2017-11-02
Our first upside target which we predicted in yesterday's analysis has been hit. NZD/USD is still expected to trade with Bullish bias above 0.6680. Although the pair retreated from 0.6930 (the high of November 1), a support base at 0.6880 has formed and has allowed for a temporary stabilization. The relative strength index lacks downward momentum.
Therefore, as long as 0.6880 is not broken, we are cautious with up targets at 0.6950 and 0.6970 in extension.
The black line is showing the pivot point. Currently, the price is above the pivot point, which indicates long positions. If it remains below the pivot point, it will indicate short positions. The red lines are showing the support levels and the green line is indicating the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 0.6950, 0.6970, and 0.6995
Support levels: 0.6850, 0.6830, and 0.6795
Technical analysis of GBP/JPY for November 02, 2017
2017-11-02
Our both targets which we predicted in Yesterday's analysis has been hit. GBP/JPY is expected to trade with bullish outlook above 150.80. The pair is striking against the upper Bollinger band while being supported by both the 20-period and 50-period moving averages. The relative strength index is well placed above the neutrality level of 50, showing a lack of downward momentum for the pair. As intraday bullishness persists, the pair is expected to proceed toward the first upside target at 151.85. Above that, the level of 152.30 would come into sight.
Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 150.80 with the target at 150.40.
Strategy: BUY, Stop Loss: 150.80, Take Profit: 151.85
Chart Explanation: the black line shows the pivot point. The price above the pivot point indicates long positions; and when it is below the pivot points, it indicates short positions. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 151.85, 152.30 and 152.90
Support levels: 150.40, 150.00, and 149.55
Elliott wave analysis of EUR/JPY for November 2, 2017
2017-11-02
Wave summary:
EUR/JPY is testing the lower part of the expected target-area for wave ii between 132.96 - 133.33 from where the next impulsive decline is expected towards 128.36 in wave iii. A break below support at 131.60 will confirm that wave (D) has completed and wave (E) is developing towards 123.43.
To keep wave (D) alive a break above 134.49 will be needed, which will call for a spike closer to 137.37 before turning lower in wave (E).
R3: 134.49
R2: 133.98
R1: 133.33
Pivot: 132.40
S1: 131.86
S2: 131.42
S3: 131.09
Trading recommendation:
We will sell EUR at 133.20 with stop placed at 134.55 or upon a break below support at 132.29.
Elliott wave analysis of EUR/NZD for November 2, 2017
2017-11-02
Wave summary:
We continue to look for more downside pressure towards 1.6545 to complete wave ii. Short-term, a minor rally towards 1.6911 could be seen before the expected dip to 1.6545 from where wave iii higher to 1.7977 is expected to take over.
Only a direct break above 1.6987 and more important a break above resistance at 1.7059 will confirm wave iii already is developing.
R3: 1.6954
R2: 1.6911
R1: 1.6857
Pivot: 1.6785
S1: 1.6712
S2: 1.6660
S3: 1.6545
Trading recommendation:
We bought EUR at 1.6890 with our stop placed at 1.6794. We will take half profit at 1.6910 and half profit again at 1.6955
Technical analysis of USD/CHF for November 02, 2017
2017-11-02
Our first target which we predicted in Yesterday's analysis has been hit. USD/CHF is expected to trade with a bearish bias. The pair retreated from 1.0035 (the high of November 1) and broke below its 20-period and 50-period moving averages. In addition, the bearish cross between 20-period and 50-period moving averages has been identified. The relative strength index is below its neutrality level at 50.
The U.S. Federal Reserve pointed out that the labor market has continued to strengthen and economic activity has been rising at a solid rate despite hurricane-related disruptions, hinting another rate rise would come before the year-end.
Meanwhile, Automatic Data Processing Inc (ADP) reported that private employers added 235,000 jobs in October, the most in seven months, compared with +110,000 jobs in September. The Institute for Supply Management (ISM) said its index of national factory activity slipped to 58.7 in October from 60.8 in September.
To conclude, below 1.0035, expect a new decline with targets at 0.9965 and 0.9935 in extension.
Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates a bullish position, and the price below the pivot points indicates a short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy: SELL, Stop Loss: 1.0035, Take Profit: 0.9965
Resistance levels: 1.0070, 1.0095, and 1.0135
Support levels: 0.9965, 0.9935, and 0.9900
Technical analysis of USD/JPY for November 02, 2017
2017-11-02
USD/JPY is expected to trade with bullish outlook above 113.55. The pair is trading above its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength is above its neutrality level at 50 and lacks downward momentum.
Therefore, as long as 113.55 holds on the downside, look for a further upside to 114.30 and even to 114.75 in extension.
Alternatively, if the price moves in the opposite direction, a short position is recommended below 113.55 with a target at 113.30.
Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position, while the price below the pivot point is a signal for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.
Strategy: BUY, Stop Loss: 113.55, Take Profit: 114.30
Resistance levels: 114.30, 114.75 and 114.90 Support Levels: 113.30, 112.95, 112.70
Fundamental Analysis of AUD/USD for November 2, 2017
2017-11-02
AUD/USD is currently bullish after breaking below the 0.7750 support area recently with a daily close. Despite having not so good economic reports recently AUD has been quite positive with the gains against USD. Today AUD Trade Balance report was published with an increase to 1.75B from the previous figure of 0.87B which was expected to increase to 1.42B and Building Approvals report also showed an increase to 1.5% from the previous value of 0.1% which was expected to be negative at -0.9%. The positive economic reports helped AUD to gain impulsively over USD today with unchanged Federal Funds Rate ahead of the NFP report this week. On the USD side, today Federal Funds Rate report was published with an unchanged value of 1.25% which is expected to show an increase on December and FOMC meeting was quite neutral for this month which leads to further weakness of the currency. Moreover, today USD Unemployment Claims report is going to be published which is expected to show an increase to 235k from the previous 233k, Prelim Non-Farm Productivity report is expected to publish with an increase to 2.5% from the previous value of 1.5%, Prelim Unit Labor cost is expected to increase to 0.5% from the previous value of 0.2%, Natural Gas Storage is expected to decrease to 63B from the previous figure of 64B and FOMC Member Powell and Dudley is going to speak about the key interest rates and future monetary policy which is expected to be neutral in nature. To sum up, the overall trend is still quite bearish and USD is expected to gain momentum against AUD by the end of this week which will lead to further bearish pressure in the future.
Now let us look at the technical view, the price is currently showing some bullish move towards the resistance area of 0.7750-0.7850. As the price progresses towards the resistance area to retest and reject off the level, it will also have a confluence of the dynamic level of 20 EMA to push the price lower in the coming days. As the price remains below 0.7850 resistance level with a daily close we will be looking forward to selling with the target towards 0.7500.
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