Recently, the GBP/USD pair has been trading sideways at the price of 1.3958. Anyway, according to the 30M time – frame, I found a broken intraday bearish flag pattern, which is a sign that sellers are in control. I also found an overbought condition on the stochastic oscillator, which is another sign of weakness. My avice is to watch for potential selling opportunities. The downward targets are set at the price of 1.3928, 1.3905 and at the price of 1.3848.
Resistance levels:
R1: 1.4048
R2: 1.4130
R3: 1.4190
Support levels:
S1: 1.3905
S2: 1.3847
S3: 1.3765
Trading recommendations for today: watch for potential selling opportunities.
Analysis of Gold for February 27, 20182018-02-27
Recently, Gold has been trading downwards. As I expected, the price tested the level of $1,330.70. Anyway, I found a breakout of the upper channel, which is a sign that buying looks risky. I also found an overbought condition 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 $1,326.87 and at the price of $1,321.00.
Resistance levels:
R1: $1,340.65
R2: $1,348.05
R3: $1,355.00
Support levels:
S1: $1,326.30
S2: $1,319.30
S3: $1,311.90
Trading recommendations for today: watch for potential selling opportunities.
Technical analysis of NZD/USD for February 27, 20182018-02-27
Overview:
As expected, the NZD/USD pair continues to move downwards from the areas of 0.7337 and 0.7314. Last week, the pair dropped from the level of 0.7337 to 0.7280, which coincides with a ratio of 23.6% Fibonacci on the H4 chart. Today, resistance is seen at the levels of 0.7337 and 0.7280. So, we expect the price to set below the strong resistance at the levels of 0.7337 and 0.7280; because the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 0.7314 and 0.7238. In overall, we still prefer the bearish scenario as long as the price is below the level of 0.7314. Furthermore, if the NZD/USD pair is able to break out the first support at 0.7285, the market will decline further to 0.7238. Hence, the price will fall into a bearish trend in order to go further towards the second support at 0.7261. The level of 0.7238 will form a double bottom to test it again. On the other hand, if the price closes above the strong resistance of 0.7337, the best location for a stop loss order is seen above 0.7350.
Technical analysis of USD/CHF for February 27, 20182018-02-27
Overview:
The USD/CHF pair could not break the major support at the 0.9328 level yet. The level of 0.9328 coincides with 50% of Fibonacci retracement which is expected to act as major support today. Equally important, the RSI is still signaling that the trend is upward, while the moving average (100) is headed to the upside.
Accordingly, the bullish outlook remains the same as long as the EMA 100 is pointing to the uptrend. This suggests that the pair will probably go above the price of 0.9328 in the coming hours.
The USD/CHF pair will demonstrate strength following a breakout of the high at 0.9328. Consequently, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.9328 with the first target at 0.9409. Then, the pair is likely to begin an ascending movement to 0.9436 marks and further to 0.9469 levels. The level of 0.9469 will act as strong resistance because it forms the double top on the H1 chart.
On the other hand, the daily strong support is seen at 0.9328. If the USD/CHF pair is able to break out the level of 0.9328, the market will decline further to 0.9254 (38.2% Fibonacci retracement).
Fundamental Analysis of USD/JPY for February 27, 20182018-02-27
USD/JPY is currently consolidating below 107.30-50 price area from where the price is expected to push lower. Ahead of USD high impact economic reports to be published today, the market is quite indecisive having positive JPY economic report today. JPY BOJ Core CPI report was published today with an increase to 0.8% from the previous value of 0.7% which was expected to decrease to 0.6%. The positive economic report of JPY lead to certain indecision in the market resulting in more correction below 107.30-50 area. This week there are several economic reports to be published on the JPY side, which is expected to have a good impact on the upcoming growth of the currency against USD. On the other hand, today USD Core Durable Goods Orders report is going to be published which is expected to decrease to 0.4% from the previous value of 0.7%, Durable Goods Orders report is expected to be negative at -2.4% from the previous positive value of 2.8%, Goods Trade Balance report is expected to be unchanged at -72.3B and CB Consumer Confidence is expected to have slight increase to 126.2 from the previous figure of 125.4. Moreover, today Fed Chair Powell is going to testify the upcoming monetary policies and interest rate hike in March 2018. As of the current scenario, the pair is expected to be quite volatile this week having a number of impactful economic reports on the USD side and JPY side as well. To sum up, USD is expected to gain momentum in the coming days ahead of the Rate Hike in the coming days whereas positive economic report results will provide a good push to the USD buyers in the future.
Now let us look at the technical view. The price is expected to proceed towards 107.30-50 price area before showing any bearish or bullish pressure in the coming days. A daily close above 107.50 is expected to lead to further bullish pressure with target towards 108.50. On the other hand, a bullish rejection off the 107.50 with a daily close is expected to push the price lower towards 105.50.
Fundamental Analysis of GBP/USD for February 27, 20182018-02-27
GBP/USD has been quite bearish recently above the support area of 1.3850-1.3950 from where the price is expected to push lower in the coming days. Ahead of the high impact economic reports this week, USD is expected to take the lead in the pair whereas mixed economic reports of GBP published recently is holding the currency back. Today USD Core Durable Goods Orders report is going to be published which is expected to decrease to 0.4% from the previous value of 0.7%, Durable Goods Orders report is expected to be negative at -2.4% from the previous positive value of 2.8%, Goods Trade Balance report is expected to be unchanged at -72.3B and CB Consumer Confidence is expected to have slight increase to 126.2 from the previous figure of 125.4. Moreover, today Fed Chair Powell is going to testify the upcoming monetary policies and interest rate hike in March 2018. On the other hand, today we had no GBP economic report to help the currency to protect its grounds but on Thursday Manufacturing PMI report is going to be published which is expected to have slight decrease to 55.1 from the previous figure of 55.3 and Net Lending to Individuals is expected to increase to 5.4B from the previous figure of 5.2B. Moreover, on Friday Construction PMI is expected to increase to 50.5 from the previous figure of 50.2 along with Prime Minister May and Bank of England Governor Carney to speak about upcoming monetary policies and economic developments of Britain. As of the current scenario, USD is expected to take the lead until GBP comes up with positive economic report and development possible in the Friday events to push back higher in the future.
Now let us look at the technical view. The price is currently residing at the edge of 1.3850-1.3950 support area from where the price is expected to break below 1.3850 and proceed lower towards 1.36 support area in the coming days. There has been a number of bullish rejections along the way from where the Pre-Breakout Squeeze structure is formed. As the price remains below 1.4050 area, the bearish bias is expected to continue further.
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