2018-01-30
Wave summary:
The correction in wave ii/ continues to develop nice and slow for an expected dip to 1.6800 before wave iii/ takes over for a rally towards 1.7360 on the way higher to 1.7479 and 1.7777.
Short-term a minor resistance is seen at 1.6957 and only a break above here will indicate that wave ii/ has completed and wave iii/ is developing.
R3: 1.7150
R2: 1.7064
R1: 1.7013
Pivot: 1.6857
S1: 1.6803
S2: 1.6740
S3: 1.6707
Trading recommendation:
We are long EUR from 1.6695 with stop at break-even.
Technical analysis of USD/JPY for Jan 30, 2018
2018-01-30
In Asia, Japan will release the BOJ Core CPI y/y, Retail Sales y/y, Unemployment Rate and Household Spending y/y data, and the US will release some Economic Data such as CB Consumer Confidence and S&P/CS Composite-20 HPI y/y. So, there is a probability the USD/JPY will move with a low to medium volatility during this day.
TODAY'S TECHNICAL LEVEL:
Resistance. 3: 109.57.
Resistance. 2: 109.35.
Resistance. 1: 109.14.
Support. 1: 108.86.
Support. 2: 108.65.
Support. 3: 108.45.
Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Technical analysis of EUR/USD for Jan 30, 2018
2018-01-30
When the European market opens, some Economic Data will be released such as Italian 10-y Bond Auction, Prelim Flash GDP q/q, Spanish Flash GDP q/q, French Consumer Spending m/m, German Prelim CPI m/m and French Flash GDP q/q. The US will release the Economic Data too, such as CB Consumer Confidence and S&P/CS Composite-20 HPI y/y, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.
TODAY'S TECHNICAL LEVEL:
Breakout BUY Level: 1.2429.
Strong Resistance:1.2422.
Original Resistance: 1.2411.
Inner Sell Area: 1.2400.
Target Inner Area: 1.2374.
Inner Buy Area: 1.2347.
Original Support: 1.2336.
Strong Support: 1.2325.
Breakout SELL Level: 1.2318.
Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Fundamental Analysis of GBP/USD for January 30, 2018
2018-01-30
GBP/USD is currently showing some bearish pressure after bouncing off the 1.4350 resistance area recently with a daily close. GBP has been the dominant currency in the pair having positive economic reports which helped the currency to gain impulsive momentum over USD during its struggling period. Ahead of the upcoming high impact USD economic reports, GBP has already lost significant grounds which are expected to be a pullback before the long bullish run in the future. Today, GBP Net Lending to Individuals report is going to be published which is expected to decrease to 4.8B from the previous figure of 4.9B, M4 Money Supply is expected to increase to 0.2% from the previous value of 0.1%, and Mortgage Approvals is expected to increase to 66k from the previous figure of 65k. On the other hand, today, USD CB Consumer Confidence report is going to be published which is expected to increase to 123.2 from the previous figure of 122.1, and S&P C/S Composite 20-HPI report is expected to decrease to 6.3% from the previous value of 6.4%. As of the current scenario, USD is expected to gain momentum against GBP having mixed economic forecast for the upcoming reports and ahead of the high impact economic reports on Friday, USD is expected to gain momentum for a certain period before GBP pushes the price higher in the long-term.
Now let us look at the technical view. The price is expected to retrace towards the 1.3850 – 1.40 support area before it pushes higher towards the 1.45-1.46 resistance area in the coming days. After breaking above the 1.3850 area, this retracement was the most expected from where the price has higher probability of bouncing up. As the price remains above 1.3850, the bullish bias is expected to continue further.
Fundamental Analysis of EUR/JPY for January 30, 2018
2018-01-30
EUR/JPY is currently struggling at the edge of 134.50 support area with impulsive bearish momentum which is expected to break lower to create lower highs in the process. Both EUR and JPY have been struggling with the mixed economic reports recently, whereas JPY Industrial Activity progress and Development in Tertiary Industry helped the currency to gain some momentum over EUR recently. Today, JPY Household Spending report was published with negative value of -0.1% which decreased from the previous value of 1.7%, which was expected to be at 1.6%, Unemployment Rate increased to 2.8% which was expected to be unchanged at 2.7%, and Retail Sales report showed an increase to 3.6% which was expected to be unchanged at 2.1%. Moreover, today, BOJ Core CPI report is yet to be published which is expected to decrease to 0.5% from the previous value of 0.6%. On the EUR side, today, German Prelim CPI report is going to be published which is expected to be negative at -0.5% decreasing from the previous value of 0.6%, French Consumer Spending is expected to decrease to 0.4% decreasing from the previous value of 2.2%, Spanish Flash GDP is expected to slightly decrease to 0.7% from the previous value of 0.8%, and Prelim Flash GDP is expected to be unchanged at 0.6%. As of the current scenario, JPY has been quite mixed with the economic reports, whereas EUR is forecasted to have negative results of the economic reports to be published today. If the EUR economic reports result as expected or worse than expected then JPY is expected to gain further momentum in the coming days or else a series of positive reports on the EUR side today will increase the bullish momentum resulting to a bullish pressure in the market. A daily close today will define the upcoming movement in the pair for the coming days.
Now let us look at the technical view. The price is currently residing at the edge of 134.50 area which has breached below the dynamic level of 20 EMA recently with a daily close. Though the price is still above the 134.50 important price level but the pre-breakout structure is showing a bearish breakout is on the way. As the price breaks below 134.50 with a daily close, further bearish move is expected in this pair with target towards the 131.50 area.
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