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USD/JPY Daily Analytics

09:29 25.01.2018

 

Recommendation:

 

BUY 109.45

 

SL 108.9

 

TP1 110 TP2 110.45

 

On the daily chart, a return of the pair inside the downtrend channel shows that bears have total control. Never the less, there may be a small pullback from 78.6% and 88.6% of the wave XA of the “Bat” pattern.

 

1516872481-3297c54597baddc0779dab87f7356

 

On H1, a pullback of USD/JPY from 200% target of AB=CD with the following formation of Anti-Turtles will signal potential correction. For a start, bulls have to push the pair above 109.45.

 

1516872500-1f50b4d918123f905c31c70a9dfda

 

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EUR/USD Daily Analytics

10:01 25.01.2018

 

1516874355-0925cd5297de99fbba068ef5f8189

 

Bulls faced with resistance at 1.2456, so the market is likely going to test the nearest support at 1.2358 - 1.2322. If a pullback from this area happens little later on, there'll be an opportunity to have an upward price movement towards the next resistance at 1.2456 - 1.2500.

 

1516874355-30cfca8ec2e0539fb04b22da1392c

 

There's a "V-Top" pattern, so the pair is likely going to achieve the closest support at 1.2358. This level could be a departure point for a bullish price movement in the direction of another resistance at 1.2456 - 1.2500.

 

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GBP/USD Daily analytics

10:06 25.01.2018

 

1516874355-9cc1dafcc302e77c39d55a6d0dc9e

 

The main trend is still bullish, but the pair faced resistance at 1.4331, so there's an opportunity to have a downward correction towards the nearest support at 1.4129 - 1.4089. If we have a pullback from this area little later on, bulls will probably try to test the next resistance at 1.4386 - 1.4433.

 

1516874355-4cc965d91d7c6060f23b97f63f5fe

 

We've got a "V-Top" pattern, which has been formed at the last local high. The main intraday target is the closest support at 1.4195 - 1.4129. However, if a pullback from these levels arrives afterwards, there'll be a moment to have another upward price movement in the direction of the nearest resistance at 1.4386 - 1.4433.

 

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EUR/USD Daily Analytics

11:16 25.01.2018

 

1516878933-2966f38dd506c4dee3f3e86785ed9

 

There're a "High Wave" and a "Harami" patterns, which have been formed at the last high. Therefore, the price is likely going to test the 21 Moving Average, which could be a departure point for another bullish price movement.

 

1516878933-89c6c57817ff0f4982df2ece01da2

 

We've got a "Three Black Crows" pattern, which has been confirmed. In this case, we should keep an eye on the 55 Moving Average as an intraday bearish target.

 

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USD/JPY Daily Analytics

11:19 25.01.2018

 

1516878933-a2ce36913b9bb3adb068515b94866

 

There's still no any reversal pattern so far, which means the price is likely going to continue declining towards the lower "Window". If any bullish pattern forms little later on, there'll be a moment to have an upward correction

 

1516878933-10fb522090cbeb9f0a95aeab112df

 

We've got a bearish "Engulfing", but this pattern hasn't been confirmed yet. So, there's an opportunity to have a local bearish correction in the coming hours. Nevertheless, bears are likely going to test the next support area afterwards.

 

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WHY THE DOLLAR FELL SO LOW?

11:29 25.01.2018

We are seeing the fall of the US dollar since the end of December 2017, but US Treasury secretaries preferred to say little about it until this Wednesday.

 

The US made the biggest fall since December 2014 when the Treasury Secretary Steven Mnuchin claimed on Wednesday that “a weaker dollar is good for us as it relates to trade”. The Secretary made his comment in Davos, Switzerland during the World Economic Forum, where a lot of people are waiting for the Donald Trump’s address

 

What did he really say? Mnuchin said that a cheaper dollar increases export demand. And he is right. Mnuchin claimed that the US wants fair economic competition and reciprocal trade. Tax cuts make the US more attractive for investments. He believes that where the dollar is in short-term reflects a very liquid market, but the long-term level will support the strength of the economy.

 

However, despite positive comments about the US policy, the market reacted to the confirmation of dollar weakness and the dollar fell losing 0.8% against the Euro.  

 

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But we cannot say that Mnuchin’s words were crucial for the USD. We should not forget that overseas economic growth and shifting perceptions of monetary policy have been causing the dollar weakness as well. So the fall was expected but maybe not at such rate.

 

Summing up the Secretary’s statement, we can suppose that the US will not act to strengthen the dollar now. However, it is important to remember that depreciation adds pressure on inflation. So the Fed will have to take it under control. But if inflation rises, the Fed will have to tighten its monetary policy and it will change the US dollar rate.

 

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GBP/USD: MAIN TARGET IS CLOSEST SUPPORT

10:06 25.01.2018

 

xvykgrryegny4bzdmi1rg.png

 

The main trend is still bullish, but the pair faced resistance at 1.4331, so there's an opportunity to have a downward correction towards the nearest support at 1.4129 - 1.4089. If we have a pullback from this area little later on, bulls will probably try to test the next resistance at 1.4386 - 1.4433.

 

xr58iditya37q3jyfbsy9.png

 

We've got a "V-Top" pattern, which has been formed at the last local high. The main intraday target is the closest support at 1.4195 - 1.4129. However, if a pullback from these levels arrives afterwards, there'll be a moment to have another upward price movement in the direction of the nearest resistance at 1.4386 - 1.4433.

 

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EUR/USD: "V-TOP" PATTERN LED TO DECLINE

10:01 25.01.2018

 

xl1dwp4bzaqfrxhq2v6ws.png

 

Bulls faced with resistance at 1.2456, so the market is likely going to test the nearest support at 1.2358 - 1.2322. If a pullback from this area happens little later on, there'll be an opportunity to have an upward price movement towards the next resistance at 1.2456 - 1.2500.

 

xfi37eddk3p3s1sz5zg5f.png

 

There's a "V-Top" pattern, so the pair is likely going to achieve the closest support at 1.2358. This level could be a departure point for a bullish price movement in the direction of another resistance at 1.2456 - 1.2500.

 

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ECB Meeting & Press Conference

 

The European Central Bank will announce its monetary policy decision at 14:45 MT time on January 25. 

 

December meeting of the regulator wasn’t eventful, even so, EUR/USD made firstly a false move to the upside and then declined by almost 100 pips. That’s why there are all reasons to expect good trading opportunities in the EUR this time as well.

 

Folow this news in the Economic Calendar https://goo.gl/pmvebR

 

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EUR/USD Daily Analytics

06:07 26.01.2018

Technical levels: support – 1.2370; resistance – 1.2460, 1.2530.

 

Trade recommendations:

 

Buy — 1.2420/30; SL — 1.2400; TP1 — 1.2460; TP2 — 1.2530

Reason: bullish Ichimoku Cloud, but horizontal Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen with rising Tenkan-sen; the prices are reached new highs and corrected to local support of Kijun-sen.

 

1516946842-5974574d0f06c411e972e24d898d2

 

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GBP/USD Daily Analytics

06:09 26.01.2018

Technical levels: support – 1.4100, 1.4140; resistance – 1.4300.

 

Trade recommendations:

 

Buy — 1.4140; SL — 1.4120; TP1 — 1.4270; TP2 — 1.4300.

Reason: bullish Ichimoku Cloud with rising Senkou Span A; a golden cross of Tenkan-sen and Kijun-sen with rising Tenkan-sen; a market returned to the support of Kijun-sen and may continue an uptrend.

 

1516946842-5838ef800660551113de2aff99712

 

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EUR/USD Daily Analytics

06:58 26.01.2018

Recommendation:

 

SELL 1.2360

 

SL 1.2415

 

TP1 1.2305 TP2 1.2200

 

On the daily chart, EUR/USD is forming “Spike and reversal with acceleration” pattern. To change the trend to the downward the euro should return to 1.19. That is unlikely. On the other hand, a pin bar near the lower border of the current uptrend increases the risks of a pullback.

 

1516949779-8afba167b3e7c15d0d5d28d0f3c7b

 

On H1, EUR/USD formed a reversal “Widening wedge”. Aggressive selling will become a priority if the euro returns to 23.6% of the wave 4-5. Conservative selling may start when the euro reaches point 5.

 

1516949796-144c086f9efd0dd7367f2818eb875

 

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EUR/GBP Daily Analytics

07:40 26.01.2018

Recommendation:

 

SELL 0.8700

 

SL 0.8755

 

TP1 0.8600 TP2 0.8450

 

On the daily chart, EUR/GBP tested the lower border of the 0.8740-0.9015 for the fourth time since September. The inability of bears to continue what they have begun will point at their weakness. On the other hand, if the pair renews January low, the odds of decline to 2% target of AB=CD will increase.

 

1516952294-bc1ce4ebdd72b71af2881b8edc2b5

 

On H1, EUR/GBP managed to lead the pair outside of the descending trade channel. To return the initiative, bears need to make the euro go below support at 0.8740.

 

1516952341-311438cdc50bb0f634d8ee27e47a0

 

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EUR/GBP: BULLS HAVE DEFENDED THE FORTRESS

07:40 26.01.2018

 

Recommendation:

 

SELL 0.8700

 

SL 0.8755

 

TP1 0.8600 TP2 0.8450

 

On the daily chart, EUR/GBP tested the lower border of the 0.8740-0.9015 for the fourth time since September. The inability of bears to continue what they have begun will point at their weakness. On the other hand, if the pair renews January low, the odds of decline to 2% target of AB=CD will increase.

 

xyed474hi53e8rqrgg4.png

 

On H1, EUR/GBP managed to lead the pair outside of the descending trade channel. To return the initiative, bears need to make the euro go below support at 0.8740.

 

xudf1qk2u6axmsqf141t.png

 

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EUR/USD Daily Analytics

11:44 26.01.2018

 

1516966993-868c558b86e18dc4a0db763f1f8c2

 

The main trend is still bullish, so we should keep an eye on the next resistance at 1.2500 - 1.2537 as an intraday target. If a pullback from this area happens little later on, there'll be an opportunity to have a decline towards the nearest support at 1.2456 - 1.2358.

 

1516966993-8853eac461d38cd349c996e92d8ca

 

There's a possible "V-Top", so the pair is likely going to test the closest support at 1.2398. This level could be a departure point for another upward price movement in the direction of the next resistance at 1.2500 - 1.2537.

 

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GBP/USD Daily Analytics

11:47 26.01.2018

 

1516966993-a52d890d621b456f1dc2e5c7b59a0

 

Bulls faced with resistance at 1.4331, so there's a "Double Top" pattern. Nevertheless, the market is likely going to achieve the next resistance at 1.4386 - 1.4433 soon. If a pullback from this area happens, we could have a bearish correction.

 

1516966993-a25b13537bf11999f515b57ba3d7f

 

The 55 Moving Average has acted as support, so the price is consolidating. In this case, we should keep an eye on the closest support at 1.4129. Meanwhile, if we have a pullback from this level, there'll be an opportunity to have a bullish price movement towards the next resistance at 1.4327 - 1.4344.

 

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EUR/USD Daily Analytics

11:50 26.01.2018

 

1516967344-87ac484ba8e276e0317dcb5cc80bf

 

There's a "Piercing Line" pattern, which has been confirmed. So, if the 21 Moving Average acts as support, there'll be an opportunity to have a new local high.

 

1516967344-22250ce495e7e8670fbdbf68ef742

 

We've got a "Harami" and a "High Wave", but both patterns haven't been confirmed yet. Therefore, the 34 MA is likely going to act as support. If so, bulls will probably try to reach the next resistance area.

 

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USD/JPY Daily Analytics

11:53 26.01.2018

 

1516967344-f25290b0771e1ecf5579114d2ceb9

 

There's a bearish "Doji" pattern at the last local high. In this case, the price is likely going to test the lower "Window" once again.

 

1516967343-0a687ac69c38b5c89f64e923e609c

 

The last "Doji" pattern has been confirmed, so the price is declining. It's likely to have a local bullish correction during the day. If a pullback from the 21 MA happens little later on, there'll be a moment to have another decline.

 

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EUR/USD Daily Analytics

06:04 29.01.2018

Technical levels: support – 1.2370; resistance – 1.2460, 1.2530.

 

Trade recommendations:

 

Buy — 1.2420/30; SL — 1.2400; TP1 — 1.2460; TP2 — 1.2530

Reason: bullish Ichimoku Cloud, with horizontal Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen, but the lines are horizontal; the prices are returned into channel Tenkan-Kijun and supported by Kijun-sen.

 

1517205844-5974574d0f06c411e972e24d898d2

 

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GBP/USD Daily Analytics

06:05 29.01.2018

Technical levels: support – 1.4130; resistance – 1.4210.

 

Trade recommendations:

 

Buy — 1.4140; SL — 1.4120; TP1 — 1.4210; TP2 — 1.4270.

Reason: bullish Ichimoku Cloud with horizontal Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen, but the lines are horizontal; a market returned into channel Tenakn-Kijun and may bounced from Kijun-sen to the positive area.

 

1517205844-5838ef800660551113de2aff99712

 

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AUD/USD Daily Analytics

07:14 29.01.2018

AUD/USD: Aussie made a halt

 

Recommendations:

 

BUY 0.812 SL 0.8065 TP 0.822

 

BUY 0.805 SL 0.795 TP1 0.815 TP2 0.822

 

SELL 0.8005 SL 0.806 TP 0.79

 

On the daily chart, AUD/USD “bulls” attempted to activate pattern AB=CD with a target at 127,2%, that failed. If Aussie comes back to the support level at $0,805, there will be risks of a pullback in the direction of $0,799 and $0,79.

 

1517209957-1db64c049cc9775b27418fd0e6b08

 

On the hour chart, if AUD/USD falls below the support line in 0.8005, it will activate a pattern “Widening wedge”. On the other side, a hit of the support level at 0.8120 will be a sign the bullish trend’s resumption.

 

1517209979-ef00342837a633bda01cab6a3fe3e

 

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