2018-01-24
USD/CAD has been trading with impulsive pullbacks. The pair is currently residing below the 1.2400 support area. CAD has been quite strong amid economic reports which enabled the currency to gain impulsive momentum over USD last month. USD has been struggling to gain ground since the recent rate hike decision taken by the US Fed in December. USD has been affected by lower inflation which has dealt a blow to the US economy. As a result, USD weakened against CAD. Today, US PMI report is going to be published which is expected to decrease to 0.4% from the previous value of 0.5%, Flash Manufacturing PMI report is expected to have a slight increase to 55.2 from the previous figure of 55.1, Flash Services PMI report is also expected to increase to 54.5 from the previous figure of 53.7, Existing Home Sales report is expected to decrease to 5.72M from the previous figure of 5.81, and Crude Oil Inventories is expected to show less deficit at -1.0M from the previous figure of -6.9M. On the other hand, tomorrow Canada's Core Retail Sales report is going to be published which is expected to increase to 0.9% from the previous value of 0.8% and Retail Sales is expected to decrease to 0.8% from the previous value of 1.5%. Though the outcome is expected to be quite mixed, any positive result in the high impact report is expected to provide more impulsive pressure for CAD in the coming days. To sum up, CAD is expected to gain more momentum against USD in the coming days unless any positive high impact economy report is released in the US.
Now let us look at the technical view. The price is residing below the 1.24 support area with an impulsive bearish pressure which is expected to lead to further bearish pressure in the coming days with a target towards 1.21. As the price remains below 1.25 price area, the bearish bias is expected to continue further.
Technical analysis of NZD/USD for January 24, 2018
2018-01-24
Overview:
The NZD/USD pair continued moving upwards from the level of 0.7260. Yesterday, the pair rose from the level of 0.7260 (weekly support) to the top around 0.7400. Today, the first support level is seen at 0.7260 followed by 0.7168, while daily resistance is seen at 0.7465. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7391 and 0.7465; for that we expect a range of 74 pips in coming hours. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. Furthermore, if the trend is able to break out through the first resistance level of 0.7465, we should see the pair climbing towards the double top (0.7557) to test it. On the contrary, if a breakout takes place at the support level of 0.7260, then this scenario may become invalidated. Remember to place a stop loss; it should be set below the second support of 0.7168.
Analysis of Gold for January 24, 2018
2018-01-24
Recently, Gold has been trading upwards. The price tested the level of $1,350.60. According to the 30M time – frame, I found that price broke the resistance cluster at the price of $1,344.65, which is a sign that buyers are in control. Now, the strong resistance cluster at the price of $1,344.65 became strong support and my advice is to watch for potential buying opportunities around that level. The upward target is set at the price of $1,357.00.
Resistance levels:
R1: $1,344.97
R2: $1.348.60
R3: $1,355.39
Support levels:
S1: $1,334.55
S2: $1,327.78
S3: $1,324.13
Trading recommendations for today: watch for potential buying opportunities.
Technical analysis of USD/CHF for January 24, 2018
2018-01-24
Overview:
The USD/CHF pair faces resistance at 0.9567, while strong resistance is seen at 0.5658. Support is found at 0.9420 and 0.9330 levels. Today, the USD/CHF pair continues to move downwards from 0.9567 level. The pair could fall from 0.9567 level to a minor support around 0.9493. In consequence, if the USD/CHF pair will break support at 0.9493, this level will turn into resistance today. In the H4 time frame, we expect the USD/CHF pair to continue moving in the bearish trend from 0.9493 level towards the target at 0.9420. In the long term, if the pair succeeds in passing through 0.9420 level , the market will indicate the bearish opportunity below 0.9420 level in order to reach the second target at 0.9330. However, the 0.9567-0.9658 mark remains a significant support zone. Thus, the trend will probably rebound again from 0.9658 level as long as this level is not breached. in overall, we still prefer the bearish scenario below the area of 0.9658.
Analysis of GBP/USD for January 24, 2018
2018-01-24
Recently, the GBP/USD pair has been trading upwards. The price tested the level of 1.4118. According to the 30M time frame, I found that price broke the daily pivot resistance 2, which is a sign that buyers are in control. I also found fresh upward cross on the stochastic oscillator, which is another sign of strength. My advice is to watch for potential buying opportunities. Intraday upward target is set at the price of 1.4158.
Resistance levels:
R1: 1.4046
R2: 1.4090
R3: 1.4158
Support levels:
S1: 1.3935
S2: 1.3870
S3: 1.3822
Trading recommendations for today: watch for potential buying opportunities.
Intraday technical levels and trading recommendations for EUR/USD for January 24, 2018
2018-01-24
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 1.2200 where recent evidence of bearish rejection was expressed (Note the Monthly candlestick of last September).
Daily Outlook
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.
Bearish target for the depicted Head and Shoulders pattern extends towards 1.1350. However, the market failed to apply significant bearish pressure against the mentioned zone (1.1415-1.1520).
Instead, In November, evident bullish recovery was manifested around the price zone of 1.1520-1.1415.
This hindered further bearish decline which allowed the current bullish pullback to occur towards the price level of 1.2100 which failed to pause the ongoing bullish momentum as well.
Daily persistence above 1.2150-1.2200 confirms a bullish flag continuation pattern with projected targets towards 1.2500.
Otherwise, bearish pullback may occur towards 1.2070 if a bearish breakout below 1.2160 is achieved on a daily basis (low probability).
NZD/USD Intraday technical levels and trading recommendations for January 24, 2018
2018-01-24
Daily Outlook
In July 2017, an atypical Head and Shoulders pattern was expressed on the depicted chart which indicated upcoming 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). An inverted Head and Shoulders pattern was expressed around these price levels.
The price zone of 0.7140-0.7250 (prominent Supply-Zone) failed to pause the ongoing bullish momentum. Instead, a bullish breakout above 0.7250 was expressed on January 11.
That's why, the current bullish movement extended towards the price levels of 0.7320 and probably 0.7390.
A quick bullish movement is expected towards the depicted supply zone (0.7320-0.7390) where price action should be watched for evident bearish rejection and a valid SELL entry.
Trade Recommendations:
Conservative traders should be looking for a valid SELL entry anywhere around the depicted supply zone (0.7320-0.7390).
S/L should be located above 0.7450. T/P levels should be located around 0.7230, 0.7150 and 0.7090.
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