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EUR/USD: CONFIRMED "DOUBLE TOP"

07:10 23.05.2017

 

1495523320-76a61b254c9cf5f0decfe31d7e960

 

The price faced resistance at 1.1249, so there's a consolidation. Also, we've got a "Double Top" pattern, so the pair is likely going to test the nearest support at 1.1171 - 1.1139 in the short term. If a pullback from this area happens, there'll be an opportunity to have another bullish movement towards resistance at 1.1287 - 1.1307.

 

1495523320-94a4d5b57d836b9c00e186d31b8fb

 

There's a "Double Top", which has been confirmed. Therefore, bears are likely going to reach support at 1.1160 in the coming hours. At the same time, if we see a pullback from this level, bulls will have an opportunity to achieve resistance at 1.1249 - 1.1279.

 

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GBP/USD: BEARISH "THORN"

07:12 23.05.2017

 

1495523321-f2407991b10ae38fd90393b8c47da

 

There's a consolidation, which is taking place along the 34 Moving Average. In this case, we should keep an eye on support at 1.2945 - 1.2913 as an intraday bearish target. If a pullback from these levels happens, the pair is going to rise in the direction of the next resistance at 1.3057 - 1.3090.

 

1495523321-d5b195f5076479d85404357da57d6

 

We've got a "Thorn" under resistance at 1.3047, so the price is consolidating. The 55 Moving Average is acting as support. Under this circumstances, bears are likely going to reach the closest support at 1.2913, which could be a departure point for an upward price movement towards resistance at 1.2988 - 1.3023.

 

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EUR/USD: "WINDOW" WAITING FOR BULLS

09:33 23.05.2017

 

1495531972-84e9ba956b60a30bff226dbbe1cbc

 

The price has been rising since the last "Hammer" was formed on the lower "Window". There isn't any reversal pattern so far, so the market is likely going to test the upper "Window" in the short term. If any bearish pattern arrives afterwards, there'll be an opportunity to have a downward correction.

 

1495531972-1269d10589be77f81d57a7537eef0

 

We've got an "Engulfing", but this pattern hasn't been confirmed yet. Therefore, if a pullback from the closest support happens, bulls are likely going to deliver a new local high.

 

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USD/JPY: BULLISH "HAMMER" STILL ON THE TABLE.

09:38 23.05.2017

 

1495531972-e1a076c7ab89ac358d33d8b3522f1

 

The price is still consolidating in a tight range. However, the last bullish "Hammer" is on the table, so bears are likely going to test the 144 Moving Average soon. If a pullback from this line happens, there'll be an option to have a downward movement towards the nearest support level.

 

1495531972-46184ce5c26d8948b33f28b0104c7

 

The lower "Window" is acting as strong support, so we've got a lot of pullbacks from this level. Also, there's resistance by the 34 Moving Average. In this case, bulls are likely going to test the 89 Moving Average in the coming hours. If we see a pullback from this line, bears will have an opportunity to push the price towards the last low.

 

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EUR/USD: PULLBACK FROM 8/8 MM LEVEL

12:37 23.05.2017

 

1495542975-a50d1d026480a4662195ebf868119

 

The price is trying to form a pullback from 8/8 MM Level, so wave [y] of 2 may have been ended. In this case, we should keep an eye on 6/8 MM as a local bearish target.

 

1495542975-29ed35186792b224662783a48725e

 

Bulls couldn't fixate above 8/8 MM Level, so there's time for a correction. Therefore, wave © of [y] likely finished. The main target for wave (i) is 6/8 MM Level.

 

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USD/CHF BROKE SUPPORT ZONE

16:48 23.05.2017

 

USD/CHF broke support zone

Next sell target - 0.9670

USD/CHF continues to fall after the earlier breakout of the support zone lying at the intersection of the support level 0.9750 (sell target set in our earlier forecast for this currency pair) and the support trendline of the wide daily down channel from the start of March. The breakout of this support zone accelerated the active impulse wave 3.

 

USD/CHF is expected to fall to the next sell target at the support level 0.9670 (target price calculate for the completion of the active impulse wave 3).

 

9NKDlp78k.png

 

 

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EUR/AUD REVERSED FROM RESISTANCE LEVEL 1.5060

16:49 23.05.2017

 

EUR/AUD reversed from resistance level 1.5060

Next sell target - 1.4900

EUR/AUD recently reversed down from the powerful resistance zone lying between the major, multi-month resistance level 1.5060 (which reversed the price in the middle of September) and the upper daily Bollinger Band. If the pair closes today near the current levels it will then form the daily Japanese candlesticks reversal pattern Evening Star Doji.

 

Given the strongly overbought reading on the daily Stochastic indicator - EUR/AUD can be expected to fall to the next sell target at the support level 1.4900 (former resistance level from the start of May).

 

9NS1mxyhN.png

 

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AUD/USD: MARKET RETURNED INTO CLOUD

05:13 24.05.2017

 

Technical levels: support – 0.7370, 0.7400/10; resistance – 0.7450.

 

Trade recommendations:

 

Sell — 0.7440; SL — 0.7460; TP1 — 0.7340; TP2 — 0.7310.

Buy — 0.7460; SL — 0.7440; TP1 — 0.7520; TP2 — 0.7560.

Reason: narrow bullish Ichimoku Cloud, horizontal Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen; the prices are entered into the Cloud.

 

1495602817-42a68b4bfa2f0515dfbaa054e9dba

 

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USD/JPY: BULLS TOOK OFFENSIVE

05:14 24.05.2017

Technical levels: support – 111.30, 110.15; resistance – 112.20.

 

Trade recommendations:

 

Buy — 111.60; SL — 112.40; TP1 — 112.20; TP2 — 113.20.

Reason: narrowing bearish Ichimoku Cloud, horizontal Senkou Span B; a new golden cross of Tenkan-sen and Kijun-sen; the prices are entered into the Cloud.

 

1495602886-3dcc4d3b0e9d38341d309e86e7227

 

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MORNING BRIEF FOR MAY 24

06:17 24.05.2017

 

The USD strengthened in Tokyo morning against its major peers due to rising 10-year Treasury note yield climbing 3 basis points overnight. The news that Trump asked intelligence directors to deny any collusion between his election campaign and Russian entities is no longer fresh one. The US political wrangling has stopped pressuring the greenback. Investors are now turning their focus towards the FOMC meeting minutes which are due at 9 pm MT time. You should pay closer attention to the phrases mentioning the pace of interest rate increases and to discussions about how to wind down the Fed’s balance sheet. A June hike still looks like as a base case scenario with investors pricing it at 83.1%. If there are some doubts over further upsurge in inflation rates, the USD will be hurt.

 

The euro lost its momentum and nudged away from its recent high of 1.1268 that was hit the previous day following the solid PMIs releases from the euro area. The German Ifo business climate spiked to a new all-time high. Europe’s composite PMI reading was unchanged at 56.8 suggesting that there were some offsetting weaknesses in the releases of other EZ countries. Germany will release its consumer confidence reading at 9 am MT time; the ECB President Mario Draghi is due to speak at 3:45 p, at the First Conference on Financial Stability in Madrid. At the present moment, EUR/USD is trading at 1.1180. The odds for upsurge towards 1.3000 are not high, but the bullish phase in the pair is still intact.

 

The British pound recouped some of its losses obtained in the wake of the suicide bombing in Manchester. GBP/USD edged up a few points higher (to 1.2975). The current mild downward pressure may send GBP towards 1.2920. A hike above 1.3000 will allow us to target 1.3050. For the present moment, the technical outlook is neutral.

 

AUD/USD dropped to 0.7445 after the Moody’s announcement downgrading China’s sovereign rating to A1 from Aa3. China’s massive debt had been at the center of concerns among economists. The downgrade warns us about slowing economic growth in the People’s Republic of China. Additional pressure came following the disappointing release of the Australian construction work done data. Iron ore prices were also lower in China today.

 

USD/CAD was trading higher at 1.3535 from yesterday’s low at 1.3452. Today’s focus will be on the Bank of Canada’s official rate announcement. The central bank is unanimously expected to stand pat tonight, but with core CPI trending lower we expect the bank will remain its easing bias. The oil prices were under pressure yesterday weighed down by Trump’s plan to sell off some of the US crude oil stockpiles to generate revenue and balance the deferral budget. OPEC members will meet in Vienna on Thursday to discuss a further extension of the output cut agreement from just the first half of this year towards the first quarter of 2018. The main focus will on whether OPEC extends the period of their pledge to cut production by six or nine months. Kuwait’s oil minister said yesterday that there is no unanimous agreement among OPEC producers for a nine-month extension.

 

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Key option levels for Wednesday, May 24th

24/05/2017

 

If you have any questions or requests fill out the feedback form.

 

USD/JPY

 

USDJPY(120).png

 

 

Main trend Short-term period Medium-term period

Bullish Neutral

Changes in the open interest + 381 ? + 95 ?

Closest resistance levels 111.96; 112.27; 112.85; 113.29

Closest support levels 111.48; 111.15; 110.86; 110.50

Trading recommendations

Baseline scenario Long USD/JPY above 111.96, with target points at 112.27 and 112.85

Alternative scenario Moving below 111.48 can be considered as a signal to Sell the pair, with target at 111.15 and 110.86

 

 

USD/CAD

 

USDCAD(153).png

 

 

Main trend Short-term period Medium-term period

Bullish Neutral

Changes in the open interest + 339 ? - 1 010 ?

Closest resistance levels 1.3541; 1.3565; 1.3604; 1.3659

Closest support levels 1.3515(08?); 1.3486; 1.3463; 1.3426

Trading recommendations

Baseline scenario Long USD/CAD above 1.3541, with the target points at 1.3565 and 1.3604

Alternative scenario Moving below 1.3515 can be considered as a signal to Sell the pair, with target at 1.3486 and 1.3463

 

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EUR/USD: EURO CAUGHT THE BAT'S TAIL

06:20 24.05.2017

 

Recommendation: BUY 1,108 SL 1,1025 TP1 1,121 TP2 1,13. 

On the EUR/USD daily chart,  the target 88.6% of the "Bat" pattern was fulfilled. As a result, the risks of correction towards 1.113 (61.8% of the last downward medium-term wave) and 1.108 (the upper border of the previous upward trading channel) increased. The trend is still bullish, so rollbacks can be used for opening long positions.

 

Screenshot_2017_05_24_07_00_48.png

 

On the EUR/USD hourly chart, there is a break of the lower border of the upward trading channel. A successful test of the support at 1.1165 will lead to the activation of the Shark pattern with a target of 1.108.

 

Screenshot_2017_05_24_07_01_03.png

 

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USD/CHF: BEARS SAW A DRAGON

06:22 24.05.2017

 

Recommendation: BUY 0,9765 SL 0,971 TP1 0,985 TP2 0,9895. 

 

On the USD/CHF daily chart, quotes reached the lower border of the downward trading channel and rebounded from support located at 0.9715 (78.6% of the last upward wave). These factors increase the risks of correction towards the medium-term downtrend (towards 0.985).

 

Screenshot_2017_05_24_07_00_18.png

 

On the USD/CHF hourly chart, there is a formation of the Dragon reversal pattern. A break of the resistance at 0.9765 can lead to the continuation of the rally and the formation of the  Dragon's head. The Bat pattern that lies in the basis of the current reversal helps us to identify the current the interim target at 0.9815.

 

Screenshot_2017_05_24_07_00_34.png

 

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EUR/USD: "DOUBLE TOP" PUSHED PRICE LOWER

06:57 24.05.2017

 

1495608999-9311aea8dfadc5990e42e4d071325

 

We've got a "Double Top" pattern, so the price is consolidating. So, the market is likely going to decline towards the nearest support at 1.1139 - 1.1103. If a pullback from this area happens, we could have another bullish price movement towards the next resistance at 1.1287 - 1.1307.

 

1495608999-a9d18f28ceb6b25699e7f43712636

 

The last "Double Top" pushed the price lower, so bears meet with support at 1.1171. Also, there's a "Flag" pattern, so the pair is likely going to get support on the 89 Moving Average. At the same time, if we see a pullback from this line, bulls will have an opportunity to reach the closest resistance at 1.1249 - 1.1267.

 

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GBP/USD: TWO "THORN" PATTERNS

07:00 24.05.2017

 

1495608999-bee2e14a7e48d27ca3a322c67bb3a

 

The price is consolidating along the 34 Moving Average. It's likely that the market is going to achieve the 55 Moving Average in the short term. If a pullback from this line happens, there'll be an option to have an upward price movement in the direction of the next resistance at 1.3057 - 1.3090.

 

1495608998-10632b842ae214def0aef5f290a24

 

We've got two "Thorn" patterns, so the price is consolidating. The 89 Moving Average is acting as support, but bears are likely going to test support at 1.2945 - 1.2913 in the coming hours. Nevertheless, if we have a pullback from this area, bulls will probably try to achieve resistance at 1.2988 - 1.3023

 

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EUR/USD: BEARISH IMPULSE ARRIVED

09:17 24.05.2017

 

1495617363-31cb5b0cef2bc81747539bbe657c9

 

We've got a pullback from 8/8 MM Level, so a double zigzag in wave [y] of 2 may have been formed. Therefore, we could have bearish wave (i) in the short term. In this case, we should keep an eye on 6/8 MM Level as an intraday target.

 

1495617363-b794e5aa0e49bb2561593d11236d7

 

There's a downward impulse in wave ii, so bulls are likely going to deliver a local correction. However, if we see a pullback from 8/8 MM level, there'll be an opportunity to have another bearish impulse in wave iii of (i).

 

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EUR/USD: BEARISH PATTERNS

13:19 24.05.2017

 

1495631889-2e04436a515c0835c05aba69ac4e7

 

We've got bearish patterns such a "Tower" and a "High Wave", which both have confirmation. Therefore, the pair is likely going to test the 34 Moving Average in the short term.

 

1495631889-38adaa7931031e7b2162926ff7b02

 

There's a "High Wave" pattern, which has formed on the 34 Moving Average. Considering confirmation of this pattern, we could have a local correction towards the nearest resistance, which could be a departure point for another decline.

 

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USD/JPY: BULLISH "HAMMER"

13:23 24.05.2017

 

1495631888-512436194318e6be10f9663357f74

 

We've got a bullish "Hammer", which has been confirmed. Also, there's a "Doji" on the 144 Moving Average, but this pattern remains unconfirmed. So, bears are likely going to test the nearest support level shortly.

 

1495631889-cbb2905dcb069a7c488f1dd5d7aba

 

We've got bearish patterns such a "High Wave" and a "Harami", so we could have a correction in the direction of the lower "Window". If a pullback from this level happens, there'll be an opportunity to have another upward price movement.

 

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EUR/USD: BULLS LOOKS STRONG

04:23 25.05.2017

 

Technical levels: support – 1.1200; resistance – 1.1250, 1.1300.

 

Trade recommendations:

 

Buy — 1.1210/00; SL — 1.1180; TP1 — 1.1250; TP2 – 1.1300.

Sell — 1.1310; SL — 1.1330; TP1 — 1.1120; TP2 – 1.1080.

Reason: expanding bullish Ichimoku Cloud with rising Senkou Span A; a golden cross of Tenkan-sen and Kijun-sen, rising Kijun-sen; the prices are under daily resistance 1.1250-1.1300.

 

1495686189-5974574d0f06c411e972e24d898d2

 

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GBP/USD: MARKET SUPPORTED BY CLOUD AGAIN

04:24 25.05.2017

 

Technical levels: support – 1.2960; resistance – 1.3070.

 

Trade recommendations:

 

Buy — 1.2980; SL — 1.2960; TP1 — 1.3070; TP2 — 1.3150.

Reason: narrow bullish Ichimoku Cloud; horizontal Senkou Span A, but rising Senkou Span B; an irregular dead cross of Tenkan-sen and Kijun-sen over the Cloud; the prices are supported by Cloud and may go higher.

 

1495686275-5838ef800660551113de2aff99712

 

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MORNING BRIEF FOR MAY 25

05:53 25.05.2017

 

The US dollar dropped against many major currencies on less hawkish FOMC meeting minutes. Overall Fed’s policymakers seemed content to hike rate at the coming meeting in June if US economic information came in about in line with their expectations. The minutes also signaled that policymakers prefer a gradual reduction in their massive balance sheet. The Committee proposed the central bank set a cap on the amount of bonds that would be allowed to run off each month, initially determining it at a low level and then raising gradually every three months. Right after the FOMC minutes the 100-year US Treasury yield declined to 2.255% from Wednesday’s high at 2.295.

 

The euro rose higher to 1.1235 despite passive comments from ECB’s members which bring into question the recent long positioning. Solid performance in EZ economic activity and risk reduction after the French presidential election might force ECB to shift their language at the upcoming meeting in June. Yesterday ECB’s policymakers released their latest Financial Stability report along with the ECB President Draghi’s speech in which he downplayed the side effects from negative rates and claimed that there is no reason to deviate further from the indications he provided in his April introductory statement. The yesterday’s recovery from the 1.167 low is lacking in momentum, and the odds for extension towards 1.3000 are still not high. Most likely, the pair will be trading sideways within 1.1160 – 1.2670 levels.

 

Aussie came temporarily unhinged on the China’s credit rating downgrade as market participants use Aussie as a proxy for China risk. Then, it managed to recoup some of its losses amid broad USD weakening. In today’s Tokyo session, the pair slipped few points. Now, the AUD/USD currency pair is trading around 0.7500 mark. As long as 0.7430 is not touched we still anticipate a move higher towards 0.7560. 

 

USD/JPY hardly moved on the session. It’s now at 111.65 and expected to trade sideways in the short-term.  Kiwi rose to 0.7050 in the course of the Asian session. A further upsurge towards key resistance at 0.7090 is not ruled out.

 

USD/CAD sunk to 1.3390 level after the Bank of Canada was more upbeat about the economy than traders had expected. Brent oil futures were trading higher at $54.45 ahead of the start of the OPEC meeting in Vienna. Most likely OPEC producers will extend their agreement into the first quarter in attempt to drain persistent global supply. As we have OPEC meeting on the agenda, the oil prices might rise higher  and send USD/CAD lower towards the support at 1.3380, or even lower towards 1.3350.

 

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NZD/USD: KIWI IS GOING UPWARDS

06:19 25.05.2017

 

Recommendations:

 

hold long positions (BUY 0,695 SL 0,6895 TP 0,708),

 

BUY 0,6995 SL 0,694 TP1 0,712 TP2 0,734.  

 

On the NZD/USD daily chart, the break of the diagonal resistance in the form of the upper border of the downward trading channel pushed the quotes higher. The bulls almost fulfilled the target 113% of the "Shark" junior pattern. Buyers are ready to set more ambitious goals and realize the senior shark Shark. Its target 88.6% can be found near the mark of 0.734.

 

Screenshot_2017_05_25_07_27_31.png

 

On the NZD/USD hourly chart, there is a continuation of the upward movement towards the target 224% in the AB = CD pattern. A test of the resistance at 0.7055 can lead to the implementation of this target.

 

Screenshot_2017_05_25_07_27_48.png

 

Recommendations:

 

hold long positions (BUY 0,695 SL 0,6895 TP 0,708),

 

BUY 0,6995 SL 0,694 TP1 0,712 TP2 0,734.  

 

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GBP/USD: POUND IS WANDERING IN THE CHANNELS

06:25 25.05.2017

 

Recommendations:

 

BUY 1,3035 SL 1,298 TP1 1,31 TP2 1,3135,

 

SELL 1,293 SL 1,2985 TP 1,278. 

 

On the GBP/USD daily chart, there is a consolidation within the upwards trend. A breakout of the diagonal support followed by activation of the "Shark" pattern can result in the development of the correction towards 1.278. The odds for expansion are not high, the quotes might exhaust their rally at around 1.31 (target 161.8% in AB = CD).

 

Screenshot_2017_05_25_07_28_04.png

 

On the GBP/USD hourly chart, there was a false breakout of the lower boundary of the triangle. Breakout of the support at 1.293 may result in a pullback. In contrast, a successful test of resistance at 1.3035 will create the prerequisites for the continuation of the rally.

 

Screenshot_2017_05_25_07_28_21.png

 

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EUR/USD: BULLS GOING TO TEST NEXT RESISTANCE

08:02 25.05.2017

 

1495699272-efd421012bed8977f8c07cc5d0b10

 

We've got a "Triple Bottom" pattern, so the price is rising. Therefore, bulls are likely going to test the next resistance at 1.1287 - 1.1307 in the short term. If a pullback from this area happens, there'll be an opportunity to have a bearish correction towards support at 1.1204 - 1.1171.

 

1495699272-c1cd64db76d649e7d0d3ea9f18384

 

The price faced resistance at 1.1249, so there's a consolidation. In this case, the market is likely going to decline towards support at 1.1211 - 1.1204. However, if we see a pullback from these levels, bulls will have a chance to achieve resistance at 1.1287 - 1.1307.

 

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GBP/USD: "TRIANGLE" PUSHING PRICE HIGHER

08:04 25.05.2017

 

1495699272-7de876e60552ac48cbf765b2162b7

 

The price is consolidating between the 34 Moving Average and resistance at 1.3057. Also, there's a triangle, so the pair is likely going to test the nearest resistance at 1.3057 - 1.3090. If a pullback from this area happens, there'll be an option to have a decline in the direction of the closest support at 1.2964 - 1.2945.

 

1495699272-351d5d3b767323aa5ac64e9dfbb44

 

We've got a "Double Bottom", so the price has reached resistance at 1.2988. Also, there's a triangle, so bears are likely going to test the 89 Moving Average soon. Meanwhile, if a pullback from this line happens, bulls will probably try to test resistance at 1.3021 - 1.3028.

 

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