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GBP/USD: outlook for August 8-14

8/5/2016

 

The Bank of England eased monetary policy in order to reduce uncertainty caused by Brexit. The regulator cut the benchmark interest rate from 0.5% to 0.25% and expanded bond buying by 60 billion pounds of government bonds and 10 billion pounds of corporate bonds. The BoE also set up a new funding scheme for lenders.

 

This easing package has exceeded the market’s expectations. Note that Governor Carney said that further interest rate cuts are possible, though underlined that the rates will remain above 0. Still, given solid US labor market figures British pound will likely remain under negative pressure versus the US dollar.

 

GBP/USD fell below 1.3100. The pair breached down the triangle and the next levels to watch on the downside are 1.3000, 1.2950 and 1.2840. Resistance is at 1.3100 and 1.3210.

 

As for British economic calendar, important pieces of data are due on Tuesday: don’t miss the releases of manufacturing production and goods trade balance.

 

GBPUSDDaily(8).png

 

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USD/JPY: outlook for August 8-14

8/5/2016

 

USD/JPY tested lower levels as it slid to support at 100.70.

 

Japanese cabinet approved 13.5 trillion yen ($132.04 billion) in fiscal measures on Tuesday to revive the nation’s economy. There was no significant impact on the market from the decision as the news about this stimulus package were out a week before. Although the regulator announced plans to review stimulus program in September, traders fear that the Bank of Japan has run out of monetary policy tools.

 

Good nonfarm July payrolls provided a positive driver for USD/JPY. However, the overall downtrend is still in place, and we believe that recovery represents nothing more but correction. Resistance lies at 102.50 and 103.60. Break below 100.70 will open the way down to 100.00.

 

Japan will release current account figures on Monday and core machinery orders together with tertiary industry activity figures on Wednesday. Rapidly expanding current account surplus is a source of negative pressure on USD/JPY. Also pay attention to statistics from China that will have an impact on the market’s risk sentiment: the nation will release trade balance on Monday, inflation on Tuesday and industrial production on Friday.

 

USDJPYDaily(7).png

 

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AUD/USD: outlook for August 8-14

8/5/2016

 

Although economic news from Australia weren’t very exciting, Australian dollar manage to hold ground against its US counterpart.

 

Australian economic figures disappointed: building approvals kept contracting, trade deficit widened, while retail sales growth was weaker than expected. The Reserve Bank of Australia cut the cash rate from 1.75% to 1.5%. However, this decision was already priced in by the market, and AUD/USD rebounded from 100-day MA and the top of the daily Ichimoku Cloud in the 0.7485 area and made an attempt to overcome 2016 resistance line.

 

However, strong US nonfarm payrolls brought AUD/USD lower. A weekly close below 0.7635 will open the way for decline to 0.7580 and 0.7550. Further support is at 0.7490.

 

As for the economic calendar, NAB business confidence will be released on Tuesday. On Wednesday we’ll hear from the RBA Governor Stevens. Australian central bank doesn’t like stronger national currency, so if the RBA voices its concerns Aussie bears will finally take the situation in their hands. Also watch China’s economic statistics as it will affect the market’s risk sentiment and, consequently, AUD/USD.

 

 

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USD/CAD & Building Permits: On it's way to reach the 1.3350 level?

8/8/2016

 

Today at 12:30 GMT will be released the building permits in Canada and analysts are expecting a rise from -1.9% to 2.7%, but that indicator should have a medium-impact on the CAD pairs. Latest releases had been showing declines and giving hints that constructions in Canada hadn't performed well. However, with a positive number we should see that Canadian dollar attempts a rally against other currencies during this week.

 

The technical picture for USD/CAD at H4 chart is still very bullish following the US NFP's positive numbers. The greenback's strength should push higher the pair towards the 1.3387 level, where a pullback should happen. This bullish scenario remains alive, as the Loonie has been following a bullish trend line since June 22 session. However, if numbers in Canada today are positive, then a pullback to the 1.3100 psychological level is possible.

 

USDCADH4(5).png

 

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EUR/USD won't give up without a fight

8/8/2016

 

On the daily EUR/USD chart bears failed to settle below support at 1.1072 (23.8% Fibo of the last descending wave). If the pair recoils from the upper border of the trend channel and returns to 1.1175, it will be a signal that the bulls have seized the initiative. On the other hand, sustainable break above 1.1072 will increase the risk that the long-term downtrend resumes.

 

Screenshot_2016_08_08_07_51_45.png

 

On H1 EUR/USD failed to break the lower border of the downtrend at the level of 88.6% "Shark" pattern's target (convergence area). In order for the bears to show their power, the pair should successfully test 1.1082 and 1.1051. The nearest resistance levels are at 1.1114 and 1.1170.

 

Screenshot_2016_08_08_07_52_05.png

 

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AUD/USD: will bears find strength to attack?

8/8/2016

 

On the daily AUD/USD chart the pair is moving within uptrend channel. The market's sentiment will remain bullish as long as the pair's trading above support at 0.7570 (61.8% Fibo of the last descending wave).

 

Screenshot_2016_08_08_07_52_23.png

 

On H1 AUD/USD is trading near 78.6% Fibo of the last descending wave. If the bears manage to hold the quotes below resistance in the 0.7622-0.7627 area, then further decline to the 0.757-0.7579 convergence area (lower border of an uptrend+61,8% Fibo of the last bearish wave + daily support) will activate the "Shark" pattern. Its 88.6% is near 0.75.

 

Screenshot_2016_08_08_07_52_44.png

 

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Key option levels for Monday, August 8th

8/8/2016

 

EUR/USD

 

EURUSD(9).png

 

 

Main trend Short-term period Medium-term period

Bearish Bearish

Changes in the open interest - 75 397 ? + 112 764 ?

Closest resistance levels 1.1152(65?); 1.1182; 1.1203; 1.1229

Closest support levels 1.1078; 1.1050; 1.1031; 1.1006

Trading recommendations

Baseline scenario Sell EUR/USD below 1.1078, with target points at 1.1050 and 1.1031

Alternative scenario Moving above 1.1152 can be considered as a signal to buy the pair, with target at 1.1182 and 1.1203

 

 

GBP/USD

 

GBPUSD(7).png

 

 

Main trend Short-term period Medium-term period

Bearish Bearish

Changes in the open interest - 27 569 ? - 26 075 ?

Closest resistance levels 1.3200; 1.3242; 1.3268; 1.3297

Closest support levels 1.3066/51; 1.3011; 1.2972; 1.2948

Trading recommendations

Baseline scenario Short GBP/USD below 1.3066, with target points at 1.3011 and 1.2972

Alternative scenario Moving above 1.3200 can be considered as a signal to buy the pair, with target at 1.3242 and 1.3268

 

 

USD/JPY

 

USDJPY(8).png

 

 

Main trend Short-term period Medium-term period

Neutral Neutral

Changes in the open interest - 39 581 ? - 31 878 ?

Closest resistance levels 102.27; 102.60; 102.82; 103.07

Closest support levels 101.33; 100.97; 100.79; 100.56

Trading recommendations

Baseline scenario Long USD/JPY above 102.27, with the target points at 102.60 and 102.82

Alternative scenario Moving below 101.33 can be considered as a signal to sell the pair, with target at 100.97 and 100.79

 

 

USD/CAD

 

USDCAD(8).png

 

 

Main trend Short-term period Medium-term period

Neutral Bullish

Changes in the open interest - 15 157 ? - 8 464 ?

Closest resistance levels 1.3201; 1.3224; 1.3256; 1.3296

Closest support levels 1.3089; 1.3060; 1.3023; 1.2977

Trading recommendations

Baseline scenario Buy USD/CAD above 1.3201, with the target points at 1.3224 and 1.3256

Alternative scenario Moving below 1.3089 can be considered as a signal to sell the pair, with target at 1.3060 and 1.3023

EUR JPY GBP CAD

 

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EUR/USD: euro supported by cloud, but its under negative pressure

8/8/2016

 

Technical levels: support – 1.1090, 1.1070; resistance – 1.1140, 1.1170.

 

Trade recommendations:

 

1. Sell — 1.1140; SL — 1.1160; TP1 — 1.1070; TP2 – 1.1000.

 

Reason: bullish Ichimoku Cloud, falling down Senkou Span A; dead cross of Tenkan-sen and Kijun-sen.

 

01-eurusdh4(19).png

 

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GBP/USD: pound has lost its positions

8/8/2016

 

Technical levels: support – 1.3060, 1.2930; resistance – 1.3100, 1.3135.

 

Trade recommendations:

 

1. Sell — 1.3100; SL — 1.3120; TP1 — 1.2930; TP2 — 1.2900.

 

Reason: a bullish Cloud, but falling down Senkou Span A; a dead cross of Tenkan-sen and Kijun-sen; there is a trades under Ichimoku Cloud.

 

02-gbpusdh4(9).png

 

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https://new.fxbazooka.com/analytics/9954

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USD/JPY: correction to the Cloud

8/8/2016

 

Technical levels: support – 101.75, 101.20; resistance – 102.30/40.

 

Trade recommendations:

 

1. Sell — 102.30; SL — 102.50; TP1 — 101.75; TP2 — 101.20.

 

Reason: incorrect golden cross formed by Tenkan-sen and Kijun-sen; bearish Ichimoku Cloud; strong resistance formed buy Senkou Span A.

 

04-usdjpyh4(5).png

 

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https://new.fxbazooka.com/analytics/9955

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EUR/USD: "V-Bottom" let bulls to move the market higher

8/8/2016

 

8-8-2016-EUR-H4.png

 

The price couldn’t break the nearest support area, so we’ve got a “V-Top” pattern, which led to a local upward movement towards the Moving Average lines. So, the market is likely going to get a resistance at 1.1120 -1.1148 in the short term. However, if we see a pullback from this area, there’ll be an opportunity to another decline in the direction of a support at 1.1045 – 1.1023.

 

8-8-2016-EUR-H1.png

 

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https://new.fxbazooka.com/analytics/9965

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GBP/USD: bulls going to reach Moving Averages

8/8/2016

 

8-8-2016-GBP-H4.png

 

We’ve got a “V-Bottom” pattern, which brought a consolidation into the market. Considering a support at 1.3017, bulls are likely going to reach a resistance at 1.3148 – 1.3174 in the short term. If a pullback from this area happens, bears will probably try to achieve the next support at 1.3017 – 1.2970.

 

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https://new.fxbazooka.com/analytics/9966

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EUR/USD: extension in wave [iii] is coming soon

8/8/2016

 

Image20160808112035001.png

 

Wave 4 has been ended in a form of a “Double Three”. Also, we’ve got a resistance by the 4/8 Murrey Math Level (P=200), which led to form a downward impulse in wave . Under this circumstances, wave [iii] is likely going to form an extension. The main intraday bearish target is -1/8 Murrey Math Level.

 

Image20160808112035002.png

 

There’s a possible ended wave (ii) below 4/8 Murrey Math Level. Previously, wave (i) was stopped by 2/8 Murrey Math Level. So, the market is likely going to break the last low during wave’s (iii) rally. If we see a pullback from 0/8 Murrey Math Level afterwards, there’ll be an opportunity to see a local upward correction.

 

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EUR/USD: bears faced support by "Window"

8/8/2016

 

0808eurusdh4.png

 

There’s a bullish “Hammer” at the local low, but its confirmation has been canceled by the last bearish “Harami”. Therefore, the price is likely going to test the 89 Moving Average once again. As we can see on the Daily chart, here’s a possible “Three Black Crows” pattern, so right after a local upward correction, bears will probably try to deliver a new low.

 

0808eurusdh1.png

 

We’ve got a strong support by the lower “Window”. Also, there’re a “Harami” and a “Three White Soldiers”, so the market is likely going to test the middle of the last huge black candle once again.

 

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https://new.fxbazooka.com/analytics/9968

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GBP/AUD falling inside minor impulse wave 5

8/8/2016

 

GBP/AUD falling inside minor impulse wave 5 Next sell targets - 1.7000 and 1.6750

GBP/AUD continues to fall inside the minor impulse wave 5 – which started previously – when the pair reversed down from the resistance zone lying at the intersection of the lower trendline of the recently broken wide weekly down channel from 2015 and the resistance level 1.7750. The active minor impulse wave belongs to the sharp intermediate impulse wave © from the end of May.

 

GBP/AUD is expected to fall further to the next sell target at the round support level 1.7000 – the breakout of which can lead to further losses toward 1.6750.

 

GBPAUD_-_Primary_Analysis_-_Aug-08_1510_PM_(1_day).png

 

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https://new.fxbazooka.com/analytics/9969

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AUD/CAD reached buy target 1.0000

8/8/2016

 

AUD/CAD reached buy target 1.0000

Next buy target - 1.0090

AUD/CAD recently broke sharply above the round resistance level 1.0000 (which was set in our earlier forecast as the likely target for the upward movement of this currency pair). The breakout of this resistance level accelerated the active minor impulse wave (iii), which started earlier – when the pair reversed up from the upper trendline of the recently broken daily down channel from December (acting as support now after it was broken).

 

AUD/CAD is expected to rise further in the active impulse waves (iii), 3 and (3) toward the next buy target at the resistance level 1.0090 (top of the previous minor correction 2 from January).

 

AUDCAD_-_Primary_Analysis_-_Aug-08_1500_PM_(1_day).png

 

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https://new.fxbazooka.com/analytics/9970

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USD/JPY: buyers broke the "Window"

8/8/2016

 

0808usdjpyH4.png

 

We’ve got a “Harami” and an “Engulfing” at the local low. Also, there’s a new “Window”, but we haven’t got any reversal pattern, which makes possible an achievement of the 34 Moving Average in the short term. As we can see on the Daily chart, the last “Harami” has been confirmed, bulls will probably try to deliver an upward correction.

 

0808usdjpyH1.png

 

The price has been rising since a “Doji” arrived at the local low. Moreover, bulls have broken the “Window”, so there’s an open door for testing of the 144 Moving Average.

 

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https://new.fxbazooka.com/analytics/9971

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GBP/USD & UK Manufacturing Production: A lower continuation across the board?

8/9/2016

 

Today at 08:30 GMT will be released the UK manufacturing production, where the markets are expecting a rise from -0.5% to 0.0% in the June's reading. During the last months, results for this indicator have been showing a mixed pattern, with the recent two data posting numbers above the expectations, while for April and May, the data was negative. Remind that the BoE recently launched its new easing program and Sterling could be weighted in coming weeks due to the UK economic's slowdown.

 

Our technical picture for GBP/USD at H4 chart, there is a triangle pattern still in the place and the overall trend is bearish. A below-than-expected reading could send the pair to lower levels and possibly, it can break the bullish trend line from that triangle. The mid-term target to the downside is placed around the 1.2869 level, while to the upside, the zone of 1.3143 is the next objective for bulls.

 

GBPUSDH4(5).png

 

 

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https://new.fxbazooka.com/analytics/9972

Edited by riki143
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EUR/USD: bears are preparing an attack

8/9/2016

 

On the daily chart EUR/USD formed a descending trend channel. As long as the pair stays below 1.1235-1.1259, the market's sentiment will remains bearish. Traders should sell either on growth or on breaks of support. The nearest support is at 1.1072. Look for resistance near 1.1175.

 

Screenshot_2016_08_09_07_23_46.png

 

On H1 EUR/USD is consolidating within the 1.1072-1.1105 range. The break below its lower border will lead to a decline to 1.1051 and 1.0967. Successful test of resistance will activate 5-0 pattern. The pair's increase to 1.1141 (50% Fibo of the last descending wave) and to 1.1163-1.117 should be used to form short positions.

 

Screenshot_2016_08_09_07_18_35.png

 

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https://new.fxbazooka.com/analytics/9973

Edited by riki143
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USD/JPY: correction won't affect yen

8/9/2016

 

On the daily USD/JPY chart there's correction to the downtrend. The pair reached resistance at 102.69. A break of this level will open the way up to 103.93 and 104.38, recoil down from the resistance will lead to consolidation in the 100.69-102.69 area.

 

Screenshot_2016_08_09_07_33_37.png

 

On H1 USD/JPY reached 224% target of AB=CD pattern. Successful test of the upper border of the 100.83-101.82 range started a correction. The sentiment remains bearish, so sell on the increases to 103.27 (38.2% Fibonacci of the last descending wave), 103.93-104.08 (50%) and 104.89 (61.8%). Increase above 106 will make the risks of change in trend higher.

 

Screenshot_2016_08_09_07_33_54.png

 

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https://new.fxbazooka.com/analytics/9974

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EUR/USD: euro continues its consolidation under the cloud

8/9/2016

 

Technical levels: support – 1.1070, 1.1040; resistance – 1.1100, 1.1140, 1.1170.

 

Trade recommendations:

 

1. Sell — 1.1060; SL — 1.1080; TP1 — 1.1000; TP2 – 1.0980.

 

Reason: bullish Ichimoku Cloud, falling down Senkou Span A; dead cross of Tenkan-sen and Kijun-sen.

 

01-eurusdh4(20).png

 

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https://new.fxbazooka.com/analytics/9977

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AUD/USD: the heavy growth of Aussie

8/9/2016

 

Technical levels: support – 0.7620, 0.7590; resistance – 0.7650.

 

Trade recommendations:

 

1. Buy — 0.7620; SL — 0.7600; TP1 — 0.7680; TP2 — 0.7750.

 

Reason: a bullish mood of Ichimoku Indicator; a golden cross of Tenkan-sen and Kijun-sen.

 

03-audusdh4(4).png

 

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https://new.fxbazooka.com/analytics/9978

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USD/JPY: testing the Clouds lower border

8/9/2016

 

Technical levels: support – 101.75, 101.20; resistance – 102.30/40.

 

Trade recommendations:

 

1. Sell — 102.30; SL — 102.50; TP1 — 101.75; TP2 — 101.20.

 

Reason: cancelled golden cross formed by Tenkan-sen and Kijun-sen; bearish Ichimoku Cloud; strong resistance formed by Senkou Span A.

 

04-usdjpyh4(6).png

 

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https://new.fxbazooka.com/analytics/9979

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Key option levels for Tuesday, August 9th

8/9/2016

 

EUR/USD

 

EURUSD(10).png

 

 

Main trend Short-term period Medium-term period

Neutral Bearish

Changes in the open interest + 17 720 ? + 1 316 ?

Closest resistance levels 1.1156; 1.1174; 1.1196; 1.1222

Closest support levels 1.1047; 1.1029; 1.1005; 1.0977

Trading recommendations

Baseline scenario Short EUR/USD below 1.1047, with target points at 1.1029 and 1.1005

Alternative scenario Moving above 1.1156 can be considered as a signal to buy the pair, with target at 1.1174 and 1.1196

 

GBP/USD

 

GBPUSD(8).png

 

 

Main trend Short-term period Medium-term period

Bearish Bearish

Changes in the open interest + 3 037 ? + 2 906 ?

Closest resistance levels 1.3162; 1.3211; 1.3273; 1.3346

Closest support levels 1.2936; 1.2912; 1.2885; 1.2856

Trading recommendations

Baseline scenario Sell GBP/USD below 1.2936, with target points at 1.2912 and 1.2885

Alternative scenario Moving above 1.3162 can be considered as a signal to buy the pair, with target at 1.3211 and 1.3273

 

 

USD/JPY

 

USDJPY(9).png

 

 

Main trend Short-term period Medium-term period

Bullish Neutral

Changes in the open interest + 3 283 ? + 1 249 ?

Closest resistance levels 102.88; 103.18; 103.38; 103.63

Closest support levels 102.01; 101.53; 101.29; 101.01

Trading recommendations

Baseline scenario Long USD/JPY above 102.88, with the target points at 103.18 and 103.38

Alternative scenario Moving below 102.01 can be considered as a signal to sell the pair, with target at 101.53 and 101.29

 

 

USD/CAD

 

USDCAD(9).png

 

 

Main trend Short-term period Medium-term period

Neutral Bullish

Changes in the open interest - 871 ? + 1 686 ?

Closest resistance levels 1.3203; 1.3224; 1.3254; 1.3294

Closest support levels 1.3135; 1.3098; 1.3068; 1.3031

Trading recommendations

Baseline scenario Buy USD/CAD above 1.3203, with the target points at 1.3224 and 1.3254

Alternative scenario Moving below 1.3135 can be considered as a signal to sell the pair, with target at 1.3098 and 1.3068

EUR JPY GBP CAD

 

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https://new.fxbazooka.com/analytics/9980

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EUR/USD: "V-Bottom" led to upward correction

8/9/2016

 

9-8-2016-EUR-H4.png

 

The price has been moving up and down under the Moving Averages. So, the market is likely going to get a resistance on the 89 Moving Average. If a pullback from this line happens, there’ll be an opportunity to have a decline towards a support at 1.1045 – 1.1023.

 

9-8-2016-EUR-H1.png

 

As we can see on the one-hour chart, there’s a “Flag” pattern, which points to a possible upward movement in the direction of the nearest resistance at 1.1120. However, if we see a pullback from this level, bears will probably try to achieve a support at 1.1032 -1.1023.

 

More:

https://new.fxbazooka.com/analytics/9984

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