2017-09-04
Monthly Outlook
In January 2015, the EUR/USD pair moved below the major demand levels near 1.2050-1.2100 (multiple previous bottoms set in July 2012 and June 2010). Hence, a long-term bearish target was projected toward 0.9450.
In March 2015, EUR/USD bears challenged the monthly demand level around 1.0500, which had been previously reached in August 1997.
In the longer term, the level of 0.9450 remains a projected target if any monthly candlestick achieves bearish closure below the depicted monthly demand level of 1.0500.
However, the EUR/USD pair has been trapped within the depicted consolidation range (1.0500-1.1450) until the current bullish breakout was executed above 1.1450.
The current bullish breakout above 1.1450 allows a quick bullish advance towards 1.2100 where price action should be watched for evident bearish rejection and a valid SELL Entry.
Daily Outlook
In January 2017, the previous downtrend reversed when the Head and Shoulders pattern was established around 1.0500. Since then, evident bullish momentum has been expressed on the chart.
As anticipated, the ongoing bullish momentum allowed the EUR/USD pair to pursue further bullish advance towards 1.1415-1.1520 (Previous Daily Supply-Zone).
The daily supply zone failed to pause the ongoing bullish momentum. Instead, an evident bullish breakout is being witnessed on the chart.The nearest Supply level to meet the pair is located around 1.2080 (Level of previous multiple bottoms) where bearish rejection can be anticipated.
On the other hand, the price zone of 1.1415-1.1520 should be watched for a valid BUY entry if the current bearish pullback persists below 1.1800 and 1.1700.
NZD/USD Intraday technical levels and trading recommendations for September 4, 2017
2017-09-04
Daily Outlook
In February 2017, the depicted short-term downtrend was initiated around the depicted supply zone (0.7310-0.7380).
However, a recent bullish breakout above the downtrend line took place on May 22. Since then, the market has been bullish as depicted on the chart.
The price zone of 0.7150-0.7230 (Key-Zone) stood as a temporary resistance zone until a bullish breakout was expressed above 0.7230.
This resulted in a quick bullish advance towards the next supply zone around 0.7310-0.7380 which was temporarily breached to the upside.
The recent bearish pullback was executed towards the price zone of 0.7310-0.7380 (newly-established demand-zone) which failed to offer enough bullish support for the NZD/USD pair.
Re-consolidation below the price level of 0.7300 enhances the bearish side of the market. This brings the NZD/USD pair again towards 0.7230-0.7150 (Key-Zone) where recent weak bullish recovery was manifested on August 16.
On the other hand, an atypical Head and Shoulders pattern is being expressed on the depicted chart indicating a high probability of bearish reversal.
Breakdown of the neckline 0.7150 confirms the reversal pattern. Expected bearish targets are located around 0.7050, 0.6925 and eventually 0.6800.
Technical analysis of GBP/USD for September 04, 2017
2017-09-04
Overview:
The GBP/USD pair has fallen from the level of 1.3008, which coincides with the ratio of 61.8% Fibonacci retracement, to the bottom around 1.2848. But it rebounded from the spot of 1.2850 to set at the level of 1.2950 currently. The GBP/USD pair will probably keep moving downwards from the levels of 1.2928/1.3008. The first resistance level is seen at 1.2928 followed by 1.3008, while daily support 1 is found at 0.6817.
The level of 1.2848 represents a weekly pivot point for that it is acting as minor resistance. Amid the previous events, the pair is still in a downtrend. The GBP/USD pair is declining from the new resistance line of 1.2928 towards the first pivot level at 1.2848 in order to test it. Hence, we recommend selling below 1.2848 with the first target at 1.2748. If the pair succeeds to pass through the level of 1.2748. Then, the market will indicate a bearish opportunity below the level of 1.2748 in order to continue towards the next objectives of 1.2668 and 1.2588.
On the other hand, if a breakout happens at the resistance level of 1.3008, then you'd better set your stop loss at 1.3028.
Technical analysis of EUR/USD for September 04, 2017
2017-09-04
Overview:
The EUR/USD pair bullish trend from the support level of 1.1895. Currently, the price is in a bullish channel.
This is confirmed by the RSI indicator signaling that we are still in a bullish trending market.
As the price is still above the moving average (100), immediate support is seen at 1.1895.
Consequently, the first support is set at the level of 1.1895. So, the market is likely to show signs of a bullish trend around the spot of 1.1895/1.1846. In other words, buy orders are recommended above the golden ratio (1.1846) with the first target at the level of 1.1959.
We should see the pair climbing towards the first target (1.1959) to test it.
Furthermore, if the trend is able to break out through the first resistance level of 1.1959, then the trend will continue towards the next targets of 1.1988 and 1.2031. It would also be wise to consider where to place a stop loss; this should be set below the second support of 1.1810.
Trading Plan for EUR/USD and GBP/USD for September 04, 2017
2017-09-04
Technical outlook:
The EUR/USD pair had rallied through 1.1970/75 levels on Friday as expected and reversed sharply lower from there. An hourly chart has been depicted here, with proper labeling and probable wave counts. As seen here, the drop from 1.2070 through 1.1820 levels unfolded into 5 waves labelled 1 through 5 as wave (1). Furthermore, its counter trend rally unfolded into 3 waves A-B-C, which extended through 1.1975 levels (also near fibonacci 0.618 resistance) before reversing lower. Most probably waves (1) and (2) have terminated and wave (3) could be underway towards 1.1600 levels going forward. Besides please note that waves 1 and 2 of a lower degree are also produced which would unfold into 5 waves within wave (3). As an alternate, wave (2) can terminate above 1.1975 levels before turning lower. Interim resistance is seen at 1.1980 levels, while support is at 1.1820 levels respectively.
Trading plan:
Please remain short and also look to sell through 1.1980 again, stop above 1.1270, target 1.1600 and lower.
GBPUSD chart setups:
Technical outlook:
A 4H chart view has been presented here for GBP/USD with clear wave counts labeled again. Please note that the pair had unfolded into 5 waves from 1.3267 through 1.2770 levels, labelled as 1 through 5, which forms wave (1). The pair is seen to be lagging behind its counterparts since the counter trend rally looks to be incomplete, as labelled here A-B-C?. Please note that wave C still looks to be incomplete and should be looking to push towards 1.3050/70 levels at least. Also wave A becomes equal to wave C at 1.3050 levels, hence high probability of wave (2) is terminating there. Please look to again go short at those levels for a drop towards 1.2500 and lower levels. Strong resistance is seen at 1.3267 levels, while immediate support is at 1.2850 levels respectively.
Trading plan:
Please remain short and look to add further around 1.3050 levels again, stop at 1.3270, target 1.2400 and lower.
Fundamental outlook:
There are no major events lined up for the rest of the day.
Good luck!
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