2018-01-22
Technical outlook:
The EUR/USD pair is into its 5th wave of the rally that began in 2017 since 1.0350 levels. As labeled here, the probability remains for a drop towards 1.1950 levels at least as the termination point of wave 4 of a lesser degree. On the other hand, a drop towards 1.1717 levels would confirm that a meaningful top is in place at 1.2323 levels and that prices should drop lower into 3 waves at the same degree. In that case, the drop could extend towards 1.1000 levels as highlighted through Fibonacci ratios between 1.0350 and 1.2323 levels respectively. Furthermore, the pair has produced an ideal pin bar candlestick pattern on the weekly chart (not highlighted here), which is an indication of a potential bearish reversal this week. Interim resistance remains at 1.2323 levels for now.
Trading plan:
Please continue holding short positions, for now, stop above 1.2323 levels, target 1.1950 levels at least.
US Dollar Index chart setups:
Technical outlook:
The US Dollar index might have completed 5 waves drop since January 2017 from 103.80 levels. The index had formed lows at 90.20 levels last week before pulling back higher again. The index is expected to rally at least towards 92.60/70 levels as part of wave 4 terminations of a lesser degree and then drop lower to complete its 5th of 5th wave drop. On the alternate side, a break above 94.00 levels would confirm that a meaningful low is already in place around 90.20 and that the index would be staging a 3 wave rally towards 98.50 levels. This has been highlighted by the Fibonacci ratios/retracements between 103.80 and 90.20 levels respectively. Furthermore, looking at oscillators, bullish divergences are strongly seen on Daily charts (not shown here). Overall, buying on dips remains a favored strategy.
Trading plan:
Please hold long positions taken last week, stop at 90.00, target 92.70 levels at least.
Good luck!
Technical analysis of NZD/USD for January 22, 2018
2018-01-22
NZD/USD is expected to trade in a higher range as the bias remains bullish. The pair stands firmly above its key support at 0.7245 and is likely to post a new rebound. The intraday relative strength index is turning up, which should confirm a bullish outlook.
Hence, as long as 0.7245 holds on the downside, look for a new rise to 0.7310 and 0.7330 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, while the green line is indicating the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 0.7310, 0.7335, and 0.7370.
Support levels: 0.7220, 0.7190, and 0.7170.
Technical analysis of GBP/JPY for January 22, 2018
2018-01-22
GBP/JPY is expected to trade with a bullish outlook. The pair bounced off its horizontal level at 153.10, which acts as a strong support role, and should limit any downside room. In addition, the relative strength index has broken above its neutrality area at 50 and is mixed to bullish now.
Therefore, as long as 153.10 holds on the downside, likely advance to 154.25 and 154.60 in extension.
Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 153.10 with the target at 152.50
Strategy: BUY, stop loss at 153.10, take profit at 154.25
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 point, 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: 154.25, 154.60, and 155.00.
Support levels: 152.50, 152.00, and 151.45
Technical analysis of USD/CHF for January 22, 2018
2018-01-22
USD/CHF is expected to continue its rebound and expected to further advance. The pair is now in a bullish trend after the recent upside breakout of its declining trend line. The 20-period moving average reversed up, and also crossed above the 50-period one. Last but not least, the relative strength index stays above its neutrality area at 50, without showing any strong reversal signal.
To conclude, as long as 0.9575 is not broken, look for a new rise to 0.9670 and 0.9700 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 point 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: BUY, stop loss at 0.9575, take profit at 0.9670.
Resistance levels: 0.9670, 0.9700, and 0.9740
Support levels: 0.9550, 0.9535, and 0.9490.
Technical analysis of USD/JPY for January 22, 2018
2018-01-22
USD/JPY is under pressure. The pair is capped by a declining trend line since January 18, which confirmed a bearish outlook. The descending 50-period moving average is playing a resistance role. The relative strength index is mixed with a bearish bias.
To conclude, below 111.10, look for a new drop with targets at 110.50 and 110.20 in extension.
Alternatively, if the price moves in the opposite direction, a long position is recommended above 111.10 with a target of 111.45.
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 at 111.10, take profit at 110.50.
Resistance levels: 111.45, 111.70, and 112.05
Support levels: 110.50, 110.20, and 109.65.
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