2018-07-20
USD/CAD has been quite impulsive amid bullish pressure under the corrective upward momentum. The price is expected to climb higher towards 1.34 before showing any further bearish pressure in the pair.
Today, a series of macroconomic reports are due in Canada. Exepectations are going to inject extra volatility in the market. Today, Canada's CPI report is going to be published which is expected to be unchanged at 0.1%, Core Retail Sales report is expected to increase to 0.6% from the previous value of -0.1%, Common CPI, Trimmed CPI and Median CPI was previously at 1.9% which might see a certain rise today, and Retail Sales report is expected to increase to 1.0% from the previous negative value of -1.2%.
On the other hand, today the economic calendar does not contain economic data or events from the US which might impact the market semtiment on USD. However, some the US presented upbeat data recently. Unemployment Claims to decreased by 207k from the previous figure of 215k and Philly FED Manufacturing Index rose to 25.7 from the previous figure of 19.9. Ahead of the flash GDP report to be published next week, USD could not sustain the momentum.
At present, the market has positive expectations for Canada's macroeconomic data. This may lead to certain gain on the CAD side. Nevertheless, USD still has the upper hand over CAD ahead of the impactful news today. Though CAD could put pressure on USD birefly, USD is expected to regain its momentum quickly in the coming days, leading the price towards 1.34 resistance area.
Now let us look at the technical view. The price is currently quite bearish after yesterday's impulsive bullish momentum, which might lead to certain bearish pressure towards the dynamic level of 20 EMA before pushing higher towards 1.34 area in the future. Though the bullish trend is still in play, but 1.34 was quite successful earlier to push the price lower which might do it again in the coming days as the price rejects off the 1.34 area with a daily close and bearish pressure. As the price remains above 1.3050 area, the bullish bias is expected to continue further in this pair.
RESISTANCE: 1.3400
SUPPORT: 1.3050
BIAS: BULLISH
MOMENTUM: VOLATILE
EUR/USD analysis for July 20, 2018
2018-07-20
Recently, EUR/USD has been trading upwards. As I expected, the price tested the level of 1.1678. Acording to the H1 time - frame, I found rejection from the support trendline in the background, which is a sign that selling looks risky. I also found a potential end of the downward correction (abc flat) and hidden bullish divergence on the MACD oscillator in the background. My advice is to watch for potential buying opportunities. The upward target is set at the price of 1.1740.
Resistance levels: R1: 1.1697R2: 1.1740 R3: 1.1800 Support levels: S1: 1.1594S2: 1.1533 S3: 1.1490
Trading recommendations for today: watch for potential buying opportunities.
USD/JPY analysis for July 20, 2018
2018-07-20
Recently, USD/JPY has been trading downwards. The price tested the level of 112.05. Anyway, acording to the H1 time - frame, I found a potential upward correction in progress (abc flat). My advice is to watch for potential downward opportunities. The strong resistance is found at the price of 112.65. The downward target is set at the price of 112.06.
Resistance levels: R1: 113.00R2: 113.60 R3: 114.00
Support levels: S1: 111.90S2: 111.47S3: 100.85
Trading recommendations for today: watch for potential selling opportunities.
Technical analysis of USD/CAD for July 20, 2018
2018-07-20
Overview:The pivot point is seen at the price of 1.3247, for that the trend is still trade around it since yesterday. The USD/CAD pair will probably continue to rise from the level of 1.3139. It should be noted that the support is established at the level of 1.3139 which represents the 61.8% Fibonacci retracement level on the H4 chart. The price is likely to form a double bottom in the same time frame. Accordingly, the USD/CAD pair is showing signs of strength following a breakout of the highest level of 1.3247. So, buy above the level of 1.3247 with the first target at 1.3309 in order to test the daily resistance 1 and further to 1.3385. Also, it might be noted that the level of 1.3385 is a good place to take profit because it will form a double top. On the other hand, in case a reversal takes place and the USD/CAD pair breaks through the support level of 1.3064, a further decline to 1.2990 can occur which would indicate a bearish market.
Technical analysis of NZD/USD for July 20, 2018
2018-07-20
The NZD/USD pair continues to move downwards from the level of 0.6807. The pair has dropped from the level of 0.6807 to trade around the 0.6775 level. This level of 0.6807 coincides with the major resistance today. Today, the first resistance level is seen at 0.6807 followed by 0.6880, while daily support 1 is found at 0.6742. Also, the level of 0.6775 represents a key price today for that it is acting as major resistance/support this week. Amid the previous events, the pair is still in a downtrend, because the NZD/USD pair is trading in a bearish trend from the new resistance line of 0.6807 towards the first support level at 0.6742 in order to test it. If the pair succeeds to pass through the level of 0.6742, the market will indicate a bearish opportunity below the level of 0.6742. Then, resell again at the price of 0.6742 with the targets of 0.6716 and 0.6697. On the other hand, if a breakout happens at the resistance level of 0.6840, then this scenario may be invalidated.NZD/USD Intraday technical levels and trading recommendations for July 20, 2018
2018-07-20
The NZD/USD pair had been trapped between the price levels of 0.7170 and 0.7350 until bearish breakdown of 0.7200 occurred on April 23.
Breakdown of 0.7220-0.7170 (neckline zone) was needed to confirm the depicted reversal pattern. Bearish target levels around 0.7050 and 0.7000 have been achieved already.
The price level of 0.7050 was considered a key-level for the NZD/USD bears That's why, bearish persistence below 0.7050 allowed further bearish decline to occur towards the price levels around 0.6800.
As anticipated, the recent bullish pullback towards the price level of 0.7050 (Broken Demand-Level) offered a good opportunity for a valid SELL entry.
A quick decline took place towards 0.6800 where a false bearish breakdown occurred. This allowed temporary bearish movement to occur towards 0.6680. However, the pair failed to maintain enough bearish momentum.
On July 7, evident bullish rejection pushed the NZD/USD pair above 0.6820 again. This was followed by a recent bullish reversal pattern (123 pattern) which enhances the bullish side of the market.
Currently, recent signs of bullish weakness are being manifested on the chart. The bulls are failing to maintain enough bullish momentum above 0.6820 which may endanger the bullish reversal scenario.
Trade Recommendations:
The price zone 0.6750-0.6800 still constitutes a demand zone to be considered for a valid BUY entry.
Bullish fixation above 0.6820 is needed to provide enough bullish momentum towards 0.6900-0.6980.
Please be cautious if the current bearish decline extends below 0.6680 as this invalidates the suggested bullish reversal pattern.
Intraday technical levels and trading recommendations for EUR/USD for July 20, 2018
2018-07-20
Daily Outlook
In April 2018, the EUR/USD pair outlook turned to become bearish when the pair pursued trading below the broken uptrend as well as the lower limit of the depicted consolidation range.
Shortly after, the price zone (1.1850-1.1750) offered temporary bullish rejection towards 1.1990. The EUR/USD bulls failed to pursue towards higher bullish targets. Instead, a descending high was established around 1.1990.
This was followed by bearish breakdown below the price zone of 1.1850-1.1750. This price zone has been standing as a significant Supply zone since June 2018.
On the other hand, the price zone of 1.1520-1.1420 was considered a prominent demand zone where a valid bullish BUY entry was offered during previous weeks' consolidations.
On July 10, signs of bearish rejection were manifested around 1.1750. That's why, a bearish movement was expected to occur towards 1.1650.
Lack of enough bearish momentum allowed another bullish pullback to occur towards 1.1750 (the lower limit of the depicted supply zone) where bearish pressure was expressed on Tuesday.
That's why, the EUR/USD pair remains trapped inside the consolidation range between the depicted key-levels 1.1520 and 1.1750 until breakout occurs in either direction.
Please note that any bullish breakout above 1.1750 will probably liberate a quick bullish movement towards 1.1850 (the upper limit of the depicted supply zone).
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