2017-12-08
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 had 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 allowed a quick advance towards 1.2100 where the recent evidence of bearish rejection was expressed (note the previous monthly candlestick of September).
Daily Outlook
In January 2017, the previous downtrend was reversed when the Inverted 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 a further 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 was expressed towards the price level of 1.2100 where the depicted Head and Shoulders reversal pattern was expressed.
If the recent bearish breakout persists below 1.1700 (the neckline of the reversal pattern), a quick decline should be expected towards the price zone of 1.1415-1.1520 (initial targets for the depicted H&S pattern).
Bearish target for the depicted Head and Shoulders pattern extends towards 1.1350. However, to pursue towards the mentioned target level, significant bearish pressure is needed to be applied against the mentioned zone (1.1415-1.1520).
However, the recent price action around the zone of 1.1520-1.1415 indicated evident bullish recovery. This hinders further bearish decline as long as the recent low around 1.1550 remains unbroken.
Trade Recommendations
The price levels around 1.1900-1.1950 were suggested for a valid short-term SELL entry. It's already running in profits.
S/L should be lowered to 1.1870 to secure some of the profits. T/P levels to be located at 1.1700 and 1.1590.
Intraday technical levels and trading recommendations for NZD/USD for December 8, 2017
2017-12-08
Daily Outlook
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.
This resulted in a quick advance towards the next price zones around 0.7150-0.7230 (the key zone) and 0.7310-0.7380 which was temporarily breached to the upside.
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 enhanced the bearish side of the market. This brought the NZD/USD pair again towards 0.7230-0.7150 (the key zone) which failed to pause the ongoing bearish momentum.
An atypical Head and Shoulders pattern was expressed on the depicted chart which initiated bearish reversal.
As expected, the price level of 0.7050 failed to offer enough bullish support for the NZD/USD pair. That's why, further bearish decline was expected towards 0.6800 (Reversal pattern bearish target).
Evident signs of bullish recovery were expressed around the recent low (0.6780). That's why, a bullish pullback was expected towards 0.7050.
On the other hand, an inverted Head and Shoulders pattern is being established on the chart indicating bullish reversal.
That's why, the price zone of 0.6800-0.6830 can be considered for a short-term BUY entry. S/L should be placed below 0.6770. T/P level remains projected towards 0.7050.
Trading plan for EUR/USD and USDX for December 05, 2017
2017-12-08
Technical outlook:
The EUR/USD pair drops closer to 1.1700 levels, just a few pips away now from the expected levels. The structure still remains intact for bears to continue dropping lower but it is recommended to take profits around the 1.1680/1.1700 levels. Please also note that fibonacci 0.618 support comes in around the same price hence an interim bounce can be expected before the drop may continue. The wave count also suggests that the pair is either carving out a corrective A-B-C drop or it would continue dropping and unfold as an impulse. Please keep the bigger picture in mind that EUR/USD may drop towards 1.14 and lower as well as discussed during early this week. Support comes in around 1.1700 levels, while resistance lies around 1.1850 levels.
Trading plan:
Please remain short and look to take maximum profit at 1.1700 levels.
US Dollar Index chart setups:
Technical outlook:
The US dollar index is approaching our soft targets defined around 94.10/20 levels as discussed earlier. Please look to take maximum profits around those levels and be prepared for a corrective drop to go long again. Also note that the Fibonacci 0.618 resistance of earlier drop is also passing through 94.10 levels and a temporary bearish reaction is expected there. The wave structure also indicates that the index is carving out an A-B-C corrective rally from 92.50 levels or it is unfolding into a 5 wave impulse. Let us remind to please keep the bigger picture in mind that indicates the US dollar index may be ready to push through 95.00 and higher levels after a corrective drop. Resistance is seen at 94.20 while support lies at 92.50.
Trading plan:
Please remain long and look to take maximum profits around 94.10/20 levels.
Fundamental outlook:
Watch out for US Non farm payrolls coming in at 08:30 am EST
Good luck!
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