Analysis of Gold for February 04, 2019

Analysis of Gold for February 04, 2019

2019-02-04

Buying climax in the background on Gold evolved into larger weakness as I expected. The price tested the level of $1.310.00. We found a confirmed head and shoulders pattern, which is another strong sign of weakness. The key short-term resistance remains at $1.323.00. As long as this resistance is holding, you should watch for selling opportunities. The short-term support is set at the price of $1.308.00 and the breakout of the support would confirm a potential test of $1.297.75.

R1: $1.323.00

R2: $1.324.55

R3: $1.325.60

Pivot: $1.322.80

S1: $1.320.75

S2: $1.319.80

S3: $1.318.35

Trading recommendation: We are short on Gold from $1.311.00 and protective stop at $1.322.00. First objective target is set at the price of $1.297.75.

GBP/USD analysis for February 04, 2019

2019-02-04

The GBP/USD pair made a successful change in trend behavior from bullish to bearish. The key resistance at 1.3215 held successfully and the sellers started the distribution process. Short-term trend remains bearish.

Blue lines - bearish channel

GBP/USD is in a bearish trend making lower highs and lower lows. Price is below the Ichimoku cloud and both the tenkan- and kijun-sen indicators. Short-term support is at 1.3042. As long as we trade below the Ichimoku cloud on the H1 time – frame, the trend remains bearish.

Trading recommendation: We are short GBP/USD from 1.3052 and with the protective stop at 1.3115. The downward target is set at the price of 1.2970.

Technical analysis of USD/CHF for February 04, 2019

2019-02-04

Overview:

The USD/CHF pair faced resistance at the level of 1.0031, while minor resistance is seen at 0.9987. Support is found at the levels of 0.9884 and 0.9819. Also, it should be noted that a daily pivot point has already set at the level of 0.9939. Equally important, the USD/CHF pair is still moving around the key level at 0.9939, which represents a daily pivot in the H1 time frame at the moment. Yesterday, the USD/CHF pair continued to move upwards from the level of 0.9939. The pair rose from the level of 0.9939(this level of 0.9939 coincides with the double bottom) to the top around 0.9987. In consequence, the USD/CHF pair broke resistance, which turned strong support at the level of 0.9884. The level of 0.9884 is expected to act as major support today. From this point, we expect the USD/CHF pair to continue moving in the bullish trend from the support level of 0.9884 towards the target level of 0.9987. If the pair succeeds in passing through the level of 0.9987, the market will indicate the bullish opportunity above the level of 0.9987 in order to reach the second target at 1.0031. On other hand, if a breakout happens at the support level of 0.9819, then this scenario may be invalidated.

Technical analysis of EUR/USD for February 04, 2019

2019-02-04

Overview: The EUR/USD pair above around the weekly pivot point (1.1393). It continued to move downwards from the level of 1.1393 to the bottom around 1.1335. Today, the first resistance level is seen at 1.1393 followed by 1.1426, while daily support 1 is seen at 1.1335. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 1.1393. So it will be good to sell at 1.1393 with the first target of 1.1335. It will also call for a downtrend in order to continue towards 1.1294. The strong daily support is seen at the 1.1254 level. According to the previous events, we expect the EUR/USD pair to trade between 1.1393 and 1.1254 in coming hours. The price area of 1.1393 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 1.1393 is not broken. On the contrary, in case a reversal takes place and the EUR/USD pair breaks through the resistance level of 1.1393, then a stop loss should be placed at 1.1453.