2018-07-30
EUR/USD has been quite corrective and volatile recently while residing below 1.1700-50 area with a daily close. Though the bears are more impulsive compared to the bulls, this may lead to certain bearish momentum, pushing the price much lower in the coming days.
In light of the recent ECB Press Conference, EUR is expected to lose momentum as the interest rates are expected to remain unchanged till Summer 2019. Besides, EUR has been weighed down by Brexit uncertainty and trade war tension. Ahead of a series of economic reports to be published this week in the eurozone, today Spain's Flash CPI report was published with a slight decrease to 2.2% which was expected to be unchanged at 2.3% and Germany's Prelim CPI report is yet to be published which is expected to show an increase to 0.4% from the previous value of 0.1%.
On the other hand, as the US NFP report is to be published this week on Friday, EUR/USD is likely to trade with higher volatility this week that might lead to significant changes in the market momentum against EUR. Though USD has been quite impulsive with the recent gains in comparison to EUR, this increases the chance of the market following it more in the future. Today, US Pending Home Sales report is going to be published which is expected to increase to 0.4% from the previous negative value of -0.5%.
At present, EUR proved to be quite soft today amid fresh economic report. Germany's Prelim CPI may add some value if the result comes out to be better than expected. Though there has been certain correction and volatility in the market earlier, USD is expected to gain an advantage amid optimistic forecasts of the economic reports ahead of the NFP this week.
Now let us look at the technical view. The price has been quite corrective while squeezing with a bearish pressure creating lower highs in the process. As connected with a trend line, the price is expected to push lower after certain retracement towards 1.17 area in the process. Having no strong Bullish Divergence evidence, the price is expected to push lower, residing below 1.17 area with a daily close and a target towards 1.1500-50 area in the coming days.
RESISTANCE: 1.1700-50
SUPPORT: 1.1500-50
BIAS: BEARISH
MOMENTUM: CORRECTIVE AND VOLATILE
Fundamental Analysis of USD/JPY for July 30, 2018
2018-07-30
USD/JPY has been quite impulsive with the recent bearish momentum after rejecting off the 113.20 with a daily close. The bearish momentum leads the price to fall towards 111.00 where the price has been corrective itself recently with a view of moving lower in the coming days.
USD having quite a tough time competing with JPY to sustain the gain it had earlier in this pair. Ahead of the NFP this week, which is expected to inject certain volatility in the pair, today USD Pending Home Sales report is going to be published which is expected to increase to 0.4% from the previous negative value of -0.5%.
On the other hand, ahead of the BOJ Policy Rate report to be published tomorrow, JPY is expected to gain certain momentum in the process against USD while USD is struggling without many impactful economic events. Today JPY Retail Sales report is published with an increase to 1.8% from the previous value of 0.6% which was expected to be at 1.7%. Despite the positive economic reports, today JPY failed to gain the expected momentum which does indicate the sustainability USD is growing currently ahead of NFP this week.
As of the current scenario, JPY is still expected to continue its momentum lower despite the upcoming NFP report which may lead to certain spikes in the market. As JPY continues to provide better economic reports this week, it is expected continue gaining momentum against USD in the process.
Now let us look at the technical view. The price is currently quite corrective but as it is residing below the dynamic level of 20 EMA while also residing below 113.20 area with a daily close, the price is expected to push lower towards the support area of 108.50-109.20 in the coming days.
RESISTANCE: 113.20
SUPPORT: 108.50 - 109.20
BIAS: BEARISH
MOMENTUM: VOLATILE
Fundamental Analysis of EUR/JPY for July 30, 2018
2018-07-30
EUR/JPY is currently residing at the edge of 129.50 area from where it is expected to push higher again with the target towards 132.00 area in the future. JPY having straight gains since it bounced off the 132.00 area was expected to inject more bearish momentum in the pair whereas the current formation is indecisive.
As of the recent ECB Press Conference, EURO is expected to lose some momentum as the interest rates are expected to remain unchanged till Summer 2019 and Brexit impact as well as Trade War tension. Ahead of the series of economic reports to be published this week on EURO, today EURO Spanish Flash CPI report was published with slight decrease to 2.2% which was expected to be unchanged at 2.3% and German Prelim CPI report is yet to be published which is expected to show an increase to 0.4% from the previous value of 0.1%.
Today JPY Retail Sales report is published with an increase to 1.8% from the previous value of 0.6% which was expected to be at 1.7%. Despite the significant growth on the Retail Sales, JPY failed to sustain the momentum whereas EUR is currently quite impulsive with the bullish momentum.
As of the current scenario, ahead of the BOJ Policy Rate tomorrow, the pair is expected to be quite volatile but a daily close today will provide the required information for the upcoming momentum in the market whereas the JPY Unemployment Rate, BOJ Policy Rate and Monetary Policy Statement tomorrow is expected to have greater impact on the gains over JPY in the process.
Now let us look at the technical view. The price has been bearish with straight daily candles pushing the price towards 129.50 area but today the impulsive bullish pressure has already engulfed a portion of previous bearish pressure which if closed above 129.50 with an impulsive bullish candle is expected to inject more bulls in the market resulting further bullish pressure in the market with target towards 132.00 area. As the price remains above 129.50 area, the bullish bias is expected to continue.
SUPPORT: 129.50
RESISTANCE: 132.00
BIAS: BULLISH
MOMENTUM: VOLATILE AND IMPULSIVE
Analysis of Gold for July 30, 2018
2018-07-30
Recently, the Gold has been trading sideways at the price of $1,221.25. Anyway, according to the H1 time – frame, I found breakout of upward trendline and successful re-test after the breakout, which is a sign that sellers are in control. I also found a potential end of the upward correction (ABC flat) in the background, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward target is set at the price of $1,211.25.
Resistance levels:
R1: $1,222.90
R2: $1,224.00
R3: $1,224.70
Support levels:
S1: $1,221.10
S2: $1,220.40
S3: $1,219.30
Trading recommendations for today: watch for potential selling opportunities.
GBP/USD analysis for July 30, 2018
2018-07-30
Recently, the GBP/USD pair has been trading sideways at the price of 1.3108. Anyway, according to the H1 time – frame, I found a potential bearish flag pattern in creation, which is sign that buying looks risky. I also found a breakout of the upward trendline in the background, which is another sign of weakness. My advice is to watch for a potential breakout of the bearish flag to confirm further downward continuation. The downward targets are set at the price of 1.3070 and at the price of 1.2960.
Resistance levels:
R1: 1.3120
R2: 1.3129
R3: 1.3137
Support levels:
S1: 1.3103
S2: 1.3095
S3: 1.3086
Trading recommendations for today: watch for potential selling opportunities.
EUR/USD Approaching Support, Prepare For A Bounce!
2018-07-30
EUR/USD is approaching support at 1.1620 (61.8% Fibonacci extension, 76.4% Fibonacci retracement, horizotnal overlap support) where we expect to see a bounce up to its resistance at 1.1711 (76.4 Fibonacci retracement, horizontal overlap resistance). We do have to be cautious of the intermediate resistance at 1.1663 (38.2% Fibonacci retracement, horizontal overlap resistance). Stochastic (55, 5, 3) is approaching its support at 3% where a corresponding bounce could occur.
EUR/USD is approaching its support where we expect to see a bounce.
Buy entry 1.1620. Stop loss 1.1573. Take profit at 1.1711.
GBP/USD Approaching Support, Prepare For A Bounce!
2018-07-30
GBP/USD is approaching support at 1.3082 (100% Fibonacci extension, 50% Fibonacci retracement, horizontal swing low support) where we expect price to bounce up to its resistance at 1.3213 (61.8% & 76.4% Fibonacci retracement, horizontal overlap resistance).
Stochastic (55, 5, 3) is approaching its support at 3.75% where a corresponding bounce could occur.
GBP/USD is approaching its support where a bounce is expected.
Buy above 1.3082. Stop loss at 1.3010. Take profit at 1.3213.
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