2017-09-05
Wave summary:
Support at 129.64 should be able to protect the downside for the next rally higher towards 134.80 and the long-term target for wave D at 137.36. An unexpected break below support at 129.64, will shift the top of wave i forward to the 131.71 higher and the ongoing decline from this high as a wave ii correction with an ideal target set at 129.12 before turning higher again.
R3: 131.71
R2: 131.38
R1: 130.69
Pivot: 130.00
S1: 129.64
S2: 129.12
S3: 128.50
Trading recommendation:
We are long EUR from 128.50 with stop placed at 129.55. If you are not long EUR yet, the buy a break above 131.38 and use the same stop at 129.55.
Elliott wave analysis of EUR/NZD for September 5, 2017
2017-09-05
Wave summary:
We continue to look for a deeper corrective decline in red wave iv, ideally closer to 1.6171 before turning higher again in red wave v. That said, we have to remember that we currently are in the wave iii/ of iii, which normally is the strongest part of the trend, so we should be aware of the possibility that the correction will be sub-normal and move directly higher through resistance at 1.6672 towards 1.6969.
R3: 1.6710
R2: 1.6632
R1: 1.6610
Pivot: 1.6600
S1: 1.6540
S2: 1.6435
S3: 1.6348
Trading recommendation:
We are looking for a EUR-buying opportunity in the 1.6171 - 1.6348 area or upon a direct break above 1.6672.
Technical analysis of USD/CHF for September 05, 2017
2017-09-05
Overview:
The USD/CHF pair bullish trend from the support levels of 0.9558. Currently, the price is in a bullish channel and the price is seen at the 0.9558 level. The USD/CHF pair probably continues to move upwards from the level of 0.9558. Yesterday, the pair rose from the level of 0.9558 to a top around 0.9670. Today, the first resistance level is seen at 0.9693 followed by 0.9725, while daily support 1 is seen at 0.9558 (38.2% Fibonacci retracement). According to the previous events, the USD/CHF pair is still moving between the levels of 0.9639 and 0.9725; so we expect a range of 86 pips. Furthermore, if the trend is able to break out through the first resistance level at 0.9693. Therefore, buy above the level of 0.9558 with the first target at 0.9693 in order to test the daily resistance 1 and further to 0.9725. Also, it might be noted that the level of 0.9725 is a good place to take profit because it will form a major resistance today. On the other hand, if a breakout takes place at the support level of 0.9558, then this scenario may become invalidated.
Technical analysis of NZD/USD for September 05, 2017
2017-09-05
Overview:
The NZD/USD pair didn't make any significant movements since last week. There are no changes in our technical outlook. It continued to move downwards from the level of 0.7202 to the bottom around 0.7142. Today, the current price is seen at the level of 0.7170. the first resistance level is seen at 0.7202 followed by 0.7239, while daily support 1 is seen at 0.7100. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.7142. So it will be good to sell at 0.7142 with the first target of 0.7100. It will also call for a downtrend in order to continue towards 0.7064 (support 2). The strong daily support is seen at the 0.7064 level, which represents a new double bottom on the H1 chart. According to the previous events, we expect the NZD/USD pair to trade between 0.7202 and 0.7064 in coming hours. The price area of 0.7202 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.7202 is not broken. On the contrary, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.7239, then a stop loss should be set at the price of 0.7280.
Fundamental Analysis of GBP/USD for September 5, 2017
2017-09-05
GBP/USD has been quite corrective recently inside the range of 1.2800 to 1.3050 area. The US holiday at the beginning of the week left the pair with less liquidity in the market resulting in minimal market pressure and correction. Today, the UK BRC Sales Monitor report was published with a rise to 1.3% from the previous value of 0.9%, but the report still could not show any directional bias in this pair. Moreover, the UK Services PMI report is going to be published today which is expected to have slight decrease to 53.5 from the previous figure of 53.8. On the other hand, FOMC Member Brainard is going to speak today about the US key interest rates and future monetary policies that is expected to reveal the neutral stance. Factory Orders report is expected to show a decrease to -3.3% from the previous value of 3.0%, IBD/TIPP Economic Optimism is expected to have a slight increase to 53.1 from the previous figure of 52.2. Later today, FOMC Member Kashkari is also going to speak about the interest rates and future monetary policies of the nation. To sum up, a batch of high impact economic reports from the UK and the US are going to be published today that is expected to bring in more liquidity and volatility in the market. A directional bias is likely to be detected in the market by the daily close. In the current scenario, USD is expected to have an upper hand over GBP and dominate it further in the coming days.
Now let us look at the technical chart. The price has been quite corrective in nature after being respected by the trend line of March 2017. As the price remains below the trend line and 1.3050-1.3120 resistance area, the bearish bias is expected to continue further with a recent target towards 1.2750-1.2800 support area in the coming days.
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