2018-01-24
The price is now testing major support at 0.9569 (Fibonacci extension, horizontal swing low support) and we expect a bounce above this level to push the price up to at least 0.9699 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (21,5,3) is seeing major support above 3.7% where a corresponding bounce could occur.
Buy above 0.9569. Stop loss at 0.9501. Take profit at 0.9699.
EUR/USD testing major resistance, prepare for a drop
2018-01-24
The price is now testing major resistance at 1.2309 (Fibonacci extension, horizontal swing high resistance, bearish harmonic formation) and a drop could occur at this level to push the price down to at least 1.2210 support (Fibonacci retracement, horizontal swing low support).
Stochastic (21,5,3) is seeing major resistance at 94% where a corresponding reaction could occur.
Sell below 1.2309. Stop loss at 1.2359. Take profit at 1.2210.
Elliott wave analysis of EUR/JPY for January 24, 2018
2018-01-24
Wave summary:
No change in our view.
We continue to look for a clear break below 135.00 confirming wave B peaked at 136.31 and wave C lower to 131.11 is developing. Short-term, we have seen a minor resistance at 135.71, which ideally will be able to cap the upside for the expected break below 135.00.
R3: 136.64
R2: 136.31
R1: 136.01
Pivot: 135.71
S1: 135.00
S2: 134.78
S3: 134.37
Trading recommendation:
We are short EUR from 134.75 with stop placed at 136.75.
Elliott wave analysis of EUR/NZD for January 24, 2018
2018-01-24
Wave summary:
We need to see a break above minor resistance at 1.7026 to confirm that wave ii completed with the test of 1.6684 and wave iii higher towards 1.7360 and 1.7777 is developing.
As long as minor resistance at 1.7026 stays untouched, we will need to allow for a final spike lower to 1.6679, but it's not necessary.
R3: 1.6850
R2: 1.6809
R1: 1.6772
Pivot: 1.6713
S1: 1.6684
S2: 1.6679
S3: 1.6662
Trading recommendation:
We are long EUR from 1.6695 with our stop placed at 1.6550.
Fundamental Analysis of EUR/JPY for January 24, 2018
2018-01-24
EUR/JPY has been making corrective moves, having no definite trend or market pressure above the 134.50-135.00 support area. Both currencies in the pair is struggling amid mixed economic reports which made market participants hesitate about preferences. This lead to further correction in the pair. Recently, BOJ Policy Rate report was published with the unchanged key interest rate at -0.10% as expected and All Industry Activity report showed a significant increase to 1.0% from the previous value of 0.3% which also helped the currency to gain momentum over EUR. Today, Japan's Trade Balance report showed a different picture of a notable decrease to 0.09T from the previous figure of 0.29T which was expected to be at 0.27T and Flash Manufacturing PMI report showed a slight increase to 54.4 from the previous figure of 54.0 which was expected to be at 54.3. On the other hand, today French Flash Manufacturing PMI report was published with a decrease to 58.1 from the previous figure of 58.8 which was expected to be at 58.7 and French Flash Services PMI report showed an increase to 59.3 from the previous figure of 59.1 which was expected to be at 58.9. Moreover, German Flash Manufacturing PMI report is going to be published which is expected to have a slight decrease to 63.2 from the previous figure of 63.3, German Flash Services is expected to decrease to 55.6 from the previous figure of 55.8, eurozone's Flash Manufacturing PMI is expected to decrease to 60.4 from the previous figure of 60.6 and eurozone's Flash Services PMI is expected to have a slight decrease to 56.5 from the previous figure of 56.6. As for the current scenario, investors expect mixed economic reports today from the eurozone. Speaking about JPY, correction and indecision is expected to continue further in the coming days. JPY has found support from the economic reports recently that is expected to lead to further bearish pressure in the pair until the eurozone comes up with any positive economic reports in the short term to change the market sentiment.
Now let us look at the technical view. The price is residing above the support area from 134.50 to 135.00 and the dynamic level of 20 EMA as well. Due to higher volatility and correction, the price is expected to break lower having Bearish Regular Divergence in place. The price is likely to be impulsive with pullbacks after it breaks below 134.50 with a daily close in the coming days. As the price remains below 136.30 resistance area, the bearish bias is expected to continue further.
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