2017-12-29
Overview:
As expected, the USD/CHF pair continues to move downwards from the areas of 0.9800. Yesterday, the pair dropped from the level of 0.9800 to 0.9757, which coincides with a ratio of 23.6% Fibonacci on the H4 chart. Today, resistance is seen at the levels of 0.9800 and 0.9849. So, we expect the price to set below the strong resistance at the levels of 0.9800 and 0.984; because the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 0.9800 and 0.9734 (double bottom). In overall, we still prefer the bearish scenario as long as the price is below the level of 0.9800. Furthermore, if the USD/CHF pair is able to break out the bottom at 0.9734, the market will decline further to 0.9700 (the level of 0.9734 will form a double bottom). On the other hand, if the price closes above the strong resistance of 0.9849, the best location for a stop loss order is seen above 0.9760; hence, the price will fall into a bearish trend in order to go further towards the strong support at 0.9700 to test it again.
Technical analysis of NZD/USD for December 29, 2017
2017-12-29
Overview:
Pivot point is seen at the price of 0.7062.
The NZD/USD pair is moving upwards from the level of 0.7062. Last two days, the pair rose from the level of 0.7062 to a top around 0.7090. Today, the first resistance level is seen at 0.7160 followed by 0.7227, while daily support 1 is seen at 0.7062. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7050 and 0.7160. Furthermore, if the trend is able to break out through the first resistance level at 0.7160, we should see the pair climbing towards the double top (0.7227) to test it. Therefore, buy above the level of 0.7100 with the first target at 0.7160 in order to test the daily resistance 1 and further to 0.7227. Also, it might be noted that the level of 0.7227 is a good place to take profit because it will form a new double top on the H4 chart. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.7062, a further decline to 0.6978 can occur which would indicate a bearish market. On the whole, we still look for a strong bullish market as lon as the trend is still set above the spot of 0.7062.
NZD/USD Intraday technical levels and trading recommendations for December 29, 2017
2017-12-29
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 bullish advance towards next price zones around 0.7150-0.7230 (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 (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 was expressed around the recent low (0.6780). That's why, a bullish pullback is expected towards 0.7050.
Moreover, further bullish advance should be expected towards 0.7150 if enough bullish momentum is expressed above the price level of 0.7050.
Trade Recommendations:
An inverted Head and Shoulders pattern was established on the chart indicating high probability of bullish momentum.
That's why, the price zone of 0.6800-0.6830 was considered for a short-term BUY entry. Bullish persistence above 0.6950 and 0.7050 is mandatory to pursue towards next bullish targets.
S/L should be moved to 0.7040 to secure some profits. T/P level remains projected towards 0.7150 and 0.7240.
Technical analysis of NZD/USD for December 29, 2017
2017-12-29
All our upside targets which we predicted in yesterday's analysis have been hit. NZD/USD is still expected to trade with a bullish outlook.
The pair remains on the upside, and is also supported by its rising 50-period moving average. The relative strength index is bullish above its ascending trend line support. In addition, a strong support base at 0.7070 should limit any downward attempts.
To sum up, as long as 0.7070 is not broken, likely advance to 0.7135 and 0.7150 in extension.
The black line shows the pivot point. Currently, the price is above the pivot point, which is a signal for 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: 0.7135, 0.7150, and 0.7185
Support levels: 0.7050, 0.7025, and 0.700
Intraday technical levels and trading recommendations for EUR/USD for December 29, 2017
2017-12-29
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 allowed a quick bullish advance towards 1.2100 where 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 further bullish advance towards 1.1415-1.1520 (Previous Daily Supply-Zone).
The daily supply zone failed to pause the ongoing bullish momentum. Instead, 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 (Neckline of the reversal pattern), a quick bearish 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, In November, recent price action around the price zone of 1.1520-1.1415 indicated evident bullish recovery.
This hindered further bearish decline which allowed the current bullish pullback to occur towards the price level of 1.2000 where price action should be watched for a possible SELL entry.
Technical analysis of GBP/JPY for December 29, 2017
2017-12-29
All out targets which we predicted in yesterday's analysis have been hit. The pair resumed its upward momentum, and is now challenging its resistance at 0.8895. A bullish breakout of this threshold seems more likely to occur, as the 50-period moving average is turning up, and plays well a support. Last but not least, the relative strength index calls for a new rise.
To sum up, above 151.45, look for further advance to 152.35 and 152.60 in extension.
Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 151.45 with the target at 151.20
Strategy: BUY, Stop Loss: 151.45, Take Profit: 152.35
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: 152.35, 152.60, and 153.00
Support levels: 151.20, 151.00, and 150.55
Technical analysis of USD/CHF for December 29, 2017
2017-12-29
All our targets which we predicted in yesterday's analysis have been hit. The pair is heading downward now, and is expected to test its next support at 0.9770. The risk of a slide below this threshold remains high, as both the 20-period and 50-period moving averages are heading downward, and call for further decline. The relative strength index is below its neutrality area at 50. In these perspectives, as long as 0.9810 is not surpassed, likely decline to 0.9730 and 0.9750 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: 0.9810, Take Profit: 0.9730
Resistance levels: 0.9840, 0.9860, and 0.9900
Support levels: 0.9730, 0.9700, and 0.9650
Technical analysis of USD/JPY for December 29, 2017
2017-12-29
All our downside target which we predicted in yesterday's analysis have been hit. Despite of recent rebound from 112.65 (the low of December 28), the pair is still capped by a declining 50-period moving average. The relative strength index is below its neutrality level at 50. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. To conclude, below 113.00, look for a further decline with targets at 112.20 and 112.00 in extension.
Alternatively, if the price moves in the opposite direction, a long position is recommended above 113.00 with a target of 113.15.
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: SELL, Stop Loss: 113.00, Take Profit: 112.20
Resistance levels: 113.15, 113.35 and 113.85 Support Levels: 112.20, 112.00, 111.70
Analysis of GBPJPY 29.12.2017
Written by: PaxForex analytics dept - Friday, 29 December 20170 comments
The price above MA 200 and 20 MA, indicating a growing trend.
The MACD histogram is above the zero line.
The oscillator Force Index is above the zero line.
If the level of resistance is broken, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Long Position
• Entry Level: Long Position 152.15
• Take Profit Level: 153.00 (85 pips)
If the price rebound from resistance level, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Short Position
• Entry Level: Short Position 151.45
• Take Profit Level: 151.00 (45 pips)
The MACD histogram is above the zero line.
The oscillator Force Index is above the zero line.
If the level of resistance is broken, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Long Position
• Entry Level: Long Position 152.15
• Take Profit Level: 153.00 (85 pips)
If the price rebound from resistance level, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Short Position
• Entry Level: Short Position 151.45
• Take Profit Level: 151.00 (45 pips)
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