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USD/JPY: "HIGH WAVE" AND "THREE METHODS"

13:20 20.06.2017

 

1497964610-97d2dc9c20f28b9864077854b8ba7

 

We've got a bearish "Harami" at the local high. Therefore, bears are likely going to test the 21 and 55 Moving Averages. If a pullback from these lines happens, there'll be an opportunity to have another upward price movement towards the upper "Window".

 

1497964611-1cc75477cb6520ed52c367efd037f

 

The last "Window" has been broken, but there're a "High Wave" and a "Three Methods" patterns, so the price is likely going to test this "Window" once again. If we see a pullback from this level, bulls will have an option to deliver a new local high.

 

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GBP/AUD FALLING INSIDE MINOR IMPULSE WAVE 1

17:44 20.06.2017

 

GBP/AUD falling inside minor impulse wave 1

Next sell target - 1.6450

GBP/AUD continues to fall inside the minor impulse wave 1, which belongs to the sharp primary impulse wave ? from the start of May. The price earlier broke through the support zone lying between the round support level 1.7000 and the 38.2% Fibonacci correction of the previous sharp intermediate impulse wave © from the middle of March – which strengthened the bearish pressure on this pair. GBP/AUD is expected to fall to the next sell target at the next support level 1.6450 (previous resistance level from February).

 

1SJrHklvP.png

 

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GBP/CAD REVERSED FROM RESISTANCE ZONE

17:46 20.06.2017

 

GBP/CAD reversed from resistance zone

Next sell target - 1.6520

GBP/CAD recently reversed down from the resistance zone lying at the intersection of the resistance level 1.7000 and the lower trendline of the daily up channel from January (acting as resistance now after it was broken recently). The downward reversal from this resistance zone accelerated the active minor C-wave of the active intermediate ABC correction (2) from the start of May. GBP/CAD is expected to fall to the next sell target at the next support level 1.6520 (low of the previous waves (a) and 2 and the target price for the completion of the active wave (2)).

 

1T6kfgQ6v.png

 

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EUR/USD: EURO GOING TO 4W-LOWS

05:33 21.06.2017

 

Technical levels: support – 1.1060; resistance – 1.1140.

 

Trade recommendations:

 

Sell — 1.1130; SL — 1.1150; TP1 — 1.1080; TP2 – 1.1060

Reason: expanding bearish Ichimoku Cloud, falling Senkou Span A; the cancelled dead cross of Tenkan-sen and Kijun-sen, but falling Kijun-sen; the prices are on the 4W-lows.

 

1498023198-5974574d0f06c411e972e24d898d2

 

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GBP/USD: POUND FORMED NEW LOCAL LOWS

05:34 21.06.2017

 

Technical levels: support – 1.2570; resistance – 1.2650.

 

Trade recommendations:

 

Buy — 1.2570; SL — 1.2550; TP1 — 1.2650; TP2 — 1.2710.

Reason: narrow bearish Ichimoku Cloud with horizontal Senkou Span A and B; the cancelled dead cross of Tenkan-sen and Kijun-sen, the lines are horizontal; the prices made the new lows for the last two months and the marker is oversold.

 

1498023270-5838ef800660551113de2aff99712

 

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MORNING BRIEF FOR JUNE 21

06:03 21.06.2017

 

These last two days passed without any key data releases, but with more UK political uncertainty (the UK government is still not formed), an extremely dovish Mark Carney overlaid with a significant downfall in oil prices.

 

The yen was the Constant Tin Soldier in the Asian session as it managed to fight the beefy USD. USD/JPY fell below 111.30 earlier today. The news about the recent North Korean missile test contributed to the JPY strengthening.

 

The British pound dropped to 1.2600 yesterday after BoE Governor Carney signaled that he is in no hurry to raise rates, putting a special emphasis on the weakness the British economy might further experience in the course of Brexit negotiations. While there are three MPC voters worrying about heightened inflation rates, Carney’s speech made market participants believe that the BoE will unlikely provide a rate hike by the end of this year. Tonight, we will continue to keep our focus on the GBP with the Queen’s speech to Parliament which is due at 11:30 GMT and the UK monthly public-sector net borrowing report.

 

The euro slumped to 1.1116 against the USD in the Asian session. The downward momentum is not as strong as USD Bulls would like it to be. A mixed set of Fed’s speeches made traders a little bit confused. Charles Evans and Robert Kaplan sounded dovish overnight. The former one said that he is getting very nervous in the light of a multi-month run of low inflation readings. Robert Kaplan said he needs more evidence that low inflation rates are temporary before enacting additional tightening measures.  Fed Chair Yellen and NY’s Bill Dudley were explicitly hawkish as they were speaking of current Fed’s monetary policy cycle.

 

We don’t expect significant moves from EUR/USD today as no significant economic releases are seen on the horizon. Perhaps, only one is worthy – the US existing home sales report which is out at 17:00 GMT+3. At the present moment, the pair is trading at 1.1130 – a little bit higher from yesterday’s low. There is ample room for further EUR weakness towards the solid support at 1.1105. A break below this level will allow us to target the lower ones – 1.1070. The immediate resistance can be found at 1.1155 but the euro will have to put a great deal of effort to break it.

 

Aussie fell to 0.7555. The outlook for AUD/USD is still neutral though. The pair will likely trade in the range of 0.7525 – 0.7630 in the short-term without any significant economic releases that could spur buying/selling of the AUD.

 

The kiwi has also lost a little ground against USD. NZD/USD fell to 0.7225 in the Asian session notwithstanding the fact that the yesterday’s Global Dairy Auction ended with almost no change in the dairy prices.

 

USD/CAD is trading much higher from the weekly opening level – at 1.3283 from 1.3212 – mainly due to falling oil prices. Brent oil futures slumped to $45.45 yesterday as investors lost their faith in OPEC’s capacity to reduce oil glut despite with unprecedented compliance with the output deal. The oil stockpiles in a number of importing country do not shrink significantly.

 

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GOLD IS SQUEEZED IN THE CHANNEL

06:27 21.06.2017

 

On the daily chart of gold, quotes approached the lower border of the upward trading channel. A successful test of the support with the subsequent breakout of the neckline of the Head and shoulders pattern located near $1,230 may result in a quotes' downfall towards $1,210 and $1,190.

 

1498026310-13949dfae3b0539d022373f0d2e52

 

On the hourly chart of gold, the Head and Shoulders pattern has worked out. There is a change in the short-term trend or a pullback within the near-term upward trend. A rollback from $1,255 and $ 1, 260 levels may result in the opening of short positions.

 

1498026342-75c168b671d4ce827fca23907d85f

 

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USD/JPY: YEN IS PLAYING WITH SHARK

06:31 21.06.2017

 

On the USD/JPY daily chart, target 88.6% of the inverted Shark pattern has been achieved. The risks of the pullback towards 23.6%, 38.2% and 50% levels within the transformation of the Shark pattern into pattern 5-0 increased. Rebounds from the support can be used for the opening of long positions.

 

1498026582-64f17c74fa875560e8d8295c6bfd9

 

On the USD/JPY hourly chart, the Bears expect to return quotes within the borders of the downward trading channel after the realization of the Shark pattern. The Bulls have other plans. They will protect the 110.6 level trying to prevent the activation of the pattern. 

 

1498026607-e6a7bebe3a62dd464dc6b4c6693d7

 

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EUR/USD: BEARISH "FLAG"

07:06 21.06.2017

 

1498028672-88c458170eb5939142b6fa99d32ca

 

The 89 Moving Average has been broken, so the price is consolidating. Therefore, the market is likely going to test the nearest support at 1.1108 - 1.1075. If a pullback from this area happens, there'll be an opportunity to have another upward price movement in the direction of the next resistance at 1.1108 - 1.1131.

 

1498028672-bf82fb4cb9d0d7a7fbc1fc3816c07

 

The price is consolidating along support at 1.1131. Also, there's a bearish "Flag", so the pair is likely going to reach the closest support at 1.1108 - 1.1075. If we have a pullback from these levels, bulls will have a green light to deliver a local correction.

 

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GBP/USD: BEARISH "PENNANT"

07:09 21.06.2017

 

1498028672-1562e35dacb9353dfbda52285fa43

 

The last "Rising Wedge" has been broken. In this case, the pair is likely going to achieve the nearest support at 1.2581 - 1.2514. If a pullback from this area happens, there'll be an opportunity to have an upward correction towards the closest resistance at 1.2581 - 1.2634.

 

1498028672-7519a3061079621beb3e2ec69e3a7

 

Bears faced support at 1.2634. Also, there's a bearish "Pennant", so the market is likely going to reach the next support at 1.2581 - 1.2514. If we see a pullback from these levels, bulls will probably try to achieve resistance at 1.2581.

 

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OIL MARKET OVERVIEW

08:20 21.06.2017

 

Brent oil futures have extended their decline below $46 per barrel – a nine-month low as rising supply offsets efforts by OPEC and other major oil producing countries to drain a glut.

 

Recovering production from Libya and Nigeria which are exempt from the output cut deal due to losses caused by their domestic unrests – adds to oil supplies and make OPEC delegates to question whether their efforts are enough for oil glut reduction.

 

Growing production from the US raises some additional concerns over OPEC’s ability to reduce the oil output. Baker Hughes Inc. reported last week that American drillers have added 6 rigs to the previous count of 741. The number of rigs was rising in last 22 weeks. It is the longest run in 30 years.

 

1498033205-c5067fe0f77bd17b2371f38729c63

 

The American Petroleum Institute published an updated data on the US crude inventories yesterday. According to the API estimates, the US stockpiles dropped by 2.72 million barrels in the past week. The drag factor is that gasoline supplies continued to rise as American refineries increased their production capacities. In today’s spotlight will be the official data on the US stockpiles. If it confirms the data from private source released yesterday, the oil prices might get some modest support.

 

In the long-term, many analysts predict a further decline in oil prices. The Bank of Russian in its latest monetary policy reports presented an extremely sobering outlook on oil. The bank’s officials believe that with an economic slowdown in China and general ebbing demand for energy, the oil prices could slump to $25 per barrel by mid-2018.

 

Some other thinktanks believe that countries’ efforts to comply with Paris climate accord may become an additional headwind for oil crude futures. Such oil giants as Exxon Mobil and Royal Dutch Shell risk to lose significant parts of their revenues, once the international climate targets are met. More than $2 trillion of planned investments in the oil and gas fields by 2025 may become redundant if governments increase their efforts to lower carbon emissions and limit global warming to 2°C (the information is retrieved from the Carbon Tracker thinktank and a group of institutional investors). The money spent on the extension of Kashagan (dubbed as “cash all gone”) in Kazakhstan as well as on the Bonga Southwest and Bonga North in Nigeria will unlikely bring expected revenue in case of the realization of the 2-degree scenario.  

 

In the following article, we gave just a short sketch of the oil fundamentals. Most of them are headwinds for oil prices. In the short term, however, the oil prices may partially recover their losses (if incoming economic data is positive). Extreme spikes and a clear return to the levels above $50 are unlikely though. Increased compliance with the OPEC deal should offer only modest support to oil prices.

 

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PREDICTING BITCOIN’S FUTURE VALUE. WHAT CAUSES ITS UPS AND DOWNS?

11:25 21.06.2017

 

In recent years, bitcoin has become an all-time favorite asset of many traders due to its fast appreciation. 2017 is truly fruitful for BTC. Simple because since the beginning of this year it spiked by nearly 200%, outpaced the yellow metal and achieved its all-time high of $3000. What causes such an unprecedented rally? It is bitcoin’s exceptional characteristics. Its main distinction from fiat currencies is the fact that no government controls it. While there is no limit to a number of banknotes the central political entity can get out of money printing press, bitcoins are very limited in number. There are only 21 million of them in circulation and this number cannot be increased. Many believe that the limited quantity of bitcoins increases their value in the long run. So, don’t be surprised if Bitcoin rebounds to even higher peaks.

 

A major drawback of the bitcoin is its extreme volatility. Bitcoin is moving upwards with numerous corrections – multiple dips that can easily hit traders’ pockets. There are three major factors that may distort the BTC’s way to the upside:

 

Government regulations. Although Bitcoin is a decentralized currency; it still can be influenced by government regulation. For example, in early February, Chinese authorities seeking to relieve downward pressure on the yuan and stop the depletion of the country’s exchange reserves, halted bitcoin’s withdrawals. Investors could only buy or sell bitcoins on Chines exchange but were not allowed to transfer them or download/remove them. The BTC was hurt significantly. The decision to resume withdrawals came in May and sent the BTC to an all-time high.  

The news headlines. Sometimes, the price of Bitcoin moves in par with the major world news and some other Bitcoin-related news (cyber-attacks, security breaches).

Investors at small funds. Various speculators have a significant effect on the bitcoin’s fluctuations. A great share of bitcoin’s $6.4 billion market is owned by individual investors in such institutions like hedge funds.

The recent big drop was spotted on June 15, 2017. Bitcoin slumped to $2250 from $2570 in a single day for no fundamental reason. Then, the digital currency managed to recover to $2640 in just a few days. Such swing is not new for Bitcoin. It is already an established pattern: after the significant downfall, the BTC rebound to the even higher levels. Those who decide trading BTC should make a note of such extreme fluctuations in BTC/USD and remember about bitcoin’s characteristics we specified in this article.  

 

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EUR/USD: BULLISH "ENGULFING"

11:54 21.06.2017

 

1498045894-1e68c179271fcb0eea0634df4031f

 

The price got support by the lower "Window", so we've got a bullish "Harami" pattern, which has been confirmed enough. Therefore, the market is likely going to test the 55 Moving Average line, which could be a departure point for another decline.

 

1498045894-c294cbba461dc615feb44e40ec72a

 

We've got a bullish "Engulfing", which hasn't been confirmed yet. So, the price is likely going to continue moving up until any bearish pattern arrives.

 

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USD/JPY: "TWEEZERS" PUSHING PRICE HIGHER

11:57 21.06.2017

 

1498045894-7f0cf3ab38627636df9469ae8ff63

 

There's a bullish "Tweezers" pattern, so the market is likely going to test the nearest resistance. If a pullback from this level happens, bears will have a green light to achieve the 55 Moving Average.

 

1498045894-359deff99264857a1352bcfec99cc

 

We've got a pullback from the nearest "Window", so there's an "Engulfing" pattern. In this case, the pair is likely going to continue rising until any reversal pattern forms.

 

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EUR/USD: WAVE (I) ABOUT TO END

12:01 21.06.2017

 

1498046390-28e18e22c41f59829aeec8eeed839

 

Wave (i) is about to end, so if we see a pullback from 3/8 MM Level, there'll be time for wave (ii). Anyway, bears are likely going to deliver wave (iii) afterwards. In this case, we should keep in mind 2/8 MM Level as an intraday target.

 

1498046390-8395d4c2887e293ec72c34238b55b

 

As we can see on the one-hour chart, there's a possible wedge in wave (i). Wave iv is likely going to end soon, so if we have a pullback from 2/8 MM Level, there'll be an opportunity to have wave v of (i).

 

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CAD/CHF REVERSED FROM RESISTANCE ZONE

17:32 21.06.2017

 

CAD/CHF reversed from resistance zone

Next sell target - 0.7270

CAD/CHF recently reversed down sharply from the resistance zone lying between the resistance level 0.7380 (previous monthly high from May), upper daily Bollinger Band and the 50% Fibonacci correction of the previous sharp downward impulse from the middle of April. The downward reversal from this resistance zone created the daily Bearish Engulfing – which marked the end of the previous minor impulse wave (i). CAD/CHF is expected to fall to the next sell target at the next support level 0.7270 (previous resistance level from May).

 

2hohzlvsZ.png

 

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USD/CAD REVERSED FROM SUPPORT ZONE

17:33 21.06.2017

 

USD/CAD reversed from support zone

Next buy target - 1.3400

USD/CAD continues to rise sharply after the earlier upward reversal from the support zone lying between the support levels 1.3260 and 1.3220. This support zone was further strengthened by the lower daily Bollinger Band. The upward reversal from this support zone created the daily Japanese candlesticks reversal pattern Long-Legged Doji (which marked the end of the previous minor ABC correction 2). USD/CAD is expected to rise to the next buy target at the next resistance level 1.3400 (former strong support level from May).

 

2hmvcWEjC.png

 

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USD/CAD: BULLS ARE LAUNCHING AN ATTACK

06:47 22.06.2017

 

Recommendation

 

SELL 1.3465

 

SL 1.3520

 

TP1 1.3305, TP2 1.3160.

 

On the daily chart, USD/CAD recoiled from the diagonal support in form of the lower border of the rising trend channel. Bulls counter-attacked, conquered resistance at 1.3305 and are trying to hold the pair above this level. At the same time, large shorts are located at 1.3465 and 1.3525. Unless there’s a break higher we shouldn’t expect a resumption of an uptrend.

 

1498113999-b1fd26669502fa4bb945a122d3456

 

On H1 advance towards 1.3460-1.3470 and 1.3495 (88.6% target of the “Bat” pattern) should be used for opening short positions.

 

1498114016-0312330b544999b1cd1f15dbb04e5

 

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AUD/USD RETURNED HOME

06:54 22.06.2017

 

Recommendation

 

SELL 0.7520

 

SL 0.7575

 

TP1 0.7425, TP2 0.7400.

 

On the daily AUD/USD chart, bears managed to hold resistance at 0.7612 and make the quotes go beyond the uptrend channel. The break of support at 0.7525 will strengthen the risks of decline towards 0.7450 and the upper border of the previous descending channel.

 

1498114435-96c163a76f8169a9b0e7b931a6760

 

On H1, AUD/USD tested support in the 0.7570-0.7575 area with the following retest. The pair returned to the previous trading range of 0.7520-0.7570. If the pair leaves this range, it will trigger the “Shark” pattern with targets at 0.7425 (78.6%) and 0.74 (88.6%).

 

1498114455-d396924d752436eff62cee79eeb65

 

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AUD/USD: AUSSIE ENTERED INTO CLOUD

07:15 22.06.2017

 

Technical levels: support – 0.7540, 0.7500; resistance – 0.7580.

 

Trade recommendations:

 

Buy — 0.7560; SL — 0.7540; TP1 — 0.7640; TP2 — 0.7680.

Reason: bullish Ichimoku Cloud, but falling Senkou Span A; a correctional dead cross of Tenkan-sen and Kijun-sen; the prices are entered into the Cloud and may going lower to Senkou Span B.

 

1498115696-42a68b4bfa2f0515dfbaa054e9dba

 

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USD/JPY: DOLLAR BREAKING DOWN SSB’S SUPPORT

07:17 22.06.2017

 

Technical levels: support – 110.75, 110.45; resistance – 111.30.

 

Trade recommendations:

 

Sell — 111.00; SL — 111.20; TP1 — 110.45; TP2 — 109.70.

Reason: bullish Ichimoku Cloud, but falling Senkou Span A; a golden cross of Tenkan-sen and Kijun-sen with falling Kijun-sen; the prices are breaking the SSB’s support and going to Cloud’s support.

 

1498115822-3dcc4d3b0e9d38341d309e86e7227

 

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EUR/USD: BULLISH "V-BOTTOM"

07:43 22.06.2017

 

1498117264-79199cadd4a6c007f6487d2b7d69a

 

The 89 Moving Average has acted as support, so we've got a bullish "V-Bottom". Therefore, the market is likely going to reach the 34 MA in the short term. If a pullback from this line happens, there'll be an opportunity to have a decline towards the next support at 1.1131 - 1.1108.

 

1498117264-b64083d8af10f8ce12716df50c307

 

The Moving Averages are acting as resistance. However, there isn't any bearish pattern, so the pair is likely going to continue moving up in the direction of the closest resistance at 1.1193 - 1.1204. If we see a pullback from these levels, bears will have a green light to get support at 1.1118 - 1.1108.

 

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GBP/USD: BULLS GOING TO TEST 89 MA

07:46 22.06.2017

 

1498117264-38047249fbaaa69538d4ca9ea91a4

 

There's a "Double Bottom", which pushed the price towards resistance at 1.2705. In this case, the market is likely going to reach the nearest resistance at 1.2705 - 1.2757. Meanwhile, if a pullback from this area happens, we should keep an eye on the next support at 1.2581 - 1.2514 as a bearish intraday target.

 

1498117264-f27228db6ed9509775b9f1df2a0a3

 

 

The 55 Moving Average has acted as resistance, so we've got a "V-Top" pattern on this line. However, bulls are likely going to test the 89 MA in the coming hours. If we see a pullback from this line, bears will probably try to deliver a new local low.

 

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EUR/USD: BEARISH "HARAMI"

16:00 22.06.2017

 

1498136339-de66f08d82f7267928e024b09ea9e

 

The 55 Moving Average has acted as resistance, so we've got a bearish "High Wave" on this line. Therefore, the market is likely going to test the nearest support in the short term.

 

1498136339-b867489244f9b5efb2e25e67eb218

 

We've got a bearish "Harami", which has been confirmed enough. In this case, the pair is likely going to continue moving down in the direction of the last low.

 

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USD/JPY: PULLBACK FROM THE LOWER "WINDOW"

16:04 22.06.2017

 

1498136339-ad7add53ad83759d39bfdfa7599bb

 

We've got a "Tweezers" and a "Hammer", which both have been confirmed enough. So, the market is likely going to test the 144 Moving Average, which could be a departure point for another upward price movement.

 

1498136339-83d8834da835154716ec9a247734a

 

There's a pullback from the lower "Window", so we've got a "Tweezers" on this level. In this case, the market is likely going to rise in the short term until any bearish pattern forms.

 

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