2018-02-01
Recently, the GBP/USD has been trading upwards. The price tested the level of 1.4274. Anyway, according to the 30M time – frame, I found a successful rejection of upper diagonal (resistance), which is a sign that buying looks risky. I also found a hidden bearrish divergence on the stochastic oscillator, which is another sign of weakness. My advice is to watch for potential selling opportunties. The downward targets arre set at the prices of 1.4175 and 1.4125.
Resistance levels:
R1: 1.4243
R2: 1.4295
R3: 1.4355
Support levels:
S1: 1.4132
S2: 1.4070
S3: 1.4020
Trading recommendations for today: watch for potential selling opportunities.
Technical analysis of NZD/USD for February 01, 2018
2018-02-01
Overview:
The NZD/USD pair will continue rising from the level of 0.7305 in the long term. It should be noted that the support is established at the level of 0.7305 which represents the daily pivot point on the H4 chart. The price is likely to form a double bottom in the same time frame. Accordingly, the NZD/USD pair is showing signs of strength following a breakout of the highest level of 0.7305. So, buy above the level of 0.7305 with the first target at 0.7364 in order to test the daily resistance 1. Moreover, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests that the pair will probably go up in the coming hours. If the trend is able to break the level of 0.7364, then the market will call for a strong bullish market towards the objective of 0.7437. The level of 1.4250 is a good place to take profits today. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the level of 0.7305 (pivot), a further decline to 0.7202 can occur. It would indicate a bearish market.
Technical analysis of USD/CHF for February 01, 2018
2018-02-01
Overview:
The USD/CHF pair is still moving in downwards from the level of 0.9377. The price of 0.9377 represents the first resistance on the H1 chart. The pair fell from the level of 0.9377 to the bottom around 0.9393. Today, the first resistance level is seen at 0.9377 followed by 0.9432, while daily support is seen at the levels of 0.9289 and 0.9230. According to the previous events, the USD/CHF pair is still trapping between the levels of 0.9377 and 0.9230. Hence, we expect a range of 147 pips in the coming hours. The first resistance stands at 0.6790, for that if the USD/CHF pair fails to break through the resistance level of 0.9377, the market will decline further to 0.9289. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.9230 in order to test the second support (0.9230). On the contrary, if a breakout takes place at the resistance level of 0.9432, then this scenario may become invalidated. Also, it should be noted that the stop loss should be placed above the area of 0.9432.
EUR/USD analysis for February 01, 2018
2018-02-01
Recently, the EUR/USD pair has been trading upwards. The price tested the level of 1.2478. Anyway, according to the 30M time – frame, I found a potential head and shoulders pattern in creation, which is a sign that buying looks risky. I also found a successful rejection of reistance at the price of 1.2450, which is another sign of weakness. My advice is to watch for potential selling opportunities. The first downward target is set at the price of 1.2390. Anyway, to confirm head and shoulders patterrn you need to watch for a breakout of the neckline at the price of 1.2380. If you see a breakout of the neckline, a downward target will be set at the price of 1.2300.
Resistance levels:
R1: 1.2463
R2: 1.2513
R3: 1.2550
Support levels:
S1: 1.2375
S2: 1.2337
S3: 1.2290
Trading recommendations for today: watch for potential selling opportunities.
Intraday technical levels and trading recommendations for EUR/USD for February 1, 2018
2018-02-01
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 the 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 1.2470-1.2500 confirms a recent 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).
Intraday technical levels and trading recommendations for NZD/USD for February 1, 2018
2018-02-01
Daily Outlook
In July 2017, an atypical Head and Shoulders pattern was expressed on the depicted chart which indicated an 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 0.7390.
A quick bullish movement was expected towards the depicted supply zone (0.7320-0.7390) where evident bearish rejection and a valid SELL entry are still expected.
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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