2018-02-19
Recently, the EUR/USD has been trading downwards. The price tested the level of 1.2405. Anyway, according to the 30M time – frame, I found a fake brreakout of Friday at the price of 1.2393, which is a sign that selling looks risky. I also found a hidden bullish divergence on the stochastic oscillator in the background, which is another sign of the strength. My advice is to watch for potential buying opportunities. The upward targets are set at the price of 1.2450 and at the price of 1.2510.
Resistance levels:
R1: 1.2511
R2: 1.2615
R3: 1.2675
Support levels:
S1: 1.2350
S2: 1.2290
S3: 1.2190
Trading recommendations for today: watch for potential buying opportunities.
USD/JPY analysis fo February 19, 20182018-02-19
Recently, the USD/JPY has been trading upwards. The price tested the level of 106.65. Anyway, according to the 30M time – frame, I found a successful rejection of pivot resistance 1 at the price of 106.60, which is a sign that buying looks risky. I also found a hidden bearish divergence on the stochastic oscillator, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of 106.40 and at the price of 106.08.
Resistance levels:
R1: 106.60
R2: 106.93
R3: 107.46
Support levels:
S1: 105.75
S2: 105.22
S3: 104.90
Trading recommendations for today: watch for potential selling opportunities.
Intraday technical levels and trading recommendations for EUR/USD for February 19, 20182018-02-19
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 was expressed on the chart. This hinders the bearish momentum allowing bullish advancement to occur towards 1.2750.
Daily Outlook
In September, the bearish target for the depicted Head and Shoulders pattern was projected 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 momentum 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.
On the other hand, a recent bearish pullback was being expressed below the price level of 1.2450. This could extend towards 1.2070 if a bearish breakdown of the level of 1.2200 is achieved on a daily basis (low probability).
NZD/USD Intraday technical levels and trading recommendations for February 19, 20182018-02-19
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 the further bearish decline was expected towards 0.6800 (Reversal pattern bearish target).
Evident signs of bullish recovery were 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 recent bullish recovery was expressed.
Bearish fixation below 0.7160 is needed to allow further bearish decline towards 0.7090.
On the other hand, the current price zone (0.7320-0.7390) remains a significant supply zone to offer a possible bearish rejection and another SELL entry. Stop Loss should be as a daily candlestick above 0.7450.
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