|Day's range||1.005 - 1.006|
|52-week range||0.9934 - 1.0883|
U.S.-China trade relations remain the focus for traders. Things heated up somewhat on Monday when a Chinese official told American Investors at a meeting that Beijing did not “fear” a trade war with Washington.
Adding to the dollar’s weakness was the consolidation of Treasury yields. After yields surged to multi-year highs last week, the rise in yields has subsided, reducing demand for the dollar. Gold improved on Tuesday, but the market posted an inside move, which typically indicates investor indecision and impending volatility. Traders said the gains were related to short-covering. New longs appeared to be scarce since the rally in the equity markets forced them to re-evaluate their reasons for being long. U.S. West Texas Intermediate and international-benchmark Brent crude oil futures settled higher on Tuesday after the American Petroleum Institute reported a surprise crude oil draw.
A Commerce Department report on Monday showed that U.S. retail sales barely rose in September as a rebound in motor vehicle purchases was offset by the biggest drop in spending at restaurants and bars in nearly two years.
In spite of bouncing from the three-week long support-line, USDCHF couldn’t sustain its U-turn and is likely to revisit the 0.9860 rest-point, breaking which 0.9825 & 0.9800 could come back on the chart. Though, the 0.9770 horizontal-line may confine the pair’s declines past-0.9800, if not then 0.9755 & 0.9700 can appear in the sellers radar. In case the quote surpasses 0.9900 immediate resistance, a month old downward slanting TL, at 0.9955, followed by the 0.9985 and the 1.0000 round-figure, might please buyers. Moreover, pair’s successful trading beyond 1. ...
EURUSD broke the lower line of the rectangle and the mid-term up trendline. USDCHF broke the lower line of the wedge and is currently creating an inverse head and shoulders pattern. GBPUSD broke the lower line of the flag and the 23,6% Fibonacci.
A month old descending trend-line, at 0.9685, is likely to challenge the USDCHF’s short-covering moves from 0.9600, if not then the pair’s rise to 0.9710 and the 200-day SMA level of 0.9740 seem imminent. However, the 0.9780-90 area could restrict the pair’s upside past-0.9740, failing to which might propel prices to 0.9850-55 and the 0.9900 resistance-levels. Meanwhile, the 0.9600 and a downward slanting support-line, at 0.9580 now, can limit the quote’s immediate declines. In case the pair refrains to respect 0.9580 mark, the 0.9560, the 0.9520 and the 0. ...
With the failure to provide clear break above immediate TL resistance of 1.1635, not to mention about 1.1650-55 horizontal-region, the EURUSD is likely to witness pullback towards 1.1560 before revisiting the 1.1530-25 support-zone for one more time. In case sellers refrain to respect the 1.1525 rest-point, the 1.1480 and the 1.1430 may mark their presence on the chart whereas 1.1350 and the 1.1300 could entertain them afterwards. Alternatively, pair’s ability to cross the 1.1635 and the 1.1655 resistance can escalate its recovery in direction to the 1.1700 and the 1.1745 levels. ...
Although immediate descending trend-line signals further downside of EURUSD, the 1.1540-30 horizontal-region is likely tough support for the pair to conquer in order to extend its declines towards 1.1490 and the 1.1440 rest-points. Given the quote’s sustained south-run beneath 1.1440, the 1.1390 and the 1.1350 may offer intermediate halts prior to highlighting the 1.1300 round-figure. Alternatively, the 1.1625 TL and the 1.1665 can limit the pair’s near-term advances, breaking which the 1.1740-45 area could gain market attention. Moreover, buyers’ refrain to respect 1. ...
While break of 1.1510-1.1500 dragged the EURUSD to thirteen-month low, the 200-week SMA, at 1.1355 now, is likely offering an intermediate halt to the pair’s south-run towards the 1.1300-1.1280 horizontal-region. In case the quote refrains to respect the 1.1280 rest-point, the 1.1210 and the 1.1120 might entertain the sellers. Alternatively, the 1.1440-50 may restrict the pair’s immediate advances before highlighting the 1.1500-1.1510 support-turned-resistance. Given the buyers’ ability to surpass 1.1510 barrier, the 1.1565-70 and the 1. ...
Notwithstanding the break of six-week long symmetrical triangle support, EURUSD pulled itself back from 1.1530 rest-point to confront the support-turned-resistance, at 1.1615 now. If the pair manage to post a daily closing beyond 1.1615, the 1.1645 and the 50-day SMA level of 1.1670 can try challenging the buyers, failing to which could propel prices towards the descending trend-line figure of 1.1730. In case the pair refrains to surpass the 1.1615 hurdle, the BPC (Break-Pullback-Continuation) pattern may reprint 1.1530 on the chart but the 1.1510-1. ...
Monday starts with a setup that was frequently mentioned by us on our Trading Sniper videos that we post here daily – CHFJPY. What we are having here is a double top pattern, formed on the super important horizontal resistance on the 112.80 (red).
Having reversed from 1.1620, the EURUSD crossed the seven-week-old descending trend-line, around 1.1735-40 now, that favors the pair’s further advances in the direction to the 1.1790 and the 1.1810 resistances. Alike EURUSD, the GBPUSD’s up-moves are likely to be questioned by short-term symmetrical triangle resistance, at 1.3180, breaking which the 1.3215-20 and the 1.3290 may mark their presence on the chart. Bank of Japan’s failure to comply with speculations for its monetary policy tightening activated the USDJPY’s U-turn from two-month long ascending trend-line, which in-turn favors brighter chances of the pair’s recovery to 111.90 and then to the 112.15-20 horizontal-region.
First one is the USDJPY, where we do have an inverse head and shoulders formation and the breakout of the neckline. Broken up trendline was tested as a resistance and price made a shooting star on the daily chart. Now, most probably, we are going to test this area as the closest resistance.
Unless breaking seven-week old ascending trend-line, at 0.9890 now, the USDCHF is less likely to extend its recent pullback towards 0.9850 and the 0.9820 support-levels. Alike USDCHF, the EURCHF’s downside is also capped by the immediate support, herein it is the 1.1595-85 zone, that may trigger the pair’s U-turn towards nearby TL resistance figure of 1.1615. GBPCHF’s recovery from nine-month old ascending trend-line may support the pair to aim for the 1.3125 and the 50-day SMA level of 1.3165 but a downward slanting TL stretched since April can confine its further upside around 1.3210.
Silver started this week with a breakout of the lower line of the wedge, which in theory, gave us a strong sell signal. Buyers try to deny that today and they initiate a reversal, which potentially can create us a right shoulder of the inverse head and shoulders formation. On the weekly chart, we do have a shooting star bouncing from the horizontal resistance.
Should prices manage to defy the triangle pattern by conquering 1.1770 resistance, the 1.1835-40 horizontal-region may gain buyers’ attention. GBPUSD is another major which recently bounced off the support and is currently rising to confront near-term important resistance. Herein, the 1.3090-1.3100 is crucial support whereas two-month old descending trend-line at 1.3310 acts as resistance.
One of the most technical setups can be seen on the USDCHF, where Friday ended with a bearish shooting star pattern. The place, where this pattern is present is not random as it is a long-term horizontal resistance (orange). In the smaller time frames, that shooting star is additionally shaped like the head and shoulders formation, which strengtheners the sell signal.
Correction on the Gold was not the deepest on the record. Price managed to use the weekly hammer for an upswing but it was not spectacular. Yesterday’s candle is a shooting star and price came back below the 1260 USD/oz support and broke the lower line of the wedge. Those signs are bearish.
While receding political pressure at Germany helped the EURUSD witness its latest recovery, short-term symmetrical-triangle is likely to confine the pair’s immediate moves. As a result, the 1.1680 can become adjacent resistance for traders to watch, breaking which the 1.1725 may offer intermediate halt prior to fueling the quote towards two-month old descending TL, at 1.1775. In case if the pair continue rising after 1.1775, the 1.1825 and the 1.1850-55 horizontal-region could entertain the Bulls. On the contrary, the 1. ...
The Trump administration announced it would take a softer stance toward Chinese investment than previously reported. New orders for key U.S.-made capital goods and shipments unexpectedly fell in May, but data for the prior month was revised higher. The Commerce Department also reported that the goods trade deficit declined 3.7 percent to $64.8 billion in May as an increase in exports outpaced a rise in imports. The government department also said wholesale inventories increased 0.5 percent in May and stocks at retailers gained 0.4 percent.
Should the pair drop beneath the 1.1640, the 1.1590 and the 1.1510-1.1500 are crucial levels for traders to watch as break of which can drag prices to 61.8% FE level of 1.1415. Given the pair’s ability to surpass the 1.1845 barrier, chances of its rally to 1.1910 & 1.1940 can’t be denied. In addition to the USDJPY’s inability to offer a daily closing below three-month old ascending trend-line, the 50-day SMA level also seems working as a strong support at present, which in-turn favors the pair’s U-turn in direction to the 109.85 and the 110.30 resistances.
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures closed lower on Tuesday as investors continued to express concerns over a possible increase in OPEC crude supply. Also pressuring prices were the escalating trade dispute between the United States and China.
In case if the pair continue trading southwards after 1.1440, the 1.1370, the 1.1330 and the 1.1300 may please the Bears. Assuming that the pair reverses from current levels, the 1.1650 and the 1.1730 can act as immediate resistances before highlighting the 1.1835-50 area for one more time. Alike EURUSD, the NZDUSD is also near to important support-zone, namely the 0.6885-80, but break of which might not trigger the pair’s plunge as an upward slanting trend-line, at 0.6860 now, could still challenge the sellers.
Break of nearly a month-old descending trend-channel signals the USDCHF’s upside towards 0.9900 and the 0.9930-35, if it manages to sustain the breakout, but the 0.9955-60 horizontal-area might confine the pair’s further recovery. In case the quote successfully clears the 0.9960 barrier, the 1.0000 round-figure and the 1.0055 are likely intermediate hurdles that needs to be surpassed in order to meet the 61.8% FE level of 1.0110. On the contrary, pair’s drop below resistance-turned-support figure of 0.9860 can reprint 0.9830 and the 0.9800 mark before taking rest around the ...