2018-02-12
Recently, the GBP/USD has been trading sideways at the price of 1.3844. According to the 30M time - frame, I found that the price has broke the upward channel in the background, which is a sign that buying looks risky. I also found a successful rejection of the pivot level (1.3860) and the doji candle, which is a sign that sellers are in control. My advice is to watch for potential selling opportunities. The downward targets are set at the price of 1.3735 and at the price of 1.3640.
Resistance levels:
R1: 1.3955
R2: 1.4083
R3: 1.4175
Support levels:
S1: 1.3733
S2: 1.3638
S3: 1.3511
Trading recommendations for today: watch for potential selling opportunities.
Analysis of Gold for February 12, 2018
2018-02-12
Recently, the Gold has been trading sideways at the price of $1,320.00. According to the 30M time - frame, I found that rejection of the pivot resistance 2 at the price of $1,328.00, which is a sign that buying looks risky. I also found a breakout of intraday support cluster at $1,322.00, which is a sign that sellers are in control. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $1,316.55 and at the price of $1,310.40.
Resistance levels:
R1: $1,321.89
R2: $1,328.05
R3: $1,333.40
Support levels:
S1: $1,310.38
S2: $1,305.00
S3: $1,298.83
Trading recommendations for today: watch for potential selling opportunities.
Trading Plan for EUR/USD and US Dollar Index for February 12, 2018
2018-02-12
Technical outlook:
The EUR/USD pair seems to be just one leg away from terminating into its wave 4 of one lesser degree, from what has been projected on the daily chart. The pair might form just one more low below 1.2205 levels before turning higher again, or it is done and could continue higher from current levels. In either case please note that going long on dips remain a safe strategy for now. Immediate support comes in at 1.2161 levels, while interim resistance is at 1.2537 levels respectively. Also, note that the pair is finding support at the 0.382 fibonacci level of the 3rd wave of the same degree. Furthermore, the channel line support is also seen around current levels and hence one can expect turn soon. Looking at the bigger picture, the wave (5) rally should terminate above 1.2537 levels.
Trading plan:
Look to remain long with risk around 1.2250 levels.
US Dollar Index chart setups:
Technical outlook:
The US Dollar Index, seem to be into its last leg rally before terminating into wave 4 of a lesser degree, as depicted on the daily chart here. With respect to the price action, the 4th wave is expected to terminate around 91.00 levels before the index drops into its wave (5) of a larger degree. Immediate resistance is seen at 91.00 levels while interim support is seen at 88.40 levels respectively. Also note that the underlying is testing Fibonacci 0.382 resistance of wave 3 drops, a common relationship for wave 4 to terminate. Furthermore, the channel line resistance is also nearby, indicating a bearish turn is close. The bigger picture reveals that the US Dollar Index should terminate its 5th wave of one larger degree, below 88.40 levels.
Trading plan:
Remain short with risk above 91.00 levels.
Fundamental outlook:
No major events lined up for the day.
Good luck!
Intraday technical levels and trading recommendations for EUR/USD for February 12, 2018
2018-02-12
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 and recently above 1.2075.
Another bullish breakout above 1.2250 is being expressed on the chart. This hinders the bearish momentum allowing bullish advancement to occur towards 1.2750.
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.
The 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 is needed to confirm a recent bullish flag continuation pattern with projected targets towards 1.2750.
However, a recent bearish pullback is being expressed below the price level of 1.2350. This may extend towards 1.2070 if a bearish breakdown of the level of 1.2200 is achieved on a daily basis.
NZD/USD Intraday technical levels and trading recommendations for February 12, 2018
2018-02-12
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 depicted 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 were expected.
On February 2, a bearish engulfing daily candlestick was expressed. This enhances the bearish scenario initially towards the price levels of 0.7230 - 0.7165 where price action should be watched for a possible bullish recovery.
Our suggested SELL position around 0.7390 is already running in profits. Bearish fixation below 0.7160 allows further bearish decline towards 0.7090 while S/L should be lowered to 0.7260 to secure some profits
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