward correction.

Looking on the short-term timeframe, the price failed several times to slip beneath 128.50 and when there is a successful penetration will be an aggressive sell-off for the price until the 125.80 support barrier. The MACD oscillator is declining in the positive zone above zero line whilst the RSI indicator is trading within the 50 and 70 level.

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The Australian dollar had another aggressive rally on Wednesday versus the U.S. dollar and managed to reach a new 2-year high at 0.7988 before the sharp sell-off. The AUD/USD pair is posting the second green month in a row following the pullback on the ascending trend line near 0.7330. The price touched and surpassed our recommended target at 0.7980 (see technical analysis here: AUD/USD Edged Gradually Higher - Soared 1.4% So Far) almost 100 pips gains, and is creating a significant bullish trend.

Since last week, the commodity currency pair added more than 3% at its performance and challenged the 200-month SMA as well as the 200-week SMA. So, our expectation is a downward correction until the 0.7835 support handle. From a technical point of view, the RSI indicator is following the overbought zone but is pointing south signaling for a retracement to the downside. Also, the stochastic oscillator created a bearish crossover within its moving averages confirming the recent fall in price.

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During yesterday’s trading period, the EUR/USD pair traded slightly lower from the 14-month high at 1.1580 and failed to surpass it. The day ended in red and if there is a further bearish movement will create a negative week. The next immediate support barrier is the 1.1490 which is ready to hit it while if the price slips below it will meet the 50-SMA on the 4-hour chart, near 1.1460. On the other side, there is a case of a bounce off 1.1490 and continues its rising.

On the daily and 4-hour timeframes, the indicators are signaling for a retracement to the downside. On the shorter chart, the RSI indicator rebounded on the overbought area and is now approaching the path within 30 and 50 level. Moreover, the MACD oscillator is falling and posted a downward crossover with its trigger line in the bullish zone.

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Wednesday, 19.07.2017, 08:19

EUR/USD Posted a New 14-Month High at 1.1583

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Published in Forex

The EUR/USD pair jumped to its strongest level in 14 months on the back of the weak dollar. The common currency pair rose 0.6% during yesterday’s session and hit the 1.1583 price level. This is the second straight week of gains so far for the pair and pushed the price up almost 10% since January. In addition, the next immediate resistance level to watch is the 1.1615 strong barrier. On the other hand, a small retracement towards 1.1490 is possible and then going back to extend its gains.

From a technical point of view, on the daily chart, the three simple moving averages (50, 100 and 200) are pointing to the upside, confirming the recent bullish movement. The RSI indicator approached the overbought zone whilst the MACD oscillator is climbing above its trigger line with weak momentum. However, the stochastic oscillator is endorsing the scenario for a downside correction.

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The XAU/USD pair surged more than 2.4% since the preceding Monday, July 10 and is creating a bullish move after the bounce off the $1,207 support level. The price hit our recommended target at the $1,240 price level (see technical analysis here: http://bit.ly/2t6F4ut) but there are several obstacles for any upside or downside movement. The price is consolidating within the 50 and 100-week SMAs and we are waiting for a sharp breakout in either direction. To the upside, the price may hit the $1,260 resistance barrier and to the downside the $1,221 obstacle, near the 100-week SMA. RSI is pointing down but is still in the bullish area, whilst the MACD oscillator is inclining in the negative path. Moreover, the stochastic oscillator is in progress to create a bearish cross.

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