Forex Technical Analysis: Trend potential – Buy USD now

USDJPY – Down

Buy USD now

Technical observation

USD/JPY rose towards the resistance 112.53 and broke above it with a big green candle before correcting to it. I expect a rejection of it at the line followed by a rise towards the resistance 113.16.You can buy this pair now at the line 112.53 with your take profit at 113.16 and stop loss around 112.29.Should there be a clear breakout above 113.16, wait for a correction to it to confirm further bullish momentum of price before you continue long with USD. Short positions may only be advisable in case of a clear breakout below 112.53 with a big red candle followed by a correction to it. Right now buy USD/JPY.

Technical levels

Resistance levels

R1.112.62

R2.112.64

R3. 112.69

Pivot

112.59

Support levels

S1.112.57

S2.112.54

S3.112.49

Trade signal

Buy USD/JPY now with your take profit at 113.16 and stop loss around 112.29.

Do you know against which currencies JPY is the most profitable?

Buy USD now

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Weekly analytics- Forex Technical Analysis: Trend potential – Sell Brent now

Brent weekly

Sell Brent now

Technical observation

For the past two weeks, Brent retraced to the resistance zone 80.61-78.85, it could not penetrate above it and was rejected, currently it is within it and is moving on a bearish bias. I expect a rally towards the support 61.32 followed by possible breach below it for a further decline in Brent towards 44.48.Short Brent now within 80.61-78.85 with your take profit at 61.32 and stop loss slightly above 80.61.Should there be a clear breakout above 80.16-78.85 with a big green candle, wait for a correction to it confirming possible bullish momentum of Brent before you pick long positions towards 103.30.

Trade signal

Short Brent now within 80.61-78.85.

                #NIKKEI weekly

Sell Brent now

Technical observation

After breaking above a resistance zone 22912-22680, #NIKKEI rallied up towards a resistance 24178, it was rejected and so could not penetrate above it. Currently it is pulling back to the just broken zone and I expect a rejection of it at the zone for possible bullish momentum towards 24178 and a possible breakout above it for a further rise. Wait for the correction to 22912-22680 and a rejection within it then pick long positions within it with your ideal target at 24178 and stop loss slightly below 22680.Should there be  a breakout above 24178 with a big green candle, wait for  a correction to it before you continue long.

Trade signal

Wait for a correction to 22912-22680 to buy #NIKKEI.

                   #WTI weekly

Sell Brent now

Technical observation

Light sweet crude oil is trading between the supportive zone 64.18-61.94 and a resistance line 76.80,I expect  arise towards 76.80 and  a possible breakout above it with  a big green candle followed by  a correction it for possible bullish momentum towards 93.12.In case there is  a rejection at 76.80,wait for the correction to 64.18-61.94 then re-buy #WTI within it with your take profit still at 76.80 and stop loss slightly below 61.94.Should there be  a breakout above the resistance line 76.80,wait for  a correction to it to confirm bullish momentum then pick long positions at it with your take profit at 93.12.

Trade signal

Wait for a breakout above 76.80.

Do you know against which currencies CFD is the most profitable?

Sell Brent now

More trading assets here…

Yen at two-month low versus dollar on Wall Street surge

USD/JPY at highest since July

USD/JPY rallied to its highest level since July 19 as the positive sentiment that lifted Wall Street to record highs continued in the currency markets during the Asian session. The response in Asian equities was not quite so dramatic with the Japan 225 index gaining 0.25% by lunchtime, the Hong Kong 33 CFD rising 0.25% and the China A50 index surging 1.32%%.

Japan shares shrugged off an uptick in longer-term yen yields after the Bank of Japan trimmed its daily purchases of Japanese Government Bonds with a tenor of 25 years and upwards. The 30-year yield hit its highest since October 2017 and the 40-year tenor saw rates at 1.02%, the highest since November 2017.

 

USD/JPY Weekly Chart

Source: Oanda fxTrade

 

USD/JPY is poised for its second weekly gain in a row and is heading toward the 200-week moving average at 113.26 while the July high sits at 113.18.

 

Japan CPI heads in the right direction

A welcome headline for the Bank of Japan saw Japanese consumer prices rise 1.3% year-on-year in August, the fastest pace since February. The headline topped expectations of a 1.1% increase and was a steep acceleration from the 0.9% seen in July. Core CPI was a more benign +0.4% y/y, in line with expectations and higher than July’s 0.3%.

In other Japanese news, Shinzo Abe was elected for his third term as leader of the LDP yesterday and is set to become the country’s longest-serving leader. He wasted no time in getting back down to business as Chief Cabinet Secretary Suga announced that PM Abe will hold a summit with US President Trump on September 26. There is no doubt that the tariff question will be the major topic under discussion.

US-China trade war, yesterday’s news?

S&P Raises Australia outlook to stable

Ratings agency S&P affirmed Australia’s sovereign rating at AAA and raised the outlook from negative to stable. The agency cited an improved fiscal outlook amid government expenditure restraint, with steady revenues supported by the strong labor market and relatively robust commodity prices. The top three ratings agencies now have Australia with a AAA rating and a stable outlook.

There was a muted response to the news from the Aussie as AUD/USD marked time ahead of the 55-day moving average resistance at 0.7315. The pair is currently almost flat on the day having risen for the past four sessions and is facing its strongest up-week in over a year. AUD/USD is now at 0.72935.

 

AUD/USD Daily Chart

Source: Oanda fxTrade

 

More PMI readings complete a slow data week

The slow data week concludes with September Markit PMI readings for both Germany and the Euro-zone, with both expected to show a lower reading than last month. The North American calendar is focused on Canada’s CPI readings for August followed by the Markit PMI data for the US. In contrast to the European readings, those are expected to rise and confirm the robust state of the US economy and could help fuel further gains on Wall Street.

 

You can view the full MarketPulse data calendar at: https://www.marketpulse.com/economic-events/

 

Have a great weekend.

Forex Technical Analysis: Trend potential – Re-buy within 1.3056-1.3025

GBPUSD – Flat

Technical observation

GBP/USD is still above the supportive zone 1.3056-1.3025 and is rising towards the resistance line 1.3319,I expect a correction to 1.3056-1.3025 followed by rejection within it to re-sell buy GBP towards 1.3319,or a breakout above 1.3319 followed by a correction to it for possible bullish momentum towards 1.3588 or even higher to 1.3999.Only long positions look ideal on the daily chart above and can be recommended within the zone 1.3056-1.3025 towards 1.3319.Short positions can only be advisable below 1.3056-1.3025,should there be a breakout below it with a big red candle followed by a retracement to it.

Technical levels

Resistance levels

R1.1.3124

R2.1.3178

R3.1.3266

Pivot

1.315

Support levels

S1.1.3036

S2.1.3002

S3.1.2915

Trade signal

Wait for a correction to 1.3056-1.3025 to re-buy GBP/USD.

Do you know against which currencies GBP is the most profitable?

More trading assets here…

You may check other analytical reviews on FreshForex website. Source: freshforex.com.

Kiwi jumps on strongest growth in two years

Kiwi higher as Q2 growth beats forecasts

New Zealand recorded its best quarter-on-quarter growth in Q2 as the economy expanded 1.0%, a faster pace than the 0.8% growth economists had expected. On an annual basis, growth was also higher than expected, rising 2.8% y/y, topping estimates of a 2.5% increase. New Zealand’s Statistics Agency reported that growth was broad-based with mining the only industry to decline. The largest contribution to growth was agriculture, which rose 4.2%.

The kiwi popped higher in a knee-jerk reaction to the data, with NZD/USD rising to its highest level this month. The 55-day moving average is at 0.6687 and NZD/USD has traded below this average since April 19.

 

NZD/USD Daily Chart

Source: Oanda fxTrade

 

NAFTA talks slow

It is looking increasingly less likely that any agreement on renewing the NAFTA this week with talks reportedly stalled and going nowhere. Canadian PM Trudeau said yesterday there would need to be a bit more flexibility from the US if the two sides are to reach a deal by the end of the month.

The Canadian dollar has been rising for the past two days, though more likely due to weakness in the US dollar rather than strength in the Canadian one. USD/CAD is currently trading at 1.2918, above the 200-day moving average at 1.2866. USD/CAD has traded above this moving average since April 19.

 There are $1.1 billion worth of USD/CAD options expiring today at strike 1.30

 

USD/CAD Daily Chart

Source: Oanda fxTrade

 

 

EU leaders summit to produce more Brexit headlines?

EU leaders begin a summit in Austria today with an increasing risk that more Brexit-linked headlines will be released. The latest news was that UK’s May had rejected the EU’s improved proposal on the Irish border and the pound suffered as a result.

Other data points include UK retail sales for August which are expected to show negative month-on-month growth again after a positive July.  The US releases weekly jobless claims and the September reading for the Philadelphia Fed manufacturing index together with August’s existing home sales.

 

You can view the full MarketPulse data calendar at https://www.marketpulse.com/economic-events/

 

Tariffs? – So what!

China responded to the latest US tariffs with tariffs of their own of between 5-10% on $60 billion worth of American imports. Looking at markets, you’d think nothing had happened!

 

Dow at eight-month high

After an early wobble, the index powered 0.7% higher to close at its highest level since January, helped by gains in some counters that had been previously negatively affected by earlier tariffs. The S&P500 failed to hit a new record high above last month’s peak while the Nasdaq held a healthy bounce of the 55-day moving average. The US dollar, measured against a basket of six currencies, rose 0.15% as US 10-year yields climbed to their highest since May.

 

 

Across Asian equity markets, sentiment was not quite so bullish, though most indices did trade in the black. The Nikkei edged a 0.03% gain while China shares rose 0.77% while the Hang Seng gained 0.68% by lunchtime. The US dollar maintained its bid bias with USD/JPY hitting its highest in two months as US yields held their higher levels.

 

S&P sees greater impact for US

On the latest tariffs, ratings agency S&P commented that it saw that the aggregate impact of both tariff and confidence effects would be more pronounced on the US economy than China’s. A full-blown trade war, with tariffs of 25% on all non-fuel goods, is seen shaving 1.2% off the US’ GDP over 2019-2021 with the loss for China about 1%. Their major concern is that China may start responding with non-tariff actions, once tariff possibilities are exhausted.

Possibly in a hint of things to come, recent data released by the US Treasury Department showed that China’s holdings of US Treasuries fell to a six-month low of $1.17 trillion in July, down from $1.18 trillion in June. While some say the selling may have been to fund USD/yuan sales to support the local currency, others fear it may be a partly in response to the US imposing tariffs on Chinese goods.

China Holdings of US Treasuries

Source: US Treasury Department; Oanda

 

 

Bank of Japan: No talk, no action

The Bank of Japan left its benchmark interest rate unchanged at 0.10%, as expected. It also maintained its 10-year JGB yield curve control at about 0%, also as had been expected. The vote on yield curve control was 7-2, with members Harada and Kataoka dissenting. The central bank also maintained its annual pace of JGB holdings at 80 trillion yen and annual ETF purchases at six trillion yen. Given the non-event style of the decision, USD/JPY barely moved afterwards, stuck at 112.36 and holding close to its two-month high.

 

 

Pound lifted by May’s Brexit chatter

On the eve of an EU summit in Austria, UK PM Theresa May spoke with the UK’s Express newspaper saying the withdrawal agreement is virtually agreed and would be the right plan for the UK and deliver a good deal for the EU. She also warned that calls for a second referendum risks shattering trust in the government. Talking about the rumored plot against her leadership from within her own party, she insisted she plans to stay in Downing Street to deliver a program to transform Britain long after next year’s Brexit deadline.

 

GBP/USD Daily Chart

Source: Oanda fxTrade

 

GBP/USD touched an eight-week high of 1.3176 early in today’s session and is testing the 100-day moving average at 1.3165. The pair has not closed above this moving average since April 26. GBP/USD is currently sitting at 1.3155.

 

UK prices in the spotlight

We get to see the whole range of UK price indices for August today. Producer output prices are expected to rise 0.2% from July, while consumer prices are seen jumping more, with a 0.5% increase over the previous month. Retail prices are also expected to rise from July, with a 0.6% gain forecast. Euro-zone construction output for July completes the European session. The only US data today are housing starts and building permits for August, along with the Q2 current account balance. That is expected to show an improvement in the deficit to $103.5 billion from $124.1 billion. The day is rounded off with a late speech by ECB’s Draghi.

 

The full MarketPulse data calendar can be viewed at https://www.marketpulse.com/economic-events/

 

Source: MarketPulse

Live FX analysis – 18 September 2018 (Video)

Senior Market Analyst Craig Erlam discusses the key market themes from the summer – most notably US tariffs and Brexit – and the events to watch out for this week.

Craig also gives his live analysis on EURUSD (17:48), GBPUSD (21:36), EURGBP (24:42), AUDUSD (25:44), USDCAD (28:33), GBPCAD (31:02), NZDUSD (32:41), USDJPY (34:16), GBPJPY (35:25) and EURJPY (36:31).

Technical crypto analysis based on breakout – Wait for a correction to 0.28365-0.28041

XRP –

Wait for a correction to 0.28365-0.28041

Technical observation

Ripple has been trading on a bearish bias with several retracements at the resistance zone 0.28365-0.28041.Recently there was a correction to it and price could not penetrate above it and so was rejected before rallying down. I expect another pullback to the zone followed by a rejection within it for possible bearish momentum towards 0.25249.In case of a breakout below 0.25249, wait for a correction to it confirming further bearish movements of price before you continue short with Ripple. Right now wait for the correction to 0.28365-0.28041 to re-sell Ripple towards the key support line 0.25249 even further below.

Trade signal

Wait for a correction to 0.28365-0.28041 to re-sell Ripple.

101% Double the volume

!Attention!
All bonus participates in drawdown!

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Technical crypto analysis based on breakout – Wait for breakout below 6135.92.

BTC –

Wait for breakout below 6135.92.

Technical observation

BTC pulled back to the resistance zone 6566.96-6533.44, price could not penetrate above it and was rejected before rallying steadily towards 6135.92, I expect a breakout below it with a big green candle followed by a correction to it for possible further decline in price, or a pullback to the above mentioned zone, followed by a rejection within it to re-sell BTC. Wait for the breakout below 6135.92 and a correction to it to sell BTC. In case there’s no breach below 6135.92 and instead there’s a pullback to 6566.96-6533.44, wait for the rejection of price to resell BTC within it with your ideal target still at 6135.92.

Trade signal

Wait for breakout below 6135.92.

101% Double the volume

!Attention!
All bonus participates in drawdown!

You may check other analytical reviews on FreshForex website. Source: freshforex.com.

Forex Technical Analysis: Trend potential – Buy within 1.3056-1.3025

GBPUSD – Flat

Buy within 1.3056-1.3025

Technical observation

GBP/USD went up as predicted, I expect a correction of price to 1.3056-1.3025 and a rejection of it within the zone for possible upwards movement of price towards 1.3119 and a possible breakout above it for a further rise in price towards 1.3999.wait for the correction to 1.3056-1.3025 then buy GBP/USD within it with your take profit at 1.3119 and stop loss slightly below 1.3025.in case of breakout above 1.3119,wait for correction to it to confirm further bullish momentum of GBP before you continue long with this pair. Only long positions look ideal on the daily chart above an d can be recommended within 1.3056-1.3025.

Technical levels

Resistance levels

R1.1.3124

R2.1.3178

R3.1.3266

Pivot

1.311

Support levels

S1.1.3036

S2.1.3002

S3.1.2915

Trade signal

Buy GBP/USD within 1.3056-1.3025 towards 1.3119.

Do you know against which currencies GBP is the most profitable?

Buy within 1.3056-1.3025

More trading assets here…

You may check other analytical reviews on FreshForex website. Source: freshforex.com.