2018-07-18
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.
Quick bearish 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.
Recent signs of bullish weakness are being manifested on the chart. The bulls are failing to maintain trading above 0.6820 which endangers 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 should be maintained to provide enough bullish momentum towards 0.6900-0.6980.
Please be cautious if bearish decline extends below 0.6680 as this invalidates the suggested bullish scenario.
Intraday technical levels and trading recommendations for EUR/USD for July 18, 2018
2018-07-18
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).
The EUR/USD pair remains trapped inside a 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 enhance bullish advancement towards 1.1850 (the upper limit of the depicted supply zone).
GBP/USD analysis for July 18, 2018
2018-07-18
Recently, GBP/USD has been trading downwards. The price tested the level of 1.3009. According to the H1 time - frame, I found strong supply on the market. My advice is to watch for selling opportunities on the rallies. Watch for a potential bearish flag before you sell. The projected downward targets are set at the price of 1.2950 and at the price of 1.2900.
Resistance levels: R1: 1.3226R2: 1.3347 R3: 1.3425
Support levels: S1: 1.3027 S2: 1.2950 S3: 1.2828
Trading recommendations for today: watch for potential selling opportunities.
USD/CAD analysis for July 18, 2018
2018-07-18
Recently, USD/CAD has been trading upwards. The price tested the level of 1.3250. According to the H4 time - frame, I found a potential end of the bearish corrctive phase (flat abc), which is a sign that selling looks risky. MACD oscillator is rising and that is another sign of strength. My advice is to watch for potential buying opportunities. The upward target is set at the price of 1.3370.
Resistance levels: R1: 1.3244R2: 1.3285 R3: 1.3351
Support levels: S1: 1.3137 S2: 1.3070 S3: 1.3030
Trading recommendations for today: watch for potential buying opportunities.
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