2018-07-10
Gold price pulled back yesterday and closed below $1,260. This is not a bullish sign but at least for bulls price is still above $1,250 which is the critical short-term support level. Gold bulls want to see more higher highs and higher lows for the precious metal and a break above $1,265 for the big test of the resistance and first target of $1,272.
Black line - support
Blue line - resistance
Red line - first target
Gold price has pushed back below the break out area of $1,260. This could be a false break out. Bulls need to retake this level soon otherwise we could see a push to new lows towards $1,220 over the coming weeks. A weekly close above $1,265 would be a great sign for bulls. On the other hand bears want to see $1,250 broken.
GBP/USD analysis for July 10, 2018
2018-07-10
Recently, GBP/USD has been trading downwards. The price tested the level of 1.3179. According to the H1 time - frame, I found a broken upward trendline in the background and potential completed flat upward correction (abc flat), which is a sign that buying looks very risky. My advice is to watch for potential selling opportuntiies if you see a valid breakout of intraday bearish flag pattern. The downward targets are set at the price of 1.3190 and at the price of 1.3050.
Resistance levels: R1: 1.3345 R2: 1.3435 R3: 1.3510
Support levels: S1: 1.3180 S2: 1.3107 S3: 1.3017
Trading recommendations for today: watch for potential selling opportunities.
Analysis of Gold for July 10, 2018
2018-07-10
Recently, Gold has been trading downwards. The price tested the level of $1,253.00. According to the H1 time - frame, I found a potential completion of downward correction (abc flat), which is a sign that selling at this stage looks risky. I also found a hidden bullish divergence in the background, which is another sign of strength. My advice is to watch for a potential breakout of the supply trendline to confirm a further upward direction. The upward target is set at the price of $1,264.90.
Resistance levels: R1: $1,265.20R2: $1,271.50R3: $1,275.40
Support levels: S1: $1,254.60S2: $1,250.20S3: $1,244.40
Trading recommendations for today: watch for potential buying opportunities.
Fundamental Analysis of USD/JPY for July 10, 2018
2018-07-10
USD/JPY has been quite corrective and volatile at the edge of 110.50 area earlier, which is currently quite impulsive with the bullish momentum recently heading quite quickly towards 112.00 area. Though JPY has been quite positive with the recent economic reports but it failed to sustain the momentum to gain further against USD in the process.
Today JPY M2 Money Stock report was published unchanged as expected at 3.2% and Prelim Machine Tools Orders decreased to 11.4% from the previous value of 14.9%. The mixed economic report did prove as a setback for the JPY but without any high impact economic report on the USD side, current gain is completely assumed to be based on the JPY weakness.
On the USD side, after the recent NFP Economic report published with dovish results last week, USD has been quite weak recently. Today USD NFIB Small Business Index report is going to be published which is expected to decrease to 105.6 from the previous figure of 107.8 and JOLTS Job Opening report is going to be published with an increase to 6.88M from the previous figure of 6.70M.
As of the current scenario, despite having any high impact economic reports to be published this week USD has already gained a good amount of momentum against JPY which is expected to continue further until JPY comes up with better than expected economic results in a consistent basis.
Now let us look at the technical view. The price is currently quite impulsive with the bullish gains after being bounced off the 110.50 area with a daily close. Despite the recent deeper pullbacks, the trend has been bullish and expected to push the price higher towards 112.00 area in the coming days. As the price remains above 110.50 with a daily close, the bullish bias is expected to continue further.
Technical analysis of EUR/USD for July 10, 2018
2018-07-10
Overview:The EUR/USD pair continues to move downwards from the level of 1.1785. Yesterday, the pair dropped from the level of 1.1785 to the bottom around 1.1705. Today, the first support level is seen at 1.1694, the price is moving in a bearish channel now. Furthermore, the price has been set below the strong resistance at the level of 1.1752, which coincides with the 50% Fibonacci retracement level. This resistance has been rejected several times confirming the veracity of a downtrend. Additionally, the RSI starts signaling a downward trend. As a result, if the EUR/USD pair is able to break out the first support at 1.1694, the market will decline further to 1.1623 in order to test the weekly support 2. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 1.1752 with the first target at 1.1663 and further to 1.1566. However, stop loss is to be placed above the level of 1.1810.
Technical analysis of USD/CAD for July 10, 2018
2018-07-10
Overview:The pivot point is seen at the point of 1.3190 on the H1 chart. The USD/CAD pair continues to move downwards from the level of 1.3190, which represents the double top on the H1 chart. Last week, the pair dropped from the level of 1.3190 to the bottom around 1.3130. Today, the first resistance level is seen at 1.3227 followed by 1.3190, while daily support is seen at the levels of 1.3130 and 1.3093. According to the previous events, the USD/CAD pair is still trapping between the levels of 1.3227 and 1.3093. Thus, we expect a range of 137 pips in coming hours. The first resistance stands at 1.3227, for that if the USD/CAD pair fails to break through the resistance level of 1.3227, the market will decline further to 1.3130. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.3093 in order to test the second support (1.3093). On the contrary, if a breakout takes place at the resistance level of 1.3257 (50% Fibonacci retracement levels), then this scenario may become invalidated.
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