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EUR/USD: DEVELOPING "FLAG" PATTERN

07:29 16.06.2017

 

1497598040-62a394180960d3b193d873eb1adf8

 

Bears have broken the "Rising Wedge" and the last upward trendline. Also, there's a possible "Flag" pattern, so the market is likely going to decline towards the nearest support at 1.1108. If a pullback from this level happens, there'll be an opportunity to have an upward price movement towards the 89 Moving Average.

 

1497598040-11e1a68b0019e21eee7dab0a3f1b0

 

The pair faced support at 1.1137, so the price is consolidating. However, there's a possible developing "Flag" pattern, so bulls are likely going to test the closest resistance at 1.1165 - 1.1178. Meanwhile, if we have a pullback from this area, bears will have a green light to achieve the next support at 1.1108.

 

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GBP/USD: CONSOLIDATION ALONG THE MA

07:37 16.06.2017

 

1497598040-8f92a92caea3e0f22719ef61c6e19

 

There's a developing "Rising Wedge", so the price faced resistance on the 34 Moving Average. In this case, the pair is likely going to decline towards support at 1.2738 - 1.2705. At the same time, if we see a pullback from these levels, there'll be an open door for another upward price movement towards resistance at 1.2768 - 1.2793.

 

1497598041-f10ec5ca60d13f41a6d34bd554a73

 

The price is consolidating along the Moving Averages. It seems like bulls are likely going to test the 89 Moving Average. If we see a pullback from this line, bears will probably try to achieve the next support at 1.2738 - 1.2705.

 

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GBP/USD: OUTLOOK FOR JUNE 19 -23

08:42 16.06.2017

 

The British pound gained as more members of the Bank of England monetary policy committee voted for the rate increase. The BOE decided to maintain its monetary policy settings but at 5-3 vote. Three dissenters advocating rate hike became increasingly worried about the inflation that could easily reach 3% by the fall and thereby flatten British consumers’ wallets. Others seemed to be more concerned with hardships the UK may experience during the Brexit. Sterling rose to 1.2795 on the announcement and managed to retain its strength in subsequent sessions. In the US, the Fed raised its interest rate on Wednesday. But this didn’t help the USD to climb higher, as rate increase was overshadowed by extremely soft consumer prices and weaker retail sales released ahead of the FOMC meeting.

 

Next week, the quotes will likely be led by political goings-on as the economic calendar for GBP/USD is very light.  Brexit negotiations will start the week, as main negotiators agreed to launch them on Monday, June 19. Then, we will hear the speeches of several Fed’s officials that are set to uncover their further monetary policy projections. Datawise, pay attention to the UK public sector net borrowing report and the US jobless claims coming on Wednesday and Thursday respectively. The clamor surrounding the investigations into Russian interference in the 2016 US presidential elections will continue to weigh on the USD.

 

GBP/USD rose to 1.2775 in the course of the past week. While downside momentum is still intact, the quotes have scope for a further extension to at least 1.2820. The solid resistance at 1.2835 (50-day MA) may prevent quotes from rising higher. The break of 1.2625 will be a good indication that we have moved into bearish phase. The next support from there can be found at 1.2560 (200-day MA).

 

1497602410-19dda06215037e098a5fb4cc55818

 

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EUR/USD: "TOWER" AND "HIGH WAVE"

12:01 16.06.2017

 

1497614379-bec79d83bb3b07dd60d97892fb634

 

We've got a "Tower" and a "High Wave", but both patterns haven't been confirmed yet. So, the price is likely going to test the nearest resistance. If a pullback from this level happens, there'll be an opportunity to have another decline towards the closest "Window".

 

1497614379-db65c4f8bf034e3ade8d034570c8f

 

There's a "High Wave", which has been confirmed enough. Also, we've got an unconfirmed "Shooting Star". In this case, we could have a local bearish correction, but bulls are likely going to test the Moving Averages afterwards.

 

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USD/JPY: "THREE METHODS" PATTERN

12:05 16.06.2017

 

1497614379-40fcc19d1189001ba20d2a41fc624

 

We've got a bullish "Engulfing", which has been confirmed. Also, there isn't any reversal pattern so far, which means the pair is likely going to continue moving up in the short term.

 

1497614379-ec82fdd16fd11d0dd2090216858af

 

There's a "Three Methods" pattern, so bulls have broken the nearest "Window". Therefore, the market is likely going to continue moving up until any bearish pattern arrives.

 

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EUR/USD: PULLBACK FROM 1/8 MM LEVEL

15:19 16.06.2017

 

1497626311-42631b4b44cae180485873637d7d0

 

A bullish impulse in wave [c] of 2 may have been formed. Also, there's a small bearish impulse in wave (i). In this case, we're likely going to have another decline in wave (iii) in the coming hours.

 

1497626311-dbbcb58f71baf723672de3d649a91

 

We've got a pullback from 1/8 MM Level, so wave (i) may have been formed. The main target for wave (ii) is 4/8 MM Level, which could be a departure point for wave (iii).

 

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GBP/USD: BULLS ENTERED INTO CLOUD

05:35 19.06.2017

 

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: narrowing bearish Ichimoku Cloud with rising Senkou Span A; a cancelled golden cross of Tenkan-sen and Kijun-sen; the prices entered into the Cloud and the Bulls will going to the upper bound of the Cloud.

 

1497850538-5838ef800660551113de2aff99712

 

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MORNING BRIEF FOR JUNE 19

05:59 19.06.2017

 

 USD/JPY is trading a little bit higher this morning at 110.95 as we got a surprise trade deficit from Japan. The current move is a part of a consolidation phase. The pair will likely trade sideways between the wide range of 110.3 – 111.10.

 

Political turmoil in the US took another turn over the weekend. US President Donald Trump isn’t under investigation for obstruction by special counsel Robert Mueller, a member of the president’s legal team said, despite Trump’s repeated comments on Twitter that he is the target of a “witch hunt”. The NY Fed W. Dudley is due to speak later today. He might provide insight into whether the Fed is still on the track of raising its rate. Some analysts believe that he should sound very dovish and this should help the USD not to lose its ground.

 

The British pound is trading near 1.2770 in the light of a deliberate act of Islamophobia performed. In Monday’s morning, a van ploughed into worshippers leaving a London mosque killing at least one person and injuring some others. The Brexit negotiations are about to start at 11 am in Brussels with UK PM Theresa May’s government already on the backfoot. Without solid support for her earlier hard Brexit policies, she will have to soften them. It is not a one-day talk. So, any comments about the talks’ progress shouldn’t produce significant moves.

 

At the present moment, GBP/USD is trading at relatively muted manner. The prospects for further weakness has diminished but the slide towards 1.2730 is still possible. On the upside, there is a room for extension towards 1.2800/1.2830 levels.

 

EUR/USD slipped a few points and reached 1.1195. From here, the pair will likely trade sideways within the wide range of 1.1140 – 1.1265. President Emmanuel Macron won a solid majority in the second round of France’s parliamentary election held on Sunday, sweeping aside traditional parties and gaining support for his pro-business reforms.

 

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The Australian dollar rose higher on Monday after the country’s central bank governor Philip Lowe said the country may achieve stronger growth in upcoming months. AUD/USD is trading against the level of 0.7615. The bullish phase is still intact. There is scope for further upsurge towards the resistances at 0.7670/0.7675.

 

USD/CAD ticked higher in the Asian session. The pair almost reached the level of 1.3220. In commodities, Brent futures dropped to $47.20 on concerns about a supply glut amid faltering demand.

 

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EUR/USD: ?URO TESTED THE BORDERS OF CONSOLIDATION RANGE

06:25 19.06.2017

 

Recommendation: SELL 1,117 SL 1,1225 TP1 1,11 TP2 1,1025.  

 

On the EUR/USD daily chart, neither bulls nor bears managed to force the quotes out of the consolidation range 1.117-1.129. The retest of its upper or lower borders might be successful. If the resistance at 1.119 is broken, there will be a continuation of the rally towards 1.1345. In contrast, a successful test of the support at 1.117 will likely result in a drop towards 1.111 and below.

 

 

 

On the EUR/USD hourly chart, the Expanding wedge pattern was formed. The growth of quotes towards 38.2%, 50% and 61.8% levels of the wave 4-5, followed by their return to 23.8%, 38.2%, and 50% levels can be used for opening positions for sale. 

 

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USD/CHF: FRANC PLAYS WITH THE PATTERNS

06:28 19.06.2017

Recommendation: BUY 0,977 SL 0,9715 TP1 0,993 TP2 1,005.

 

On the USD/CHF daily chart, the realization of the inverted Shark pattern continues. The growth of quotes above high (0.9765) of the internal bar may lead to the continuation of the rally. In contrast, a breakout of the support located at the low of the internal pattern (0.9725) may lead to the return of the quotes towards lower border of the downward trading channel. 

 

 

 

On the USD/CHF hourly chart, a target 78.6% of the Gartley pattern has been hit. Then, there was a rollback. If the high at 0.977 is updated, the Dragon pattern will continue its formation. On the upside, there is a target 161.8% of the Crab pattern, 

 

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EUR/USD: BEARS GOING TO TEST NEAREST SUPPORT

08:56 19.06.2017

 

1497862478-5de033695bf0a11a3c3324f44c90d

 

We've got a "Double Bottom", so the price tested resistance at 1.1204. Therefore, bears are likely going to test the nearest support at 1.1131 - 1.1108 in the short term. If a pullback from this area happens, there'll be an opportunity to have an upward price movement towards the next resistance at 1.1165.

 

1497862478-5a8b345b5fc0a506c312ca5cb6a79

 

There's a "Triple Top", which has been confirmed. In this case, the market is likely going to achieve the closest support at 1.1137 - 1.1131 during the day. If we have a pullback from these levels, bulls will have an option to reach resistance at 1.1165 - 1.1178.

 

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GBP/USD: RESISTANCE WAITING FOR BULLS

08:59 19.06.2017

 

1497862478-d9b34d3110e9c3e22c03241d14d54

 

The price is consolidating under the 34 Moving Average, so there's a possible developing "Rising Wedge" pattern. Under this circumstances, bears are likely going to test the nearest support at 1.2738 - 1.2705. If a pullback from this area happens, there'll be an opportunity to have a bullish price movement in the direction of the next resistance at 1.2768 - 1.2793.

 

1497862478-b14354f520dc8ca9f9ea756e73576

 

There's a consolidation, which is taking place along the Moving Averages, so bulls are likely going to achieve the closest resistance at 1.2804 - 1.2817 in the coming hours. However, if we have a pullback from this area, the pair will probably try to catch support at 1.2738 - 1.2705.

 

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EUR/USD: EURO RETURNED AGAIN TO SSA

05:34 19.06.2017

 

Technical levels: support – 1.1160; resistance – 1.1210.

 

Trade recommendations:

 

Buy — 1.1220; SL — 1.1200; TP1 — 1.1300; TP2 – 1.1340.

Sell — 1.1180; SL — 1.1200; TP1 — 1.1080; TP2 – 1.1060

Reason: bearish Ichimoku Cloud, falling Senkou Span A; a dead cross of Tenkan-sen and Kijun-sen; the prices are returned to upper bounds of the Cloud after testing the support of Senkou Span B.

 

1497850427-5974574d0f06c411e972e24d898d2

 

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EUR/USD: "TOWER" AND "HIGH WAVE" PATTERNS

12:14 19.06.2017

 

1497874348-22cdc7fab339e560d7ef6df812dff

 

The last "Tower" and "High Wave" patterns led to the current upward price movement. It seems like the market is likely going to rise even higher in the short term. If any bearish pattern arrives afterwards, there'll be an opportunity to have a decline towards the nearest support.

 

1497874348-a17509de694b0c1371fed1f4c78c9

 

The price is consolidating along the "Window". Also, there's a bullish "Three Methods", which hasn't been confirmed yet. Therefore, the market is likely going to continue moving up during the day.

 

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USD/JPY: SUPPORT BY THE NEAREST "WINDOW"

12:16 19.06.2017

 

1497874349-8d84240c7eb443a280cf606afe1d4

 

The last bullish "Engulfing" has been confirmed strongly, but we've got a bearish "Engulfing", which has a quite weak confirmation. So, the pair is likely going to test the 21 Moving Average in the short term. If a pullback from this line happens, we could have another bullish price movement.

 

1497874348-f3b4f772cd95bfbd91d6b53eb4cff

 

There's support by the nearest "Window". At the same time, we've got a bullish "Doji", which hasn't been confirmed yet. So, the current correction is likely going to be continued towards the 89 Moving Average.

 

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EUR/USD: WAVE (III) ABOUT TO END

12:20 19.06.2017

 

1497874770-30efbfb64c5e1fc0381956bc4071a

 

Wave 2 may have been formed, cause there's a pullback from 4/8 MM Level. Also, there's a bearish impulse in wave (i), so the price is rising in wave (ii). If we've got another pullback from 4/8 MM Level, bears are likely going to deliver wave (iii) in the short term.

 

1497874770-2bb89dd8937facfa792dd505cba8e

 

The price has been rising since a pullback from 1/8 MM Level was formed. The main intraday target is 4/8 MM Level, which could be a departure point for another decline in wave (iii).

 

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AUD/USD: AUSSIE READY TO GO HIGHER

05:35 20.06.2017

 

Technical levels: support – 0.7580-0.7600; resistance – 0.7670, 7700

 

Trade recommendations:

 

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

Reason: expanding bullish Ichimoku Cloud, rising Senkou Span A; a golden cross of Tenkan-sen and Kijun-sen, rising Tenkan-sen and Kijun-sen; the prices supported by Kijun-sen and the Cloud.

 

1497936940-42a68b4bfa2f0515dfbaa054e9dba

 

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USD/JPY: DOLLAR IS OVERBOUGHT

05:37 20.06.2017
 
Technical levels: support – 111.20, 110.50; resistance – 111.90/112.00.
 
Trade recommendations:
 
Sell — 111.90; SL — 120.10; TP1 — 111.20; TP2 — 110.500.
Reason: weak bullish Ichimoku Cloud, horizontal Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen, but the lines are horizontal; a market is overbought and expected a correction movements.
 
1497937009-3dcc4d3b0e9d38341d309e86e7227
 
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MORNING BRIEF FOR JUNE 20

05:49 20.06.2017

 

Fed Dudley was a superstar of yesterday’s trading sessions. In the absence of any significant economic data overnight, the market’s focus was on Fed member Dudley who gave an upbeat assessment to the US economy and forecasted a further increase in inflation rate due to tightening of the labor market. He also noted that Fed withdraws its monetary policy accommodation very judiciously, gradually so that it wouldn’t cause a recession. Dudley’s hawkish tone allowed the USD to regain its strength that consequently reverberated across the trading desk. Federal Reserve Chicago head Charles Evans a little hampered the USD rally today after he said that he would like to see more data confirming the surging inflation rates before hiking once more time. He does support a gradual reduction of the Fed’s balance sheet. This allowed the USD not to lose its ground.

 

1497937704-5fd02ae15c9b4693dc735e53a5434

 

USD/JPY rose to 111.65. Dudley’s effect was so strong that even Russia’s threat to target US warplanes in Syria failed to ruffle any risk-averse sentiment that would support safe-haven yen. The pair swiftly moved from neutral to bullish phase. We will be waiting for a further upside towards 112.00/112.20.

 

EUR/USD ticked a little bit higher in Tokyo morning. It is trading along the 1.1155 level. The single currency needs to break below 1.1105 so as the pair moved into a bearish phase. We cannot speak of the restoration of the uptrend unless EUR moves clearly above 1.2000 and makes some additional gains.

 

The British pound drifted lower during the EU-UK negotiations held yesterday in Brussels. Dudley’s comments sent it even lower to 1.2722. At the present moment, it is trading near 1.2740 against the USD. Today’s focus will be on the BOE’s Governor Mark Carney’s speech which is due at 10:30 am (MT time). Market participants will be curious to know his comments on the last week’s unexpected 5-3 vote to remain the cash rate unchanged. With annual consumer prices spiking to 2.9%, some BOE’s officials believe that a positive trade-off between supporting job and activity vs. returning inflation back to the target no longer exists. It would be interesting to know on whose side Carney is on.

 

Aussie dropped to 0.7585 yesterday on the news that Moody decided to cut the credit rating of the big four Australian banks to AA3 from AA2. Again, Dudley’s speech increased AUD’s losses. In today’s session, AUD/USD felt better, it rose above 0.7600. From here, the upsurge towards 0.7680 will be complicated given the yesterday’s unexpected drop. So, we expect to rise at least to 0.7535 in the short-term.

 

USD/CAD didn’t change its position from yesterday. It holds still at 1.3217. There was little support from oil prices as investors saw more signs of the rising crude production in the US, Libya, and Nigeria. OPEC-led output cuts seem to be no longer effective. Brent oil futures dropped to $46.78 yesterday. In Tokyo morning, they were trading near $49.95.

 

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NZD/USD: KIWI VOTES FOR THE CORRECTION

06:11 20.06.2017

 

Recommendation: SELL 0,72 SL 0,7145 TP1 0,7085 TP2 0,701

 

On the NZD/USD daily chart, target 88.6% of the inverted  Shark pattern has been achieved. At the present moment, there is a risk of a pullback towards 38.2%, 50% and 61.8% levels of the CD wave as part of the transformation of the Shark pattern into the pattern 5-0. To restore the uptrend, the Bulls need to update the June high.

 

1497940177-5dd8ed7651319b1e57d14728d724c

 

 On the NZD/USD hourly chart, a reversal pattern 1-2-3 and a triangle were formed. A break of the diagonal support near 0.72 will create the prerequisites for the correction towards 0.7085 (target 88.6% of the Bat pattern) or lower. 

 

1497940203-fb5c81ed3a220004b71069645f112

 

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GBP/USD: POUND DREAMS OF WAVES

06:13 20.06.2017

 

Recommendations:

 

BUY 1,291 SL 1,2855 TP1 1,291 TP2 1,294,

 

SELL 1,264 SL 1,2695 TP1 1,251, TP2 1,245.

 

On the GBP/USD daily chart, there is consolidation in the trading range of 1.264 - 1.28. If quotes move beyond the upper border of the range, the Wolfe Waves pattern will be realized. In contrast, a break of the support at 1.264 should activate the AB = CD pattern with a target 200% (1.245).

 

1497940358-10fb15c77258a991b0028080a64fb

 

On the GBP/USD hourly chart, the Bears' failure to return quotes to the borders of the triangle will indicate their weakness. In contrast, a successful test of the resistance at 1.281 may result in the pullback of quotes towards 1.291 and 1.294.

 

1497940376-09dd8c2662b96ce14928333f055c5

 

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EUR/USD: BROKEN UPTREND

07:26 20.06.2017

 

1497943518-d1659a7c22a0a720e4ef868b235a5

 

The price has broken the last uptrend, but the 89 Moving Average acted as support. However, the market is likely going to continue moving down towards the next support at 1.1131 - 1.1108. If we see a pullback from this area, there'll be an opportunity to have an upward price movement in the direction of the nearest resistance at 1.1165.

 

1497943518-f8e473f9dd7a35e2f8ce00bd4b0aa

 

There's a "Double Bottom" pattern, which has been confirmed. In this case, bulls are likely going to reach the closest resistance at 1.1181 - 1.1193 during the day. At the same time, if a pullback from these levels happens, bears will have a green light to catch the nearest support at 1.1131 - 1.1108.

 

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GBP/USD: BULLS GOING TO TEST CLOSEST RESISTANCE

07:30 20.06.2017

 

1497943518-3ffbee90649a96d8fdd75862193d2

 

There's a developing "Rising Wedge". The price is testing the lower side of this pattern. So, the pair is likely going to test support at 1.2705 - 1.2678. Meanwhile, if a pullback from this area arrives, we should keep an eye on the next resistance at 1.2768 - 1.2793 as an intraday target.

 

1497943518-83df87a7caa2524f6abc11c665b53

 

The price is consolidating right under the broken "Wedge". In this case, bulls are likely going to test the closest resistance at 1.2768. If a pullback from this level happens, there'll be an opportunity to have a decline towards the next support at 1.2690 - 1.2672.

 

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EUR/USD: ANOTHER BEARISH IMPULSE

10:58 20.06.2017

 

1497956217-e639336c99cbe7d02663e2b2b658f

 

Wave 2 may have been formed like a zigzag, so there's a bearish impulse in wave (i). In this case, we're likely going to have another impulse in wave (iii) in the short term. The main intraday target is 2/8 MM Level.

 

1497956217-06395fd9395e8afd150e5eecc1ce1

 

There's a pullback from 3/8 MM Level, so we've got a downward impulse in wave i. Wave ii is about to end, which means bears are likely going to deliver an impulse in wave iii of (iii) in the coming hours.

 

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EUR/USD: "DARK CLOUD" PATTERN

13:17 20.06.2017

 

1497964611-118b9540f436e39c9d8366fd81fbe

 

The last "Dark Cloud" pattern led to the current decline. Also, the 89 Moving Average is acting as support, so the market is likely going to test the 55 MA in the short term. If a pullback from this line happens, bears will have a green light to push the price even lower.

 

1497964610-e826a522fc3d2d51544f35d8b20d2

 

The upper "Window" has acted as resistance, so we've got an "Engulfing" pattern on this level. At the same time, there's a bullish "Doji", so the pair is likely going to test the Moving Averages in the coming hours.

 

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