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EUR/USD: YESTERDAY'S "WINDOW" GOING TO ACT AS SUPPORT

11:23 13.06.2017

 

1497352698-2fbf2cb417928d96f574583bdcbee

 

There's a developing consolidation, but we've got a confirmed "Inverted Hammer" on the 55 Moving Average. So, the market is likely going to test the nearest resistance in the short term. If we see a pullback from this level, the 55 MA could be tested once again.

 

1497352698-058bec7899f7e22403218022af3de

 

We've got a bearish "Harami" at the local high, but yesterday's "Window" is likely going to act as support. If so, we could have a new high soon. However, if a pullback from the nearest resistance happens afterwards, there'll be an opportunity to have just another decline.

 

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USD/JPY: BULLISH "HARAMI"

11:25 13.06.2017

 

1497352698-d5e32bf2f95e224b8438da9830a75

 

There's a bullish "Harami", which has been confirmed enough. In this case, the market is likely going to test the closest resistance, which could be a departure point for a decline in the direction of the lower "Window".

 

1497352698-fa85172d1ade70db0fec7dfdc585d

 

We've got a "Harami" on the 89 Moving Average, but this pattern hasn't been confirmed yet. So, the pair is likely going to test the last "Three Methods" pattern's level.

 

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USD/CAD BROKE PIVOTAL SUPPORT LEVEL 1.3260

17:40 13.06.2017

 

USD/CAD broke pivotal support level 1.3260

Next sell target - 1.3150

USD/CAD has been falling sharply in the last few trading sessions inside the C-wave of the minor ABC correction 2 from the start of May. The price earlier broke the support trendline of the daily up channel from February – which accelerated the active C-wave. The price today broke below the pivotal support level 1.3260 (which has been reversing the price from March). USD/CAD is expected to fall to the next sell target at the next support level 1.3150.

 

1Oo6ZHN89.png

 

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EUR/CAD APPROACHED SUPPORT LEVEL 1.4830

17:41 13.06.2017

 

EUR/CAD approached support level 1.4830

Next sell target - 1.4600

EUR/CAD continues to fall sharply after the recent breakout of the round support level 1.5000 (which reversed earlier wave 4 and which was set as the sell target in our previous forecast for this currency pair). The breakout of the support level 1.5000 strengthened the bearish pressure on this currency pair. The price is currently trading close to the support level 1.4830 (low of wave 2 from May). If the pair breaks below the support level 1.4830 –GBP/USD can then be expected to fall to the next sell target at the next support level 1.4600 (previous monthly high from March).

 

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GBP/USD: DECISION TIME FOR THE POUND

07:11 14.06.2017

 

On the daily chart, GBP/USD broke down through the lower border of the rising trend channel. The return above resistance at 1.2770 will strengthen the possibility of the pound increase to 1.2900. On the other hand, decline below 1.2640 will lead the pair down to 1.2500 and 1.2400.

 

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On H1, in the case of the successful test of 1.2770 bulls can count on the realization if the inverted “Bat” pattern. Its 78.6% and 88.6% targets correspond to 1.2905 and 1.2940. On the contrary, recoil from the convergence area of 1.2755-1.2770 to the downside will return control of the pair to bears.

 

1497424231-e172bfb48bf4994c714be75e99582

 

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EUR/USD: CONSOLIDATION RIGHT ABOVE THE "WEDGE"

09:16 14.06.2017

 

1497431545-8ca05d3ea5a92dc1bfb639bcedf29

 

The price is still consolidating right above the "Wedge" pattern's lower side. So, the market is likely going to test the nearest resistance at 1.1232 - 1.1249 in the short term. If we see a pullback from this area, there'll be an opportunity to have another decline in the direction of the next support at 1.1204 - 1.1165.

 

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There's a consolidation, which is taking place between the levels 1.1234 - 1.1161. Also, the price has broken the Moving Averages, so bulls are likely going to test the closest resistance at 1.1234 - 1.1249 during the day. However, if a pullback from this area happens, bears will have a chance to reach a support area at 1.1191 - 1.1178.

 

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GBP/USD: "DOUBLE BOTTOM" CONFIRMED BY "FLAG"

09:21 14.06.2017

 

1497431545-19868a36064328ce7acc554aaa6dc

 

We've got a "Double Bottom", which has been confirmed. Bulls faced resistance at 1.2793, but the market is likely going to rise even higher, so we should keep an eye on the next resistance at 1.2830 - 1.2845 as an intraday target. At the same time, if we see a pullback from this area, there'll be an opportunity to have a decline towards the closest support at 1.2793 - 1.2768.

 

1497431545-74f89671fe125542d876b67685e3f

 

The last "Double Bottom" has been confirmed by the "Flag" pattern. So, the market is likely going to reach the next resistance at 1.2829 - 1.2845 in the coming hours. If we have a pullback from this area, bears will have a green light to test a support at 1.2793 - 1.2768.

 

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EUR/USD: "HIGH WAVE" AT THE LOCAL LOW

10:43 14.06.2017

 

1497436948-d974f7c27d6a392e03d871c57c0c5

 

The price has been consolidating since the last "Inverted Hammer" formed. However, we've got a "High Wave" at the local low. Considering confirmation of this pattern, the market is likely going to test the nearest resistance, which could be a departure point for another decline.

 

1497436948-6259c00de4e613fe8e7f1ff635c07

 

The last "Window" has been closed, so there's a confirmed "High Wave". In this case, the price is likely going to test the nearest support level, which could be a departure point for a local upward price movement.

 

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USD/JPY: "WINDOW" ACTING AS SUPPORT

10:47 14.06.2017

 

1497436948-5d5b5fe88d95fcc8a1f3aa9e391c6

 

The "Window" is acting as support, so we've got a bullish "Harami", which has been confirmed. Therefore, the market is likely going to test the closest resistance once again. If a pullback from this level happens, there'll be an opportunity to have another decline.

 

1497436947-b1dcdc05bf1877c8b7b92b0f7d688

 

The price is consolidating along the 89 Moving Average, so there's a bearish "Doji", but this pattern hasn't been confirmed yet. In this case, we could have a local decline and a new high afterwards.

 

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EUR/USD: EURO SUPPORTED BY CLOUD

05:17 15.06.2017

 

Technical levels: support – 1.1210; resistance – 1.1300.

 

Trade recommendations:

 

Buy — 1.1230; SL — 1.1210; TP1 — 1.1300; TP2 – 1.1340.

Reason: expanding bullish Ichimoku Cloud, rising Senkou Span a; a golden cross of Tenkan-sen and Kijun-sen; the prices tested a main resistance on 1.1300 and back again to the support of the Cloud.

 

1497503821-5974574d0f06c411e972e24d898d2

 

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USD/JPY: BEARS MADE A NEW LOWS

05:18 15.06.2017

 

Technical levels: support – 108.70; resistance – 109.70/90.

 

Trade recommendations:

 

Sell — 109.60; SL — 109.80; TP1 — 108.70; TP2 — 108.30.

Reason: expanding bearish Ichimoku Cloud, falling Senkou Span A; a dead cross of Tenkan-sen and Kijun-sen, but the lines are horizontal; the prices keep staying under the Cloud.

 

1497503916-3dcc4d3b0e9d38341d309e86e7227

 

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GOLD NEEDS THE CORRECTION

06:41 15.06.2017

 

Recommendations: SELL $1260 SL $1280 TP1 $1230 TP2 $1220.

 

On the daily chart of gold, the formation of a double top and the inability of the "Bulls" to test the resistance at $1,280 tell us about weakness. A successful test of the convergence area $1245-1255 will allow the Bears to develop a correction.

 

 

 

On the hourly chart of gold, there are Fakeout-shakeout and Head and shoulders patterns. A false breakout of the upper border of the consolidation channel $1248-1274 with the subsequent return of quotes to its middle area shows that Bears are ready to attack. A breakout of the neckline will give us a signal for this attack.

 

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USD/JPY: YEN WANTS TO BE SET FREE

06:50 15.06.2017

 

Recommendations: BUY 110,25 SL 109,7 TP1 111,5 TP2 113,2. 

 

On the USD/JPY daily chart, a bar with a long shadow was formed. The Bears will try to break the diagonal resistance in the form of the upper boundary of the downward trading channel and then activate the inverted "Shark" pattern. Its target 88.6% is located near 111.5.

 

 

 

On the USD/JPY hourly chart, for the activation of the Three Indians pattern, the Bulls need to test the convergence area 110,15-110,25. If they succeed, they will be able to push the quotes towards 111.6 and 113.2.

 

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EUR/USD: DEVELOPING "RISING WEDGE"

07:56 15.06.2017

 

1497513267-e617e77229d9a0300942bf47e7560

 

The price is consolidating above the lower side of the developing "Rising Wedge". So, bears are likely going to reach the nearest support at 1.1204 - 1.1165 in the short term. If we see a pullback from this area, there'll be an opportunity to have another upward price movement towards resistance at 1.1232 - 1.1249.

 

1497513267-3c6faf562dc5027f0c3af999f432d

 

We've got a "Double Top", which has been confirmed, so the price is consolidating. Also, there's a "Flag" pattern, so the market is likely going to achieve the closest support at 1.1178 - 1.1165. If a pullback from this area happens, bulls will have an option to reach the Moving Averages.

 

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GBP/USD: BEARISH "FLAG"

08:00 15.06.2017

 

1497513267-de3d63d8485411dab641e866dc01f

 

The 34 Moving Average has acted as resistance, so there's a "V-Top" pattern, which has confirmation. In this case, the pair is likely going to test the next support at 1.2705 - 1.2678. However, if a pullback from this area happens, there'll be a green light for another bullish price movement.

 

1497513267-72a8f8d02137a77ba57983eb34f1d

 

We've got a "Triple Top" pattern, which has been confirmed, so the price is consolidating. Meanwhile, there's a bearish "Flag", so the market is likely going to test the closest support at 1.2705 - 1.2672. If we have a pullback from these levels, bulls will probably try to test the 55 Moving Average.

 

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POST-FOMC NEWS BRIEF FOR JUNE 15

08:15 15.06.2017

 

The Fed’s policymakers agreed to raise their benchmark lending rate, projected additional hike in 2017 and revealed their plans on how they intend to shrink their $4.5. trillion balance sheet this year. The Fed’s decision was overshadowed by extremely soft consumer prices. Headline US CPI for May eased 0.1% (against flat expected) with core inflation also falling short of market expectations and bringing annual core CPI down to 1.7% from 1.9%. Another disappointment came after the US Retail sales release which was also lower than expected in May. Retail sales fell 0.3% against investors’ expectation for a 0.1% gain.

 

Political turmoil in Washington also weighed on the USD. The special council responsible for the investigation of Russia’s meddling in the 2016 presidential election is going to interview two US intelligence officials about whether the US President Donald Trump sought their help to get the FBI to drop their probe into Michael Flynn’s collusion with Russian entities.

 

USD/JPY popped up to 109.60 in Tokyo morning after falling sharply towards 108.80 overnight on the USD weakness. We don’t expect great swings from here in the short-term looking at the economic calendar.  The Bank of Japan will in the spotlight on Friday, as it is poised to release their rate statement which will be followed by a press conference with BoJ Governor Haruhiko Kuroda. The central bank is expected to maintain its ultra-loose monetary policy settings in order to prop up inflation and domestic demand. Japan’s economy has recently received a boost from solid global demand, but inflation rates remain well below the bank’s coveted target. The BoJ’s policymakers will unlikely tighten their policy at tomorrow’s meeting. So, traders will be focused on Kuroda’s follow-up comments, looking for some hawkish notes in his tone (pay special attention to Kuroda’s words on the reduction of bond purchases).

 

GBP/USD fell to 1.2730 in the opening hours of the Asian session. Further weakness is seen on the horizon but solid support at 1.2560, 1.2515 will likely prevent the sharp downfall. The Bank of England is set to deliver its interest rate later today at 2:00 pm MT time. Given the political landmines dotting the UK landscape (a hung parliament as a result of the snap election, preparation for Brexit negotiations with the EU), the BOE’s policymakers will likely look through the higher inflation print. The headline inflation was at 2.9% in May and core inflation slightly lower at 2.6% (well above the bank’s target – 2%). At the previous meeting, the BOE’s officials have already indicated that they are ready to tolerate higher inflation rates despite declining consumption.  In a case of release of the dovish statement indicating the BOE’s unwillingness to tighten their monetary policy, the GBP will be hurt.

 

The euro unexpectedly spiked to 1.1295 yesterday on the soft releases from the US that triggered USD weakness. In Tokyo morning, the USD recouped its earlier losses and fell to 1.1185. The undertone is still on the weak side; the quotes might slide lower to 1.1160 unless the single currency manages to reclaim the 1.1200 level.

 

Aussie was an absolute gainer today as Australian Labor force information hit market’s expectations (a big drop in jobless rate, an increase in hours worked). The bullish phase is still clearly intact despite the scale of recent Aussie’s gains. AUD/USD is now at 0.76005. There is a room for an extension to 0.7635 (yesterday’s high). But be ready to exit your long position, at around 0.7650, as further upside will be complicated.

 

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EUR/USD: CONFIRMED "SHOOTING STAR"

11:42 15.06.2017

 

1497526853-2008d23ca4e42c0abd553f1ced5ec

 

We've got a "Shooting Star", which has been confirmed. Also, there isn't any reversal pattern so far, which means all the last candles are bearish. Therefore, the 89 Moving Average is likely going to be tested once again

 

1497526853-9695517f76f1a49550abd91060dc9

 

There's a bullish "Harami", which hasn't been confirmed yet. Therefore, we could have a local correction, but bears are likely going to break the last low afterwards.

 

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USD/JPY: CONSOLIDATION ALONG THE 34 MA

11:44 15.06.2017

 

1497526853-b5d1625f866d37ea266498b1d6742

 

We've got a bullish "Engulfing", so the market is likely going to test the nearest resistance. If a pullback from this level happens, there'll be an opportunity to have another decline.

 

1497526853-311fcc0017d5203ade964a32ba018

 

The price is consolidating along the 34 Moving Average. Considering that there isn't any bearish pattern so far, the pair is likely going to continue moving up towards the 144 Moving Average.

 

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HIGHLIGHTS OF THE BANK OF ENGLAND'S MEETING

12:09 15.06.2017

 

 The Bank of England published its latest views on interest rates and monetary policy setting earlier today. Bank rate was held at 0.25%, government bond purchases at £435bn and corporate bond purchases at £10bn. No changes from its previous meeting as you might have noticed. All eyes were on the minutes and the voting.  The market participants didn’t expect the split among Monetary Policy Committee members to widen and change from its last 7-1. Three officials from 8 called for a rate increase, warning that inflation could rise more than previously thought and eventually flatten the wallets of the British consumers.

 

The unexpected shift in the MPC’s voting comes against an uncertain backdrop for the U.K., with real wages falling, consumer spending declining, Brexit negotiations knocking at the door and Prime Minister Theresa May unexpectedly losing her parliamentary majority after Thursday’s general election. The greatest division among the BOE’s policymakers on the interest rate can be explained by the UK economic fundamentals.

 

In recent weeks, the BOE’s policy had a chance to see further evidence of sharply rising prices, subdued wage growth and a weakening demand from consumers.  CPI inflation has been pushed above the bank’s 2 percent target and reached 2.9% in May. The BOE policymakers said it may surge higher above 3%. GDP growth declined markedly in the Q1 mainly due to weaker household spending.  So, the rate hike will be needed, anyways, but it will be gradual and limited.

 

The unexpected split helped GBP to regain its strength. It rose above 1.2770 following the rate announcement.

 

The BoE’s interest rate announcement is not the single event that may influence the GBP today.  Governor Mark Carney will speak at 11 pm MT time at the annual high-profile Mansion House event in London’s financial district.

 

1497528792-a826eb853c8d859f5b9d16a5c78c3

 

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EUR/USD: DEVELOPING WAVE (I)

14:31 15.06.2017

 

1497536987-3fb300ef4b78437931e943ed75426

 

The price hasn't fixed above 4/8 MM Level, so wave [c] of 2 may have been ended. Therefore, there's developing wave (i). If we have a pullback from 3/8 MM Level, bulls are likely going to deliver wave (ii).

 

1497536987-b0474efb1b2fefea8d0102c99753b

 

6/8 MM Level has acted as resistance, so there's a bearish rally, which could be developing wave (i). If this wave forms like an impulse, we're likely going to have the market even lower right after an upward correction.

 

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GBP/USD: POUND WILL TEST CLOUD AGAIN

05:00 16.06.2017

 

Technical levels: support – 1.2750, 1.2660; resistance – 1.2805, 1.2840.

 

Trade recommendations:

 

Buy — 1.2780; SL — 1.2760; TP1 — 1.2840; TP2 — 1.2900.

Sell — 1.2750; SL — 1.2770; TP1 — 1.2660; TP2 — 1.2610.

Reason: expanding bearish Ichimoku Cloud with falling Senkou Span A; a correctional golden cross of Tenkan-sen and Kijun-sen; the prices returned to Cloud again and the Bulls can try to breakout its resistance.

 

1497589203-5838ef800660551113de2aff99712

 

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AUD/USD: AUSSIE SUPPORTED BY TENKAN AND KIJUN

05:02 16.06.2017

 

Technical levels: support – 0.7580; resistance – 0.7620, 7670

 

Trade recommendations:

 

Buy — 0.7600; SL — 0.7580; TP1 — 0.7670; TP2 — 0.7700.

Reason: expanding bullish Ichimoku Cloud, rising Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen, rising Tenkan-sen; the prices made the new highs and corrected to support of Tenkan-sen and Kijun-sen.

 

1497589313-42a68b4bfa2f0515dfbaa054e9dba

 

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MORNING BRIEF FOR JUNE 16

05:57 16.06.2017

 

The Bank of Japan was in the spotlight in the Asian session. Traders were waiting for its rate decision. The BOJ left its monetary policy settings unchanged having pledged to continue pouring stimulus into the economy and striving to reach their 2% inflation target. USD/JPY moved above 111 on the announcement. At the present moment, the pair is trading along the 111.20 level. There is scope for a further USD strength to 111.70. A break above this level would be a good indication of the beginning of the bullish phase.

 

The pound gained some pips overnight after the BOE’s monetary policy committee was more divided than expected with only 5 votes for staying on hold against 3 voting to raise. The BOE’s officials are on the horns of the dilemma: whether to take actions to return inflation back to target or support jobs, overall economic activity during the Brexit. The BOE’s rate announcement showed us that this tradeoff is lessening given growth in employment to date and rising inflation that has recently overshot bank’s target. GBP/USD is trading near 1.2770. The downward momentum is waning, but further dips are not ruled out.

 

The Aussie added some points yesterday due to better-than-expected labor data. AUD/USD is near 0.7577. The bullish phase is still intact.  Those who are long may target higher level and plan exiting their positions at around 0.7670/0.7675 levels.

 

The Kiwi was hit by a weaker than expected quarterly GDP figures. NZD/USD fell sharply overnight from 0.7268 to 0.7185. Now, it is trading slightly above 0.7200.  

 

EUR/USD dropped to 1.1140 on a stronger USD. Thursday’s economic data flow gave greenback some reasons for cheer. It seems that the dollar has started getting over its shock from the core CPI release and lower retail sales released on Wednesday before the Fed’s rate announcement. The immediate pressure is on the downside. So, the single currency may slide towards 1.1110 against the USD. It will stay under pressure until bulls manage to reclaim the level of 1.1210.

 

After the BOJ’s meeting, there is almost nothing on the radar.  In Europe, there will be the final read of May CPI with headline expected to be 1.4% and core inflation figures at 0.9%. In the US, the Fed Kaplan is scheduled to speak at 7:45 pm. In addition, we will get housing starts and the Uni Michigan Consumer Sentiment for June which should deviate greatly from their previous prints.

 

USD/CAD is trading a bit lower as oil prices have started their recovery. Brent is now trading at $46.98 which is higher than its previous low at $46.68 reached on Wednesday after US data showed a build in gasoline stockpiles.

 

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USD/CAD: LOONIES BREAKS THE TREND

06:24 16.06.2017

 

Recommendation: SELL 1,3185  SL 1,324 TP1 1,3 TP2 1,2875. 

 

On the USD/CAD daily chart, the realization of the Wolfe Waves pattern continues. Its target is located near the 1.3 mark. The Bears' attempt to push quotes beyond the long-term upward trading channel has failed. The repeated attempt may lead to the breakout of the bullish trend and implementation of the target 113% of the Shark pattern (1.2875).

 

 

 

On the USD/CAD hourly chart, the Bulls built bastions near 1.3225 and 1.3185. A successful test of these levels will probably result in a further drop of quotes. 

 

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AUD/USD: THE BULLS WILL BE GIVEN A THIRD ATTEMPT

06:25 16.06.2017

 

Recommendation: BUY 0,7625 SL 0,757 TP1 0,771 TP2 0,78. 

 

On the AUD/USD daily chart, the implementation of the inverted Bat pattern continues. Its target 88.6% is located near 0.771. Bulls twice tried to test the resistance at 0.7612 but failed to do so. As a result, an internal bar pattern was formed. A successful test of its high may lead to the restoration of the uptrend. 

 

On the AUD/USD hourly chart, there was a realization of the Dragon pattern. If quotes move beyond the triangle, the risks for the realization of the inverted Crab pattern with target 0.78 will increase.

 

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